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EPF vs PPF: Eligibility, Tax Benefits, Maturity And Other Key Details
- EPF (Employee Provident Fund) and PPF (Public Provident Fund) are popular long-term investment options for retirement savings in India.
- Both schemes are government-backed and offer safe and attractive returns, designed for retirement savings.
- EPF is for salaried employees managed by EPFO, while PPF is open to all Indian citizens and managed by the Government of India.
- Eligibility: Salaried employees in organisations with 20+ employees are eligible for EPF. PPF is open to all Indian citizens, including minors.
- Tax Benefits: Both EPF and PPF fall under the EEE category, offering tax deductions up to Rs 1.5 lakh/year under Section 80C of the Income Tax Act.
- EPF interest is tax-free after five years; PPF interest is tax-free throughout the tenure.
- Maturity: EPF lasts until retirement, while PPF has a 15-year maturity period, extendable in blocks of five years each.
- Contribution: EPF involves a 12% contribution from employees and employers, while PPF allows deposits between Rs 500 and Rs 1.5 lakh/year.
- Both EPF and PPF are valuable for financial security, catering to different needs based on eligibility and maturity.
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