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It’s very important to know PF related 'these' rules

Monday - November 18, 2019 4:13 pm , Category : WTN SPECIAL
Transfer funds from PF instead of withdrawing it
Transfer funds from PF instead of withdrawing it

Know how your monthly pension decided? 

NOV 18 (WTN) - If you work in the private sector, then it is very important for you to know some rules related to PF, because if you are not aware of these rules and for this reason, you take a wrong decision, then you will suffer financial loss. It is possible. According to a survey, most of the people who do the job either do not know about the rules related to PF or the information that knows is the wrong information, due to which such people had to left many facilities and benefits. And they have to bear the loss. Today in this article, we explain to you some such rules related to PF, which is very important for you to know. 

If you work in the private sector and if you change the job, then at the time of changing the job, you should never withdraw the amount of PF but transfer it. By doing this, you will not only get the benefit of tax savings, but you will also get the benefit of pension at the time of retirement. For your information, let us know that the Employee Provident Fund (EPF) is considered as a continuous membership in PF transfer, Employee Pension Scheme. 

For information, let us know that if you work in the private sector and you withdraw money from PF within five years, then not only will you have to pay tax on the withdrawal of PF but also, to get it on your own contribution under section 80C of the Income Tax Act, you will not get the benefit of tax savings. But at the same time, if you make a PF transfer, after this, you will be entitled to tax savings under Section 80C of the Income Tax Act as well as a pension at the time of retirement under.

According to the rules, if a person is in any institution more than 10 and has reached 58 years of age, then he will be entitled to retirement pension. Otherwise, the person will get a pension if he retires before 58 years and stays in service for 10 years. But in both cases, there is a separate criterion for a pension.

You might be wondering on what basis pensionable salary is decided. So for your information, let us know that the maximum pensionable salary is limited to Rs 15,000 per month. As long as the existing members were contributing more than Rs 6,500 per month as on 1 September 2014 at the option of the employer and the employee, and subsequently contributing more than Rs 15,000. The condition for this is that members will have to contribute at the rate of 1/16 percent on salary above Rs 15,000 as an additional contribution.

At the same time, there are some rules for determining pensionable service. For example, the pensionable service of any EPFO ​​member depends on how much they have contributed to the EPF. If a member retires at the age of 58 and is in pensionable service for more than 20 years, then their pensionable service will be extended by 2 years.

At the same time, there is also a fixed criterion for fixing the monthly pension. For example, if a member has a monthly pensionable salary of Rs 20,000 and a pensionable service of 20 years on retirement, then his monthly pension will be Rs 6,285. In such a situation, we advise you to transfer the amount of PF on changing jobs, instead of transferring it, so that you can get tax exemption and pension benefits on retirement.