Complete Tax Solution

Employees put money every month into their EPF (12% of salary) and the company puts another 12%. This money saves tax under section 80C so it’s exempt at entry Then it accrues interest each year, but you pay no tax on that interest. (exempt on accrual) Then when you turn 58, you get all the money, tax free.  (exempt at exit)

Retirement benefits have assumed importance in the falling interest rate scenario. In India, there are two such schemes: Employees' Provident Fund (EPF) scheme and the National Pension Scheme (NPS). A recent proposal by the government to tax the final proceeds of EPF at the time of withdrawal caused a public furore. We try to understand the two schemes 1. What are the features of EPF and NPS?