Employees Provident Fund Calculation Software

EPF2.png' alt='Employees Provident Fund Calculation Software' title='Employees Provident Fund Calculation Software' />PPF Account Details Public Provident Fund Account Interest RatePPF, Public Provident Fund Account Interest Rate, Tax Benefits, Withdrawal, Age LimitWe have heard a lot about PPF. Many of us have PPF accounts. But the question is, do we know everything about PPF Some of us may know but for many of us, the investment areas always kind of remain hazy. This haziness comes from the fact that most of the investment instruments are described using jargon and are too lengthy and boring to read. In this article, we will try to take those factors out of the equation and try to explain everything about PPF in the simplest possible language that everyone can understand. The primary aim of this article will be to ensure that by the time you complete reading this article, you should be fully aware of what PPF really is and how it can help you or perhaps, not help you. With unmatched integrity and professionalism, Pensions Investments consistently delivers news, research and analysis to the executives who manage the flow of funds. Modified Assured Career Progression Scheme MACPS for the Central Government Civilian Employees Implementation of the 7th CPC recommendations Clarification. We are ready when you are. Need to grab a coffee Grab it It will take a while to complete reading this article. Birth and Purpose of PPF Account. PPF or Public Provident Fund is an old fellow. Pretty old. The concept was conceived and given shape by the Government of India back in 1. This means that PPF has been in business for 4. It is widely accepted that the longer a financial product stays in business, the safer and more trustworthy it gets. So, PPF or Public Provident Fund is something you can really count on. PPF is going to stay around for many more years to come. Now the question is, what was the purpose of launching PPF Good question We all know that post independence, India, which was 2nd richest country in this world 1st was China in terms of global trade, became one of the poorest countries in world because of British Imperialistic exploitations. People really didnt have ample money and the whole economy was struggling to get out of the terrible condition. So, it was important to encourage savings among people. PPF was created as a tool for this massive task. The Ministry of Finance of the then ruling government said, investing in PPF will give the following benefits Whatever money is invested into PPF account will become tax free. This means that if a person earns, say INR 5. PPF, Public Provident Fund Account Interest Rate, Tax Benefits, Withdrawal, Age Limit We have heard a lot about PPF. Many of us have PPF accounts. INR 1. 00 in PPF account, INR 1. Only INR 4. 00 will become taxable. So, this means that people had to pay less income tax. Again, interests that would be earned by PPF deposits will not be taxed. This means that if a person deposited INR 1. INR 9 assuming that interest rate was 9, the person will enjoy that INR 9 as tax free earning. Employees Provident Fund Calculation Software' title='Employees Provident Fund Calculation Software' />No taxes will be applied on the earned interest. Saving in PPF account will create a corpus of money that will eventually work as a retirement security. This means that a person will have a lump sum amount of money in hand when he or she retires. This lump sum money will help the person to maintain a moderate and decent lifestyle post retirement even when the monthly income earnings stop. From taxation aspect, yes, Public Provident Fund became the most effective tax saving instrument. That was the whole purpose of introducing PPF in market. A Bit About PPF Accounts. Anyone who earns can create a PPF account and deposit money. However, there are limitations to the amount that can be deposited and for the amount of time such deposits can be made. The interest rate that is offered on PPF deposits changes every financial year. This rate is announced by the government. This interest rate can fluctuate from year to year. It can increase or it can decrease. For instance, the interest rate on PPF investments for fiscal year 2. Please remember that when we are referring to interest rates, we are actually referring to yearly interests. That is, interest that can be earned in one year. So, if a person deposits just INR 1. UkUwv3nCjR0/hqdefault.jpg' alt='Employees Provident Fund Calculation Software' title='Employees Provident Fund Calculation Software' />In computing the taxable income of the individual, the following deductions under section80C, 80CCC, 80CCD, 80CCE of the Act are to be allowed from his gross total. Features of Tally Software Tally. ERP 9 offers business functionalities such as Accounting, Finance, Inventory, Sales, Purchase, Point of Sales more. INR 8. 1. 0. That is the yearly earning Opening PPF Account. In case you are willing to open a PPF account, you have to do so through a bank or a post office. There are no other options left. Which banks to approach Well, you can approach any nationalized bank in the area you live. In case you are looking for a private sector bank, you need to first check whether the bank has authorization or not. If a bank or any of its branch has an authorization for opening PPF accounts for its customers, you can approach the bank. Post offices are all nationalized and hence, you can simply approach the post office in your area and open a PPF account. In order to open a PPF account, you need to fill up an account opening form and also submit the necessary documents that the bank or post office asks for. While opening an account, you will also have to deposit the minimum allowed deposit amount. Once you do that, the PPF account will be opened and you can operate it as required. However, you need to remember one thing. Just like the interest rate is not fixed and can change every year, the maximum yearly investment allowed in a PPF account can also change over time. The maximum allowed investment is also announced by the government. Hercules Mapper Pack 2.1. Date Calculations in PPF Accounts. Because PPF is a financial product, it always follows the fiscal year and not the calendar year. The fiscal year is calculated from 1st of April every year to 3. March next year. This means that the current fiscal year 2. April 1, 2. 01. 6 and will end on March 3. Going by this calendar, if you are opening an account in say, December, 2. March 3. 1, 2. 01. However, if you are opening your account on say April 1, 2. March 3. 1, 2. 01. In the first scenario, you will earn interest only for 4 months while in the second scenario, you will earn interest for a whole year. Benefits and Features of PPF or Public Provident Fund. This is definitely one of the most important sections that you have been eyeing on, right Well, in that case, let us waste time no further and begin. Public Provident Fund comes with a number of advantages that include tax benefits, interest earnings and of course retirement security. Employees-Provident-Fund.jpg' alt='Employees Provident Fund Calculation Software' title='Employees Provident Fund Calculation Software' />However, one of the biggest advantage of PPF is its pocket friendly nature. Unlike many other financial products on market, the PPF comes with two big advantages It is backed by Government of India and hence it is extremely secure. The minimum deposit allowed under PPF is very low, making it a very good investment avenue for people belonging to very low income groups as well. Now that we know the basic advantages, let us take a quick look at the features of PPF in a tabular format. We prefer a table over bullet points because it helps to get a quick grasp over things. Features. Details. Account opening at. Any nationalized bank and its authorized branches. Any authorized private bank and its authorized branches. Post office. Tenure of PPF account. Interest rates applicable on deposits. Changes every year. Interest rate is announced by the government at the beginning of each financial year. For the current financial year 2. Interest earnings are calculated as compounded growth. Minimum deposit for account opening. INR 1. 00. Minimum and Maximum allowed in a year. Minimum INR 5. 00 and Maximum INR 1. Maximum of times deposits can be made in a year. Failure to deposit. It is mandatory to deposit the minimum amount every year. Failing to do so will make the account in active. However later, one can make a fresh deposit and the account will be activated again. Methods that can be used for depositing money. There are several options available for making deposits. Online transfer of funds, demand drafts, post office deposit, Cheque deposit or direct cash deposit. Withdrawal facilities on PPF account.