Interest rate on EPF deposits for year 2015-16

  • 1 May 2016

EPF interest rate is hiked to 8.8% for the current fiscal year (2015-16) from 8.75% of the previous year.

As posted earlier, EPFO's advisory body, Finance Audit and Investment Committee (FAIC), had recommended 8.95% interest on PF deposits for 2015-16, which was supported by trade union leaders but the CBT (Central Board of Trustees, EPFO's apex decision-making body) at its meeting on February 16 decided to provide an interim interest rate of 8.8 per cent for the fiscal. The ministry of finance has, however, ratified an interest rate of 8.7%, citing market volatility and the global economic slowdown.

EPF Bonaza - Interest rates to be raised to 8.95%

  • 28 January 2016

EPFO has proposed to raise the interest rate on EPF deposits to 8.95 % for the current financial year 2015-16. The interest rate in the previous financial year was 8.75%.

The proposal is a bonaza to the working class, especially because it comes at a time when government is expected to lower the interest rates of many small saving schemes such as public provident fund, national savings certificate, etc. This rate increase will make EPF one of the best savings instrument far ahead of PPF, NSC and Fixed Deposits.

Sukanya Samriddhi Account in State Bank of India - Process and Documets

  • 6 June 2015

When I last visited SBI on 1st June, 2015, I came to know that they are opening the Sukanya Samriddhi Account. I noted down the details and applied for one. Here are the details for the same -

Sukanya Samriddhi Account Form and Documents required

You have to fill up this form and submit it in your nearest SBI branch -

Submit the following documents along with the form -

Renting a House in Bangalore - Standard Practices and Experiences

  • 9 November 2014

Renting a house in Bangalore has always been a complicated process because standard practices are quite different here as compared to other cities . Here are some observations based on my experiences -

  1. 10 months rent as advance - Owners demand a customary 10 months rent as advance which you need to pay before moving in the house. It is negotiable in some cases depending upon the owner's temperament. Some owners agree for a higher rent and lesser advance (eg. 6 months instead of 10) or vice versa. Please note that the advance money is refunded (after deducting the amount mentioned in point 2 ) when you leave the house.

EPF Contribution Increased From Rs 780 - Why?

  • 8 November 2014

Many of my friends have mentioned about their PF contribution changing from Rs 780 to Rs 1800 from September 2014 onwards (without any salary revision / increase) and have been wondering about the cause for this.

The increased EPF contribution is a result of EPFO decision to raise the PF wage ceiling to Rs 15,000 from Rs 6,500. The details can be found in my previous article. This decision took effect from September 1st, 2014 onwards. To understand it better, we need to know the usual pattern of EPF contributions

Employer EPS Contribution Increased from Rs 541 to Rs 1250

  • 7 November 2014

In Aug 2014, EPFO decided to raise the wage ceiling for becoming a subscriber of EPFO to Rs 15,000 from Rs 6,500. The details can be found in my previous article. This decision took effect from September 1st, 2014 onwards.

One fallout of the decision is that the EPS share which my company was contributing every month got raised from Rs 541 to Rs 1250. This change is reflected in my EPF passbook for the October entry (i.e. September contributions).

Online Insurance Renewal Problems: ICICI Lombard and HDFC Ergo

  • 6 November 2014

Insurance companies very well know the potential of the online channel for insurance registrations and renewals. Selling policies online helps them to make significant savings as they no longer need to pay commissions to the agents. That is the reason why all insurance products such as cars, 2 wheelers, health, travel, home, personal, life insurance, etc. are available to buy online.

Despite being aware of this online advantage, most of the insurance companies are lagging behind when it comes to being customer friendly. There is a good amount of improvement possible in current online setup of most insurance companies.

Understanding UAN SMS Update of Transaction in EPF Account

  • 4 November 2014

I received this sms from EPFO yesterday, "Dear member, Rs xxxxx for 10/2014 has been credited in your epf account".

It is a good initiative by EPFO to send a sms alert everytime a credit happens in the EPF account. This way its easier to keep a check on my EPF account transactions. Along with sending a monthly sms alert, EPFO is also updating the e-passbook monthly. You can go to UAN portal and view your latest transactions in your passbook. (Read my previous post to know how to do that)

UAN (Universal Account number) Launched for EPFO Subscribers

  • 18 October 2014

Much awaited UAN service has been launched by EPFO on 16 Oct, 2014. Many of you might have received a sms stating the same - "Congratulations on getting portability facility for EPF account. now you can operate your account without any intermediation. Narendra Modi."

To begin the effective delivery of services through UAN portal, EPFO has launched the UAN programme with the following services -

Tax Deduction on EPF Withdrawal

  • 1 October 2014

Readers on this blog have asked this question, times and again, "What are the tax implications on EPF withdrawal?" Since the responses to such questions are all hidden in comments, I decided to write a separate post on the same.

EPF Withdrawal After 5 years

If the total continuous service is more than 5 years (in one or more companies), the EPF is NOT taxable.