PPF, a statutory scheme by the central government, started with the objective of providing old age income security to self-employed individuals and workers from unorganised sectors. While EPF is a retirement benefit applicable only for salaried employees. It is a fund to which both the employee and employer contribute 12 per cent of the former's basic salary amount each month. This percentage is pre-set by the government.
|PPF (Public Provident Fund)
|EPF (Employees' Provident Fund)
|PPF scheme was introduced by the Ministry of Finance in the year 1968.
|EPF scheme was introduced under the Employees Provident Funds and Miscellaneous Provisions Act 1952.
|Objective of PPF scheme is to providing old age income security to self-employed individuals and workers from unorganised sectors.
|EPF is a retirement benefit applicable only for salaried employees. It is a fund to which both the employee and employer contribute 12 per cent of the former's basic salary amount each month. This percentage is pre-set by the government.
|Current PPF interest rate is 7.1%.
|Current EPF interest rate is 8.5%.
|PPF investment gives you a full tax deduction under section 80C. Means there is no tax applicable on the maturity amount in this option. The tax deduction for these investments is of EEE category.
|EPF investment also qualifies for deduction under Section 80C. Withdrawal from an EPF amount is subject to tax if it is carried out within 5 years of employment with the same employer.
|From PPF account one can withdrawn total money only on maturity. Government announced relief to withdrawn money before maturity only for medical emergency and for child education.
|In EPF amount is paid at retirement or at resignation time. In case of job change amount can be transferred from old employer to new one.
|In PPF, one can avail loan from 3rd financial year up to 6th financial year.
|In EPF, one can withdrawn money for personal use by reason and document declaration.
|In PPF, only your investment will be counted.
|In EPF, your employer will contribute funds same as your's contribution. Contribution of both is 12% of basic salary. So it's double benefit in EPF.
|In PPF, account holder can't withdraw funds until it's maturity.
|An EPF holder can withdraw the amount for personal needs anytime by providing necessary documents.
|A PPF account can be opened by resident Indian individuals, salaried and non-salaried individuals.
|EPF is only for salaried individuals.
|Any earning person may open PPF account on behalf of his/her minor children and can make total contribution up to Rs. 1,50,000 per financial year.
|In EPF, there is no facility to open account on behalf of anyone.
|PPF interest rates are decided every quarter by Ministry of Finance.
|EPF Interest rates are decided by the Government every year.
|PPF holder can invest minimum Rs.500 and maximum is Rs.1,50,000.
|In EPF total 24% amount of basic salary will be deposited. 12% contribution from both employee and employer will be deposited.