CURRENT AFFAIRS

Detailed explanation-1: -EPF or employee provident fund is a retirement scheme that every salaried employee can avail from their employer.

Detailed explanation-2: -EPF (Employees’ Provident Fund) is a retirement benefits scheme provided by the Employees’ Provident Fund Organization (EPFO). The employee and the employer contribute to the EPF scheme on monthly basis in equal proportions of 12% of the basic salary and dearness allowance.

Detailed explanation-3: -An EPF fund acts as an emergency corpus when an individual requires emergency funds. Tax-saving – Under Section 80C of the Indian Income Tax Act, an employee’s contribution towards their PF account is deemed eligible for tax exemption. Moreover, earnings generated through EPF schemes are exempted from taxes.

Detailed explanation-4: -All employees drawing a salary are eligible for EPF. Moreover, it is compulsory for all employees earning less than ₹15, 000 to register for the EPF. However, employees earning more than ₹15, 000 can also voluntarily stay in the EPF scheme.

Detailed explanation-5: -PF is the popular name for EPF or Employees’ Provident Fund. It is a government-established savings scheme for employees of the organised sector. The EPF interest rate is declared every year by the EPFO (Employees Provident Fund Organisation) which is a statutory body under the Employees’ Provident Fund Act, 1956.