The deduction under Section 80C has been increased. Instead of random investments, use the additional limit to fill the gaps in your financial plan.
EPFO recently notified the higher monthly wage ceiling of Rs 15,000 for becoming member of its social security schemes, which is effective from Sept 1.
EPFO has started this process following Prime Minister Narendra Modi's push to allow people to self-attest their official documents.
Govt's decision to fix pension entitlement of Rs 1,000 under the Employees' Pension Scheme 1995 (EPFS-95) will immediately benefit 28 lakh pensioners.
Rturn from NPS was around 11.88% over the last two years against 8.8% on the EPFO. So, workers should have the choice to migrate.
Last week, the labour ministry instructed the Provident Fund department to set up a sub-regional office in his home constituency of Jhunjhunu.
Industry experts feel the new investment allocations could boost annual returns for provident funds by 0.1% to 0.2%, at current market rates.
Plumbing matters, India's 6.3 crore enterprises translate to 7,500 companies with a paidup capital of over Rs 10 crore. Only 12% of our labour force works in manufacturing.
The rate of interest during 2014-15 has been declared at 8.75%, 8.75% in 2013-14 and 8.50% during 2012-13, Labour Minister said.
Aam Aadmi Party leader Arvind Kejriwal today promised to abolish the contract labour system if his party was voted to power.
Worried over political implications of PF interest rates cut amid state elections, govt has decided to defer its decision on the rate till elections end.
As NPS takes centerstage, enhancement of tax saving limits for the NPS means a new deal for retirement savings for employees of private firms.
Shelar’s portfolio includes debt in the form of fixed deposit, PPF, EPF and insurance plans, while equity includes stocks and mutual funds.
The Finance Minister said there are unclaimed deposits of about Rs 3,000 crore in the PPF, and approximately Rs 6,000 crore in the EPF corpus.
The EPFO had settled 123.36 lakh claims during the previous financial year, 111.42 lakh claims in 2012-13 and 90.5 lakh claims in 2011-12.
"He (Labour Minister Bandaru Dattatreya) promised that Bill for Social Security for Unorganised Sector workers will be brought in," said a press release.
The EPF rate has been at 8.5% since 2005-06 and the rate would have stayed the same in 2010-11 as per its earnings.
NPS is a sound vehicle for accumulating a corpus for retirement compared to the EPF whose management is opaque & return is sub-optimal.
Over 50 million employees of the organised sector are in for a surprise Dussehra bonanza from the government.
CAs advise that you must collect all the documents related to income earned during the FY to ensure that there are no mistakes made while filing ITR.
The government wants to raise the monthly wage ceiling to Rs 15,000 from the existing Rs 6,500 under the Employees' Provident Fund Scheme.
Companies managing provident fund accumulations of their employees in-house may soon have to hand over the entire corpus to employees provident fund organisation.
Markets discounted the worst initially, but soon realised that things are getting better.
The recently-submitted petition urges the government to take a re-look at the laws governing salary payment of lowwage employees by allowing them to choose how their salary is paid and contributions invested.
EPFO's panel has approved a proposal to increase the maximum amount assured under the EDLI scheme to Rs 5.5 lakh from Rs 3.6 lakh.
According to the EPF and pension schemes run by the EPFO, claims complete in all respects should be settled within 30 days of receipt.
These social service agents could also help the EPFO in a big way in case of Universal (portable PF) Account Number scheme.
Large number of goals will require meticulous planning and disciplined investing in a phased manner to ensure security in the long term.
Labour and Employment Minister Sis Ram Ola asked the staff of Employees Provided Fund Organisation to fast track settlement claims of affected families.
"I may be late in starting with planning, but I want to start saving and build a strong portfolio in the next five years,” says Vinayak Shrigadi.
The high savings rate means that Kajrolkars can reach their goals provided they align their investments and secure their risks adequately.
Bidders or interested parties can seek clarification and enquire about terms and conditions of the tender in the conference, officials said.
The Chauhans not only need to realign their portfolio, but also make fresh investments to meet their primary goals with ease.
Business chamber Ficci has opposed the proposed changes to the definition of 'basic wages' under the Employees Provident Fund & Miscellaneous Provisions Act (EPF and MP Act) 1952.
The Budget has proposed an additional deduction of Rs 50,000 if you invest in the NPS. Find out how and why you should invest in the scheme.
PFRDA Chairman Yogesh Agarwal explains why the NPS funds for government employees have not earned significantly higher returns than the EPF and why the investment norms need to be relaxed.
The amendment Bill of Child Labour Act, pending since 2012, has proposed to ban employment of children below 14 years of age in any occupation.
ET spells out the common financial mistakes made by women. And what women, and even men, can do to rectify them.
The Hyderabad-based couple will need to hike equity exposure, align investments and put off early retirement to hit financial targets.
Trade unions will approach EC against the government decision to reject the proposal to club allowances with basic pay for PF deductions.
According to experts, the clubbing of allowances would have increased the savings of organised sector workers under schemes run by the EPFO.
EPFO plans to give an option to its subscribers to choose from investment products where they want their money to be invested.
As the government completes two years in office, we list 10 steps taken by the Centre that have made a difference to you as an investor.
Exposure to equity and heavy investments early in life mean that the Barmans just need to streamline their portfolio and secure their risks.
NPS portfolios are a mix of 2-3 different funds. We identify the best performing funds for different asset allocations to help optimise your gains.
The Kumar family is unlikely to face major hurdles in their financial journey if they invest correctly and cover their risks adequately.
Before the Nandis start planning for their goals, they should reschedule their loan portfolio to increase their investible surplus.
If implemented properly , equity returns could be the change from dooming EPFO beneficiaries to old age poverty to enabling decent returns on retirement savings.
EPFO has asked its field staff to clean up records as it plans to issue permanent account numbers soon to its over 5 cr subscribers.
The EPFO move to ask the govt to bar workers from withdrawing their PF balances on switching jobs is a frantic but incremental step.
The National Pension System, which used to be an airtight investment, has become more flexible and permitted withdrawals for specified needs.
The regulator plans to put in place a clear bar on NRIs and entities owned by them and resident Indians subscribing to participatory notes, a move aimed at preventing possible round-tripping or laundering of black money.
Ironically, the ad was issued in response to the SC orfer that directed the co to repay Rs 24k cr collected from 3 cr plus investors.
EPFO trustees today approved a proposal to provide a monthly pension of minimum Rs 1,000, a decision that will immediately benefit about its 28 lakh pensioners.
The parliament session, along with derivatives' expiry and the US monetary policy review, will dictate the trajectory of the Indian equity markets during this week. Add to this the Q4 results of a number of big banks coming up, the stage is set for the day.
EPFO has already captured bank account details in respect of 1.80 crore employees, PAN details in respect of 86.9 lakh employees.
An increase in equity exposure, aligning investments with goals, revamping insurance portfolio and pushing back retirement will help the Kumars.
"Regulatory focus on the the fee mechanism should be preceded by the building up of a skilled talent pool of advisers."
India's National Pension System (NPS) is well-designed, has low costs and will offer decent returns over the medium term.
The SDS, money borrowed by the central government, at present yields 8% return for the Employees' Provident Fund Oraganisation (EPFO).
In a directive, labour ministry has told EPFO to embed the Aadhaar number in bank accounts of beneficiaries in 43 districts by Dec 31.
While the form may be a simple one to fill, in a haste to meet the deadline, do not make mistakes that could cost you throughout the year.
"I have purchased several insurance policies and want to know whether I should continue or switch to better ones." — Tejas Patel
Central Provident Fund Commissioner Samirendra Chatterjee says the purpose of an EPFO account is defeated when people withdraw money every time they change jobs.
How you distribute your tax-saving investments depends on your needs and goals. ET Wealth looks at where taxpayers in five different situations could invest.
EPFO has decided to pay a higher return of 8.75% in this fiscal compared to 8.5% last year, without making the manner of financing the payout transparent.
Retirement fund body EPFO on Monday decided to provide 8.75 per cent interest on PF deposits for its over 5 crore subscribers in 2013-14.
"I’d like to know about investment tools that can help increase my wealth and ensure a comfortable living for my family." — D.V. Srikant
Union Labour Minister Narendra Singh Tomar today said the one proposed at Bhubaneswar would be established as it was already decided.
Despite being single and having simple goals, Mahesh Macwan may not be able to fully achieve his goals. But, he can redirect his investments to maximise his returns.
Senior BJP leader and chairman of Parliament’s Standing Committee Yashwant Sinha on Thursday said the government’s rejection of the panel’s suggestions for fine-tuning the pension reforms bill is a matter of concern.
The Supreme Court has ruled that employees of a liquidated company are entitled to first preference of provident fund.
You should ideally start saving for retirement as soon as you start earning. But many people get serious about it only when they reach their 50s.
A conscientious investor may not necessarily be prudent because aggressive investments don’t always translate to optimum returns.
Employers often split wages into different allowances to reduce their PF liability and also increase the take home pay of their workers.
The Employees Provident Fund Organisation (EPFO) is set to offer a better-than-expected return of at least 9% in 2011-12.
Central trade unions will take decision to launch strong protest against government for alleged moves to dilute labour laws during their convention on May 26.
The next important goal for the family is retirement, for which they have estimated a need of Rs 2.38 cr in 18 years to maintain their existing lifestyle.
The passing of the pensions regulator act will spur growth of the investment corpus in the pensions sector to over $1 trillion by 2025, says a report jointly prepared by the Confederation of Indian Industry and global professional services firm Ernst & Young (EY).
According to the office order, the Labour Ministry has committed that the seeding of KYCs to the UAN number would be completed by 15th October, 2014.
Despite the recent reduction in service tax, returns from annuity plans remain too low.
For benchmark indices, it was a week of consolidation after a huge post-Budget rally. The BSE Sensex and the Nifty50 advanced 0.3% each during the week.
Interestingly, the Budget papers said the limit of deduction under Section 80C was raised to encourage household savings.
Budget will encourage more saving & investment by people which will help them save money for their future needs & also increase overall savings rate.
Labour min has urged tightening of EPF rules to ensure that no industry in organized sector, including BPO, KPO services, are able to elude coverage.
These 79 companies operate private PF trusts and manage their workers' retirement funds as well as account themselves.
Those earning below Rs 5lakhs to save an additional Rs 3,000 in taxes. Tax rebate under Section 87A has been raised from Rs 2,000 to Rs 5,000.
With interest rates fixed income investments coming down, PPF remains a suitable alternative for allocating debt portion of one's portfolio.
Despite a high savings rate and net worth, the delayed start to focused financial planning and poor risk coverage mean that the Shingtes may not be able to meet all their objectives.
The New Pension Scheme for private citizens has generated an average return of 12% in the first year of its operations.
The labour ministry has opposed the finance ministry’s suggestion that there should be checks on early withdrawals from the employees PF accounts.
The labour ministry has opposed the finance ministry’s suggestion that there should be checks on early withdrawals from the employees provident fund accounts, as it sought to defend the right of subscribers to use their own money.
"I want to know if the mutual fund schemes I have invested in are good. Is there a need to shift to some other funds?” — Babu S
Kinariwalas have been aggressive investors with a well-diversified portfolio, but their desire to buy a larger house may impact the planning for other crucial goals.
The I-T Department has slapped the Employees’ Provident Fund Organisation (EPFO) with an unprecedented tax demand for failing to tax premature withdrawals by account holder.
The Kalambes will have to repay their debts and find ways to raise their surplus be able to achieve their goals.
Labour ministry’s proposal to raise the statutory wage ceiling for provident fund contributions should be turned down.
"One major factor was lack of awareness about pension. Al though things are changing, we need to drive home the message that pension is important."
The meeting of the panel is being called as outgoing FM P Chidambaram did not extend a March 31 deadline for the trusts to get regular tax exemption through the EFPO.
Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service