There are many benefits with more interest on PF account, you get free insurance of Rs 6 lakh.

PF facility is provided to all employees from Employees Provident Fund Organization (EPFO).  For this, some money is deducted from the employee’s salary every month.  So that this money can come in handy after retirement.  However PF account holders get many benefits besides that.  Very few people will know about it.  Learn about 5 benefits.

 Free insurance

 You also get a lot of default insurance as soon as you open a PF account.  Under the Employees Deposit Linked Insurance (EDLI) scheme, you get insurance up to Rs 6 lakh on your PF account.  EDLI provides for a lump sum payment to the designated beneficiary of the insurer in the event of death due to natural causes, illness or accident.  The purpose of this scheme is to provide financial security to the family member after the death of the employee.  This benefit is given to the employee by the company and the central government.

Taxes are saved

 EPF is one of the most common and good option to save tax.  There is no advantage in the new tax system.  But in the old tax system you will get tax exemption up to 12% contribution of salary. These savings are tax exempt under Section 80C of the Income Tax Act.

There are many benefits with more interest on PF account, you get free insurance of Rs 6 lakh.

 Benefits of pension after retirement

 Under the EPFO ​​Act, 12% of the employee’s basic salary plus DA goes into the PF account.  The company also contributes 12% of the employee’s basic salary plus DA.  Of the 12% contribution of the company, 3.67% goes to the employee’s PF account and the remaining 8.33% goes to the employee pension scheme.

 Withdrawal facility in between

 The government has given the facility to withdraw money before retirement in view of the epidemic and unemployment.  This means you can withdraw money from your PF fund and use it when you need it.  This will save you money.  An employee has no income tax liability if he has completed 5 years of service in a company and wants to withdraw PF.  10% TDS and tax is deducted on completion of 5 year period.

Interest is also earned on a deactivated account

 You may not know it, but PF account holders also get interest on deactivated accounts.  This means that even if your PF account has been deactivated for more than 3 years, you will continue to receive interest.  This change was made in 2016 by EPFO.  Previously, interest on PF money was stopped after deactivation for 3 years.