People doing private jobs contribute a part of their salary every month in EPF account. The employer also contributes the same money to the EPF account of the employee. This prepares a large fund in the long term. This money is given to the employee after retirement. The money deposited in EPF is not only useful for you after retirement, but it helps you in many ways even before that. The first advantage of accumulating big funds in EPF is financial security. You know that after retirement you will get a lump sum big fund. This makes you feel financially safe. If you have any financial responsibility, then you can fulfill it with this money. Interest is available on money deposited in EPF. Its calculus is on compounded basis. Due to this, your money keeps increasing year after year. The concerned newscast is determined every year, the government decides the interest of the money deposited in the EPF every year. For Financial Year 2024-25, the government has fixed 8.25 percent interest rate. When Maxim interest on banks FD is between 6.5-7 percent, 8 percent interest can be called quite attractive. Such interest is rarely found in the scheme with any other fixed return investment. Due to the higher interest rate, the growth of money deposited in EPF is good. Tax-deduction also gives the benefit of tax deduction on the capacity of the employee in the IPF account. Under Section 80C of the Income Tax Act, 1961, if your total contribution in EPF account in a financial year is Rs 2.5 lakh or less, then the interest is received on it. But, when the contribution is more than Rs 2.5 lakh, the interest found on the additional amount comes under the scope of tax. It also read: EPF can withdraw money on emergency, know which conditions come in emergency, the money deposited in the Emotional Scheme also works for you. EPFO rules allow the employee to withdraw some money deposited in EPF in many situations. For example, for the treatment of son/daughter or brother/sister, some money deposited in EPF can be withdrawn. When unemployed, the employee can withdraw money deposited in his EPF account. Money can be withdrawn for children’s higher education.
