IPublic Provident Fund (PPF) is one of the most popular savings schemes among investors. Under one Section 80C of Income Tax Act, you can get a tax exemption on investment of 1.5 lakhs in PPF in any one financial year. The best thing about this option of investment is that it gives you the benefit of EEE (tax-free on investment, tax-free on interest, tax-free on payment) at the time of investment. This is the reason people attract towards it.
New rules related to Public Provident Fund (PPF) investment:
- The Employees Provident Fund Organization (EPFO) said that if the employers do not submit the contribution to the EPFO on time, then they will give the information to its shareholders. Information about the members whose contribution is not collected on time is not reported. In order to increase transparency, it has been decided that those shareholders will be notified by SMS or e-mail, whose employers did not submit the contribution amount to EPFO at the time of the month concerned.
- The member of EPFO will now have the option to withdraw the amount up to 75% in case of unemployment for one month and thus, he can maintain his account also. Under the new provision of EPFO scheme, 1952, in the event of unemployment for two months, the user can also withdraw his remaining 25% amount and close the account.
- If the amount of withdrawal from Public Provident Fund is more than Rs. 10 lakhs then the claim should be accepted online only. Similarly, if the withdrawal amount is more than five lakh rupees in the Employees Pension Scheme, then the only online claim should be accepted. Before the online claim, the shareholder’s bank account should be linked and verified by the system.
- Now, information about the contribution amount will be available through the E-passbook online and the Umang Mobile App. Apart from this, members can also get information through the ‘Missed Call’ service.