Due to the negative return from government bonds, one-year return of NPS is significantly lower than EPF and PPF returns.
Ramesh Shahapurkar's goals include building a contingency corpus, buying a car, saving for the education and weddings of his children, and retirement.
Ranade, who is group chief economist of the company, shared his assessment of the Union Budget proposals in an interaction with ET’s Gayatri Nayak. Edited excerpts:
With more tax changes like EPF in this Budget, the investors should be prepared for any eventuality and be more active in their approach.
Payroll data is currently collated using information from firms registered under the EPFO and the Employees’ State Insurance Corp (ESIC).
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Here are three ways to link UAN to Aadhaar for faster PF claim settlement after you have activated your UAN.
The EPF rate cut will not make a perceptible dent in your retirement savings, though the impact will be different for new joinees and senior employees.
Expats from US, Netherlands and Sweden, with which India has not signed a social service agreement, could opt out of EPF. Cashing in on your money
Union Budget 2016 is a bitter-sweet pill for the common man. While incentivising the aam aadmi to buy homes, FM Arun Jaitley has made cars costlier.
At present the EPF Act has provisions that any factories or establishments having 20 or more employees have to contribute to the EPF.
The pro-worker move was approved by Central Board of Trustees during UPA's tenure, but it could not be implemented.
It is precisely in times of slowdown when interest rates are also falling that retaining the earlier interest rate makes poor economic sense.
The biggest downside of buying a pension plan is that the annuity returns are not comparable with tax-free bonds or even government bonds.
Trade unions urges FM Arun Jaitley to take immediate steps to mitigate difficulties being faced by wage earners and small trades due to the cash crunch led by demonetisation.
The body also talked about implementation of its earlier decision of providing higher pension to those subscribers deferring pension beyond the age of 58 years.
"We are in discussion with stakeholders. There are many stakeholders. Our government is considering all options," Bandaru Dattatreya said.
Central Provident Fund Commissioner Anil Swarup explains how two recent decisions of the Central Board of Trustees of the EPFO could boost the Provident Fund returns significantly.
Experts are expecting big tax cuts and other benefits from this year’s Budget. ET Wealth looks at the feasibility.
The pension from EPS is low because the contribution is also low. At present, employees don’t contribute towards EPS.
Under 'Taxes Paid & Verification' tab of ITR1, you are required to enter details of tax-exempt income, details of your bank account and fill the verification sub-section.
Ignoring or underestimating effects of inflation on expenses through the retirement period is one of the biggest risks to your retirement savings.
The Ministry is planning to construct 10,000 houses for beedi workers. The Centre is also planning to provide EPF, ESI to beedi workers.
The new policy has introduced, for the first time, a digital contract labour management system which will be a database of all contractual workers engaged in providing services to the railways.
From 2016, the interest rates on small savings are reset every quarter. This revision is in line with the movement in general interest rates.
Following on the lagged effect of demonetisation and imposition of GST, maintaining the nascent revival momentum was critical.
EPFO has trained its eyes on the construction sector and those using contract labour to bring more workers under the social security net.
Besides the enhanced limit of investment in equity, CBT may also discuss the relative powers of the central govt and board of trustees of the EPFO.
The video sends out the message that Modi govt has made the lives of middle-class men and women much easier than in the past when they used to be always uncertain.
Many new investors are investing more than Rs 1.5 lakh a year in Equity Linked Savings Schemes (ELSSs) these days.
If your gross total income is in the range of Rs 6-11 lakh, you could try and claim tax deductions to reduce it to Rs 5 lakh.
UAN offers easy portability of PF accounts between employers. It also allows members to view their EPF accounts with current and former employers.
As per the complaint, the accused did not deposit the amount, totally worth Rs 42.39 lakhs, in the PF accounts of their employees between April and September, 2016.
In recent months, several changes have been made in the NPS and the tax rules governing the scheme. Find out how these changes can impact you.
The rollback of the proposed amendment, which had the potential to bring 50 lakh workers under under the social security net, would, however, hit labour ministry.
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The uproar over increasing the age limit for withdrawal of PFs to 58 years is not justified. Withdrawal should only be allowed at retirement.
The package includes a slew of measures, which are labour friendly and would promote employment generation, economies of scale and boost exports
Compiling numbers from the two Form 16s is not enough. You will have to dig deeper. ET Wealth tells you how.
The official said the model Shop & Establishment Act is likely to come up for cabinet’s approval this week, after which three more bills could be taken up.
Anuj and Ruchi Sharma's goals include saving for emergencies, vacation, house, child’s education and wedding, and retirement.
Around 4.5 crore workers are expected to gain from the cos' asset management expertise on retirement savings. Formula for success
FinMin had earlier notified a new investment pattern for EPFO, allowing it to invest a minimum of 5% and up to 15% of its funds in equity-related schemes.
Responding to the poll 11% said they hired male employees only, while 46% said they hired mostly male and a few female employees. About 43% said they hired both.
Vickram and Rita's goals include saving for emergencies, kids’ higher education and their weddings, retirement, and a house.
Despite a long list of goals, the Bengaluru based couple will be able to achieve them given the size of goals and adequate time for investing.
The Govt made it clear that social security number is not mandatory for getting services from Employees Provident Fund Organisation as the present provident fund membership number will suffice.
The finance ministry has argued investing a portion of the Rs 5 lakh crore EPF corpus in stocks would help the fund generate higher returns.
The govt will provide production incentive through enhanced TUFS subsidy of additional 10% for Made-ups similar to what is provided to garments based on the additional production and employment after a period of 3 years.
"A product offering life insurance with a guaranteed return of 5% over 20-25 years is a decent deal," Anuj Mathur CEO, Canara HSBC OBC Life Insurance
Financial Planner Pankaaj Maalde suggests a plan for Mumbai-based Krishnan who works in the IT industry and lives with his wife and two kids.
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Government intends to facilitate at least 10 lakh subscribers in next two year by allowing them to use 90% of EPF accumulations to make down payments to buy houses.
The Labour Ministry will push as many as six bills for passage in the upcoming winter session of Parliament starting next week to bring in another wave of reforms.
Retirement fund body EPFO is probing the issue of non-compliance in provident fund (PF) contribution by Kingfisher Airlines relating to international workers.
Speaking at the International Labour Day function here, the minister said: "Employment generation is our priority and going forward will give a lot of focus on it."
Earlier this year, the Finance Ministry had decided to lower interest on PF deposits for 2015-16 to 8.7 per cent from the 8.8 per cent approved by the CBT.
The tortoise stays safe, while the hare takes risks. Find out who wins the race to retirement.
The meeting of the EPFO central board of trustees Wednesday endorsed one key decision: that of returning to the earlier practice of announcing the interest rate at the beginning of each financial year based on returns on investment in the previous year.
To help them increase their equity exposure, financial adviser Pankaaj Maalde has prepared a blueprint that they can follow.
Earlier this year, govt had rolled back its decision to lower interest rate on EPF deposits to 8.7% for 2015-16 and fixed it at 8.8%
The Employees' Provident Fund Organisation (EPFO) has put in place an online mechanism through which one can self-generate the UAN.
Lekhya and Sapan Gupta’s goals include saving for emergencies, child’s education and wedding, retirement, vacation and buying another house.
Abhishek and Niharika Srivastava's goals include saving for emergencies, a house, future child’s education and wedding, and retirement.
The labour ministry has agreed to significantly enhance insurance benefits under the EDLI Scheme of the retirement fund body EPFO.
The labour ministry has hiked the EPF rate to 9.5%, but a finance ministry notification says that anything in excess of 8.5% will be taxed.
They said the government spent crores of rupees on demonetisation which could not give the desired results like checking terrorism and reducing black money.
Throughout the world, governments are looking to spread the responsibility of meeting the post-retirement financial needs of workers.
EPFO subscribers can now withdraw 90% of their PF accumulations to make down payments to buy houses. Here's the low-down on how to go about it.
The Employees Provident Fund scheme is being reviewed to assess how better benefits could be provided to employees and two committees have been set up for the purpose, government told the Lok Sabha on Thursday.
The product design could also be improved. Subscribers are reluctant to lock in their savings into a product that forces them to buy a low-yield annuity.
4.4 crore subscribers of the Employees Provident Fund (EPF) will receive a payout of 8.5% interest rate for fiscal 2009, the third year in a row.
While the 40% withdrawable amount was taxable for national pension system (NPS), the 33% withdrawable amount was tax free for insurance based pension plans.
Whereas the EPFO commands a corpus of Rs 3 lakh crore, other provident funds, which follow the Fund's investment pattern, have another Rs 2 lakh crore.
Tax-saving season is here. ELSS or tax planning mutual funds are one of the best way to save taxes under Section 80C of the Income Tax Act.
EPFO data shows 3.1 million new additions across age groups over the six months to February, of which those in the 18-25 age group amount to 1.85 million.
It is crucial for investors to make financially responsible decisions early in life.
The app can be downloaded from the EPFO (EPF Organisation) website, it added.
Currently, if the employee wants to correct basic details against the UAN, both the employee and the employer needs to give a joint request to the EPFO.
Most people invest in life insurance policies, PPF, ELSS in order to avail this deduction, but there are other options too worth considering.
Retirement fund body EPFO has settled over 76 lakh claims till November in this fiscal, of which more than 40 per cent were settled within 3 days.
However, like in the case of textiles, these workmen will be treated at par with permanent workmen in terms of working hours, wages, allowances and other statutory dues.
The Employees' Provident Funds and Miscellaneous Provisions (EPF and MP) Act, 1952, is applicable to every establishment employing 20 or more, which is engaged in any industry specified under the law.
However, it has constituted a squad of enforcement officers for verifying compliance in respect of all its employees as payment of contributions stopped after September 2015.
The Budget might have made NPS attractive, but financial experts say that one should not get swayed by tax benefits or better returns alone.
“There is no complaint available on record either from members/Union regarding non-payment of EPF dues by the company,” ministry said.
As per the consolidated annual accounts of the EPFO, till March 31, 2016, Rs 9,737.46 crore are available to be credited to the subscribers' account, said Bandaru Dattatreya.
It will give salaried employees a choice in determining how their salaries should be used or paid out.
UAN provides automatic portability of PF account on change of employment if the employee has activated his UAN by seeding his KYC details through the employer.
Government proposes to pay 8.33 per cent for all new employees for first three years of employment. A total of Rs 1,000 crore has been allocated towards it.
They include Child Labour (Prohibition & Regulation) Amendment Bill, 2012 and Payment of Bonus (Amendment) Bill, 2015.
Amid pressure by Left-backed trade unions not to tinker with the current 8.5 per cent interest rate on Employees Provident Fund, the government today said it will try to retain the rate for the four crore EPF subscribers in the country.
Congress vicepresident Rahul Gandhi on Saturday accused PM Narendra Modi of promoting the interest of a few select industrialists and “those with black money”.
Retirement fund body EPFO has settled 99.20 lakh claims including PF withdrawals till January this fiscal out of which 96 per cent were settled within stipulated 20 days.
Even with tax saving of Rs 50,000, there are certain disadvantages of NPS that are ignored by investors such as lock in, compulsory contribution, and so on.
The EPF board is likely to retain 8.5 per cent interest on provident fund deposits of 4.71 crore subscribers for 2010-11.
In five to seven years, it will become obvious that NPS returns are much higher than EPF and the service standard and convenience are much higher.
EPFO has firmed up a housing scheme for its subscribers so that they make down payment and pay EMIs from their EPF accounts to buy homes.
The accepted view now is that the benefit one gets in retirement depends on the amount one contributes and the return earned on that contribution.
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