BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Traded
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Truncated
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Detailed explanation-1: -Currently, the fund body invests up to 15 percent of its investable deposits in ETFs. It is also allowed to directly invest in listed shares of companies with a market cap of over Rs 5, 000 crore. However, it invests only in ETS and not in individual stocks.
Detailed explanation-2: -Employees’ Provident Fund (EPF) investment remains one of the best options for salaried individuals to build a retirement fund. EPF investment up to ₹ 1.5 lakh per annum qualifies for tax exemption under Section 80C of the Income Tax Act.
Detailed explanation-3: -Effective 1 April 2022, any interest on an employee’s contribution to EPF upto INR 2.5 lakhs per year is tax-free and any interest earned on a contribution over and above INR 2.5 lakhs is taxable in the hands of the employees.
Detailed explanation-4: -The employee and employer each contribute 12% of the employee’s basic salary and dearness allowance towards EPF. The current rate of interest on EPF deposits is 8.10% p.a. The accrued interest on the EPF is tax-free and can be withdrawn without paying for the same.