Can I have both EPF and PPF account?

Yes! An individual can have both the PPF and EPF accounts simultaneously. PPF - Public Provident Fund or PPF is a secured long-term investment option which is totally tax-free. PPF account can be opened in any bank or post office.

Keeping this in view, can I have both EPF and NPS account?

Yes, you can have all Public Provident Fund (PPF), Employee's Provident Fund (EPF) and National Pension System (NPS) accounts simultaneously. All of them have the same motive I.e., to provide income after retirement and secure future of the people.

Also Know, what if I have two PPF accounts? Persons having a PPF account in the bank cannot open another account in the post office and vice-versa. If two accounts are opened by the subscriber in his name by mistake, the second account will be treated as irregular account and will not carry any interest unless the two accounts are amalgamated.

Besides, can EPF be converted to PPF?

(a) There is no provision in law (the PPF Scheme) that allows for any such a transfer of money from EPFO Account. You can not directly transfer EPF amount to PPF. You could withdraw and invest but within the limit of Rs. 1 lac per year.

Is EPF better than PPF?

The EPFO declares the EPF rate every year based on the returns of the EPF corpus. The current EPF rate is 8.50% while the current PPF rate is 7.9%.

Safety – Both are safe due to statutory backing: But EPF is more risky due to equity exposure in it.

Period	Rate
April – June, 2019	8.0%
January – March, 2019	8.0%

Related Question Answers

How much pension will I get from NPS?

PPF/ EPF, Mutual funds, and. NPS or National Pension Scheme.

How Does NPS Calculator Work?

Number of Invested Years	24
Total Amount Invested in NPS	Rs.2,880,000 + Rs.5,773,258.43 = Rs.8,653,258.43
Annual Pension	Rs.415,356.40
Monthly Pension	Rs.34,613.03
Withdrawable Amount on Maturity	Rs.3,461,303.37

Is Super better than NPS?

In superannuation funds, you get a 33% tax-free amount on retirement; in NPS, you get 60% tax-free amount. If you buy annuity from a superannuation fund, you have to pay 1.8% GST; in NPS, the GST is zero. Also, in NPS, you manage the fund.

What is difference between NPS and EPF?

The basic difference between EPF and NPS is that whereas EPF gives assured tax-free returns in the shape of annual interest, the NPS, on the other hand, gives market linked returns where the maximum of 50 per cent of contributions can be allocated to equity markets.

Is NPS enough for retirement?

Don't just invest in NPS for the Rs 50,000 tax benefit. And saving just Rs 50,000 per year in NPS will not be enough for your retirement. If you are older, but have a significant corpus in debt, then you too can benefit from the NPS Aggressive Choice.

Should you invest in NPS just to get additional tax benefit?

NPS qualifies for the normal tax-saving space available under Section 80C of ₹1.5 lakh, and an additional ₹50,000 under Section 80CCD (1B), which is exclusively for NPS. However, investing in equity-linked savings scheme also makes a lot of sense as they may give more efficient returns.

Can I invest more in EPF?

Over and above the mandatory EPF contribution amounting to 12% of the basic salary, the employee can choose to contribute an amount higher to increase the investment in their EPF account. However, if the employee opts to increase their PF contribution, the employer is under no obligation to increase their contribution.

Can a government employee invest in PPF?

PPF or Public Provident Fund is a government supported savings scheme. It is open to everyone – employed, self employed, unemployed or even retired. It is not mandatory and anyone can contribute any amount to the PPF subject to a minimum of Rs 500 and maximum of Rs 1.5 lakh per year.

What is rate of interest on NPS?

The NPS interest rate is about 12% to 14%. National Pension Scheme (NPS) is a voluntary pension scheme offered by the government of India.

Is NPS better than PPF?

For the given period PPF has fixed returns on all counts and any changes are notified in advance. When it comes to returns, NPS seems a better choice than PPF. In any retirement portfolio whether it is National Pension System and Public Provident Fund both have their own place and associated benefits.

How much should I invest in VPF?

VPF is also available for deduction under section 80C and therefore, can be a good tax planning tool. While there is a limit of Rs 1.5 lakh per annum for investment in Public Provident Fund (PPF), there is no such restriction in VPF. Flexibility and convenience are other advantages of VPF.

Is EPF tax free?

To ensure that employees stay invested in their PF, withdrawals made after five successive years of contributions are completely tax-free. An add-on bonus, EPF contributions are tax deductible under section 80C of the Income Tax Act.

Can I have both PPF and NPS?

Yes, you can invest in both the PPF and NPS at the same time. By investing in the PPF, you can benefits of deduction under Section 80 (C) up to Rs. 1.5 Lakhs in a financial year. Likewise, by investing in the NPS, you get the benefits of deduction under Section 80CCD up to Rs.

Can I have both NPS and EPF?

Contrary to some views, EPF and NPS both serve as complimentary and two varying modes of investment returns and the best course is to opt for both. Given the fact that both NPS and EPF offer different benefits of guaranteed return investment, investing in both is the best option that you have.

Can I invest more than 1.5 lakhs in PPF?

As per current income tax laws, one can invest a maximum of Rs 1.5 lakh in PPF in a single financial year. The investment can be made either as a single lump sum or in maximum 12 monthly contributions.

Is NPS safe to invest?

NPS is undoubtedly a safe investment. National Pension System is a government regulated retirement planning tool, hence it is safer as government takes care of the investment made by the common man and it is secured for his future. Extra returns are guaranteed if the investment is done for longer period.

Is PF a good investment?

EPF money is very good till the time you are employed. But the moment you are out of the job, all the interest income on the accumulated provident fund becomes taxable. It might be a good idea to take your money out of the provident fund because it is entirely fixed income.

Can I merge two PPF accounts?

You have to get the approval from the Department of Economic Affairs to merge your two PPF accounts by writing a letter to them. Furnish all your account details in that letter and request them to merge these accounts. Your accounts will be merged after your request has been approved.

Can we have 2 PPF accounts in different banks?

Can I make two or more PPF accounts in a different bank account? Yes, but you can not cross the PPF deposit limit considering both the accounts together. The banks will not know that you have another PPF account and will let you deposit upto the limits individually. But Income Tax authorities will know.

Can I open multiple PPF?

The PPF rules allow the same individual to open another account in the name of a minor but it does not allow to hold more than one PPF account in one's own name. While only one PPF account is allowed to be opened in one's name, there could be a possibility that one ends up holding multiple PPF accounts.

What happens to PPF account if bank closes?

Till when we can continue the PPF account You can even retain the account after maturity for any period without making any further deposits. The balance in the account will continue to earn interest at normal rate as admissible on PPF account till the account is closed.

Can I open PPF account after closing one?

Yes. We can open a new PPF Account after existing PPF Account gets matured. A Public Provident Fund (PPF) account gets matured after the completion of its term i.e. after 15 years from the end of the year in which the account was opened.

Can I open PPF account for my child?

An individual with a PPF account of his own and as a guardian of his child can avail a maximum deduction of Rs 1.5 lakh taking both the accounts together. There is no age limit for opening a PPF account. In the case of a minor, the account is operated by a guardian until the account holder turns 18.

How many PPF accounts can be opened in a family?

A person cannot have more than one PPF account and the maximum amount that can be invested in a PPF account is Rs. 1.5 Lakh (as per current law). However, a family can have multiple PPF accounts: one for the father, one for the wife, one for each child, and so on.

How many subscriptions can be done in a FY towards PPF account?

An individual can deposit money into a PPF account, a maximum of 12 times, during a given financial/fiscal year. Also, No more than two deposits can be made to PPF scheme, during any given month.

How can I close my second PPF account?

In your case, you have opened another PPF account before submission of request for transfer. This will be counted as second account which is not allowed and will be treated as invalid. However, now that the account is opened, it cannot be closed. So you can continue the same by depositing the minimum subscription.

Is PPF only for salaried employees?

While EPF is mandatory deduction from salary, PPF is purely voluntary and needs to be managed by yourself. The Employee Provident Fund provides benefits for salaried and employed residents of India. The Public Provident Fund is open to any resident of India and is both a tax savings and savings instrument.

Is PF interest taxable?

Interest earned on EPF balance post retirement is taxable. Typically, all salaried individuals contribute at least 12% of their salary to the Employees' Provident Fund (EPF) account, and their employer matches the contribution. The interest accrued is tax free only after five years.

Is PF maturity amount taxable?

Tax on provident fund. The EPF maturity amount is tax-free, if you are in the continuous service of more than five years. You have to return back the tax deduction in case of early withdrawal from the EPF contribution.

Can we increase VPF contribution?

VPF is an attractive investment option for salaried employees. However, if the employee opts to increase their PF contribution, the employer is under no obligation to increase their contribution. The VPF is available only to salaried employees in India.