What are the advantages of PF ?

1. It is a secure*savings plan

2. Employees*and their families are*eligible for*income in the case of death, disability or retirement

3. Employer’s contribution (from Annual Monthly Gross) is totally tax exempt.

4. Employee’s Contribution is eligible for Sec. 88 rebate / 80C Deduction

5. Income generated by the fund is tax exempt. Interest on Employer and Employee contributions are tax free

6. Advances / Loans for specific reasons can be availed from the provident fund corpus

7. Employees PF account is portable between employers.

8. The accumulations cannot be attached by in case of default of loans

1. Withdrawal of PF before completion of 5 years of membership, become taxable in the year of withdrawal with conditions

2. Employer contribution above 12% is taxable in hands of employees

3. The rate of contribution by the member can be any amount not exceeding his basic salary including DA (if any)

4. On resignation, the member can settle the account. i.e., the member gets his PF contribution, Employer Contribution and Interest if he opts for a closure ( on meeting conditions specified in the Act) or can transfer the account to the new employer