Budget 2015-16 is a transformational document on how Finance Minster Arun Jaitley wants to change the composition of long-term investments of retail investors.
The retirement fund body, EPFO, circulated this order in its website yesterday for reference for its field staff.
Private trusts, which manage employees provident fund schemes, are finding it difficult to match 9.5% return that EPFO announced for 2010-11.
"Investment in infrastructure has risen by Rs 70,000 crore. Infra is really the key expenditure that the government needed to push up, and it has done that."
Exchange-traded funds have attracted a lot of investments but find out if they suit you. Here’s a primer that will help you make up your mind.
The labour ministry has ruled out the possibility of opting for a liberal equity-laced investment pattern for the country’s provident funds.
Some question whether India needs more than one stock exchange, though the US and Australia buck the trend of ‘exchange consolidation’.
Given the erratic nature of income, it's extremely important for freelancers and self-employed professionals to maintain an emergency fund.
Trade unions are wrong to block the proposal to let workers of the employees pension scheme (EPS) switch to the National Pension Scheme (NPS).
Aligning their intent with action and linking investments with goals will make Hariharans’ financial journey much easier.
Many Indians don't realize the importance of saving till they are well into their 40s, but Pankaj's financial plan is on a strong footing.
The draft bill enables central government to reduce the PF contribution to 10 per cent from existing 12 per cent of basic wages.
An early start to planning means that Prathap Salian will not have much problem saving for his goals.
India’s job problem is huge and complex with no easy answers. Modi govt, in its last year, is short on time. And India’s jobseekers short on patience.
Taking the first step towards launching online PF transfer claim facilities, EPFO had earlier this month unveiled a revised claim form for the purpose.
There are large number of investors who still have not got the equity story and they would like to have a steady take in growth, they should get started with balanced funds.
To facilitate online transfer of PF accounts of employees on changing jobs, retirement fund manager EPFO has started the process of registering digital signatures of employers which is a prerequisite.
An empowered committee of the retirement fund body EPFO today approved granting regular tax exemption to 68 private provident fund trusts.
Every week a mutual fund advisor answers queries from readers.
The body had also decided to seek the Aadhaar numbers of its pensioners through the banks.
The ministry also managed to get two bills - Apprentices Amendment Bill 2014 and the Labour Laws Amendment Bill, 2014 passed in both the Houses of Parliament.
It is perverse that markets should tank at news of real strength in the economy, in the place of easy-money-fuelled artificial growth.
Retirement fund body EPFO's trustees will deliberate tomorrow on investing part of over Rs 6 lakh crore corpus in equities and relaxing norms for increasing exposure in housing finance firms.
As curtains draw on 2016, ET looks back at the events that rocked Bengaluru in 2016.
Trade Unions are seeking higher returns on the EPF money at a time when fixed deposits in banks were fetching higher interest. Achieving financial well-being
The country’s largest retirement fund-the Employees’ Provident Fund Organisation - is kicking off the process to appoint new fund managers from April 2011.
"With every step we are moving in the right direction. We are maintaining reasonable growth levels"
The EPFO cant keep discovering a goldmine in its accounting every year. A superior return is next to impossible when investments are made only in special deposits that earn a fixed interest, or in government and PSU bonds.
EPFO's CBT will consider a proposal to raise the retirement age of organised sector workers to 60 years for its pension at a meeting scheduled for Wednesday.
The I-Tax Act, 1961 provides several avenues by way of deductions under different sections of the Act, to help one invest or make an expense to reduce the tax outgo.
Retirement fund body EPFO's trustees on February 5 will decide on amending its scheme to provide a minimum monthly pension of Rs 1,000.
The pension scheme for other than govt employee with investment focus on corp debt generated return of 14.19%.
It is essential that the mutual fund industry gets a level-playing field, at par with other financial products. For this, tax discrimination should be abolished.
Aggressive saving and investing over the years means that Acharya has nothing to worry and will reach his goals without much effort.
Income Tax department has inspected the accounts of noted builder Hiranandani Group after the CBI conducted raids on their companies two days back for alleged failure to deposit dues towards EPF.
The United States’ embassy in India could lose income-tax breaks on retirement savings of its Indian staffers from April 1, 2014.
Biswas needs to plan for his retirement, for which he will need Rs 1.63 crore in 24 years to be able to maintain his existing lifestyle.
Reaching out to the working class especially in the unorganised sector, the government rolled out several measures in 2011.
EPFO has reduced stipulated time limit for resolving its subscribers' grievances to 15 days from existing 30 days.
Last week, Minister of State for Finance Namo Narain Meena said no portion of the estimated Rs 83,363 crore corpus with GPF will be invested in stock markets.
As the Finance Minister and his team start work on the Budget, here are some suggestions from experts that are worth including in the draft.
Union Budget 2013 has proposed to extend the deadline for seeking exemption certificate by private PF trusts by one year till March 31, 2014.
The infrastructure sector could soon have a steady supply of long-term funds if the finance ministry is successful in its bid.
Amend the law to allow voluntary migration of individual workers from EPFO to NPS.
Finance ministry to study tax and regulatory norms on new pension scheme, EPF, MFs & ULIPs.
However, around 25 minutes into his speech, the mikes went silent and members protested they could not hear Mukherjee.
Subscribers to the Employees Provident Fund (EPF) may earn at least a marginally higher payout for 2008-09 than the 8.5% they received in 2006-07 and 2007-08, but only if do not withdraw their funds mid-year.
Retirement fund body EPFO may put "in abeyance" decision to make Aadhaar number mandatory for its over 50 million subscribers and new members.
The contributions to the PPF and pension schemes after the commencement of the code, it added, should be subject to EET mode of taxation.
Funds collected in the form of cess are remaining unutilised by the states, Mallikarjun Kharge said.
The EPFO board also decided to stop paying interest to accounts that have not seen any fresh contribution for three years or more.
The Government on Monday said it has no plans to utilise unclaimed money of Employees Provident Fund Organisation (EPFO) which has accumulated to the tune of Rs 3,837 crore.
"EPFO trustee may consider the proposal for deciding the rate of interest on PF deposits in its meeting on January 15," a source said.
All that would happen is that the employee’s take-home salary would come down drastically, she would get to spend less, and get to save less in a manner of her choosing.
A whole lot of workers never get to claim their dues when they switch from one job to another because the procedural requirement is mind-boggling.
Taking a combative stand on its decision to pay 9.5% interest on the provident fund accumulations, the Employees Provident Fund Organization has said there is nothing wrong in its calculations that yielded the surplus facilitating stepped up payment.
Experts advise that instead of investing more to claim relief under Section 80C, it may be better to forego a part of savings on tax outgo.
For pvt subscribers, date of joining service & joining NPS might have been different, as the scheme was not open to non-govt employees before 2009.
Pension reforms will ensure that more long-term funds flow into the stock market, thereby reducing excessive dependence on foreign-fund inflows.
EPFO has reached out to present employers of PF members & sought refunds, citing wrongful credits of excess interest on past PF balances.
Besides this, the unions would ask to universalise and strengthen public distribution system and rationalise tax, duty and cess on petroleum products, with a view to reduce burden on people.
In the present scenario, Central Government contributes 1.16 per cent of workers' basic wages (basic pay plus dearness allowance), towards EPS-95 fund.
The EPFO has said this in response to a letter written by Financial Services Secretary to Labour Secretary.
Close to Rs 4,000 crore is lying with the Employees Provident Fund Organisation (EPFO) in its unclaimed deposit accounts with no takers.
Investing more than what is required in tax-saving instruments don’t fetch any further tax breaks and often offer poor returns.
'Term Plans are the cheapest and best form of insurance available for individuals today.'
If the pressure is on rupee to appreciate, the question is how much the rupee will be allowed to appreciate or whether RBI will try to maintain it around the same level where we have seen it for the last two-three months
The Employees’ Provident Fund Organisation (EPFO) can no longer invest in the bonds and deposit instruments of these banks.
PF offices have also been asked to take immediate action wherever there is no compliance, by invoking the penal provisions of the Employees Provident Fund Act of 1952
In govt effort to protect retirement savings, companies will get to manage only accounts only and hand over employees PF corpus to EPFO.
The govt proposes to loosen strict hire-and-fire rules, make it tougher for workers to form unions as well as raise the severance package by three times.
Tens of thousands face the prospect of losing their jobs.
INTUC appreciates the policies being pursued by Congress to give a boost to our economy, union president G Sanjeeva Reddy said.
The labour ministry is pursuing the cabinet to clear the proposal for a minimum pension of Rs 1,000 to workers under the Employees Pension Scheme, Union Minister of State for Labour Kodikunnil Suresh said today.
A government official said an interest rate of 9% or higher was a distinct possibility for the next year as well.
The government plans to appoint by September this year new fund managers for managing the Employees’ Provident Fund Organisation’s (EPFO) over Rs 1.55 lakh crore corpus.
EPFO will soon free exempted trusts to utilise and tap their Provident Fund Trust reserves to meet the statutory payout rate.
The Central government schemes of the NPS gave average SIP returns of 5.37% while state government employees had to be content with 4.96%.
Indian investors are still in reverse track, Nilesh Shah tells ET Wealth. The good news is a more mature set of investors has entered the market in recent years.
PPF has been a favourite investment plan with tax savers for some time now. Interest rate on PPF for this fiscal stands at 8.7%.
A special drive would be undertaken by the Employees' Provident Fund Organisation (EPFO) and the Employees' State Insurance Corporation (ESIC) to bring more workers under their coverage.
Amid differences between ministries of labour & finance, former said decision of EPFO would be final.
More than 16 lakh central and state government employees have almost Rs 8,500 crore invested in the NPS.
NPS votaries have often argued that stock investments give the scheme a distinct advantage over the 100% debt-based Employees’ Provident Fund or EPF.
The government will change the withdrawal rules and provide more tax incentive to make NPS its flagship retirement savings scheme.
Interest rate on EPF for the current fiscal is yet to be fixed despite the first quarter of the year 2012-13 having ended.
Haven't linked Aadhaar with various services yet? Here is a collection of stories that can solve all your Aadhaar linking problems.
When investors put their money in a tax-saving product, they are usually concerned only with the amount of tax they will save.
To build wealth, investors need to heed a number of nudges, though the desired outcome will lie in their ability to walk that final mile.
Sources said, meeting is likely to postpone a decision on EPF rate as there is no unanimity amongst members.
The yield on Jan 2026 notes fell in 11 out of 14 sessions. India’s 10-year bond yield closed at 7.419% on Friday, compared with Thursday’s close of 7.45%.
As retirement planning involves understanding of various asset classes, one should take help of expert or financial advisors to design the same: Arun Thukral
The problem with taxation of withdrawals under the National Pension System is not that it’s confusing, but that it may not be fair.
Govt is likely to raise minimum pension to Rs 1,000 pm for workers contributing to EPFO, but employees will have to sacrifice the bonus they get on 20 yrs of service.
There is ambiguity over how the 1% differential between EPF rate and the tax-free ceiling should be treated while crediting interest to employees.
Dayanand brings in a salary of Rs 60,000 every month and manages to save Rs 16,130 of this amount. His household expenses come to Rs 12,600.
This outgo leaves them with a surplus of Rs 43,475, but before Maalde advises them on its usage, he wants to analyse their insurance portfolio.
The company has authorised Citizen Investment Trust (CIT) to manage the tasks relating to the share issue.
While the intent is right, the family usually doesn’t know where it is headed and whether the steps taken are adequate to help fulfil their financial goals.
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