Employee Provident Fund (EPF) not to give interest for non operative accounts for 36 months effective April 1, 2011

All provident fund subscribers who have accounts which are not operative for 36 months will cease to accumulate any interest after April 1, 2011. Hence it is important that all non operative provident fund (PF) accounts should be transferred or settled before April 1, 2011.

According to EPFO estimates, there were 30.5 million inoperative accounts across 120 offices. In all, the agency had 47.1 million subscribers at the end of March 2009, which is estimated to have increased during the last financial year.

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Tax Saving and other Investment option in India Ready Reckoner

I wish All my readers a Very Happy new Year. Since financial year end is approaching fast, we have very less to to invest in tax savings instruments. Please find comparison of various investment options in the form of a ready reckoner.

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Provident Fund Interest raised 1%(100 basis points)

Its great news for all Public and Private sector employees in India. The Provident Fund Trustees today decided to give a higher interest rate of 9.5 per cent for 2010-11 on their retirement savings.

This hike 100 basis points (1%) has taken the interest on PF deposits of 4.71 crore (47 million) people  working in organised sector from the current level of 8.5 per cent. The decision to raise the interest rate was taken by the Central Board of Trustees in favour of the employees, due to rise in Interest rates in recent times.

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Various investments under section 80C

Under section 80C of the Income Tax Act, certain investments are deductible (up to a maximum of Rs 1 lakh) from gross total income. Section 80C benefit has been provided to encourage long term savings and investments. This limit is extended to everyone irrespective of their income levels and tax slab.

Please find various investment options under section 80C

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Public Provident Fund (PPF) at Glance

PPF is a scheme run by the Government of India, wherein you contribute every year and get specified rate of return. Since it is Govt. sponsored, it is also totally safe. You can be sure no one is going to run away with your money. You invest in it and you get a deduction on your income. Besides, the interest you earn on it is tax-free.

Please find the Summary of PPF account below

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