If you are a full-time employee, you must submit a requisition form to the Human Resources office to enroll in the PF. The HR will then deduct the tax on the amount of taxable contribution in the PF account.
A Provident Fund is a savings account in which an employer contributes a portion of their salary each year. The money saved in this account can be used to pay for medical expenses and other important expenses. In case of death or disability, the money can be transferred to a life insurance policy or to another fund. In India, the mandatory life insurance scheme is known as ESI. The ESI scheme is a statutory body under the Ministry of Labour and Employment.
The EPF is a pension plan for employees. The money is invested in a mutual fund. As a result, the balance builds up over time. The amount in the fund is not reduced if the employee dies or becomes permanently disabled. The money in the fund can be transferred to a new employer if the previous employer terminates the program. If the employee loses their job or changes his or her occupation, the fund can be transferred to another institution without any penalty.
An employee can withdraw 75% of the corpus within one month, and the remaining amount can be transferred to another employer. However, if the employee leaves his or her current employer, he or she will have to wait for at least two months to receive the full amount. The tax on the interest earned on the EPF is not taxable when the employee leaves his or her job. Moreover, if the employee quits his or her job, the fund will be converted to a pension.
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