Portfolio Management Of Exempted PF Trust In India

EPF is a savings scheme for the employees that they can use after their retirement. This EPF is a contribution collectively made by employee and employer every month.Employees contribute 12% of their basic salary to EPF. However in case of exempted entities, 8.67% from the 12% of the employer’s contribution is managed by EPFO. 

 

But, there are specific entities that are exempted from depositing Provident Fund with the Employee Provident Fund Organization (EPFO), they’re supposed to maintain their EPF portfolio in-house or with a private PF trust by strictly adhering to the rules and regulations of EPFO. 

We at LiquidTalk, manage the Employee Provident Fund (EPF) for various entities including the exempted entities. We offer end to end services for EPF including employee data management, provident fund portfolio management, pension services and more. 

 

The tax benefits are just the same, the way they are for any other employee enjoying the EPF benefits. Although there are other benefits that entities with exempted PF trust enjoy.

Benefits To The Employees With Exempted PF Trust

1. Online Assistance: Employees can easily apply online for loans, withdrawals, and grievance redressal.

2. Reduced Administration Charges: Unlike regular EPF members who pay 1.1% administration charges, employees of PF exempted entities only pay 0.18% resulting in considerable amount of savings over the time.

3. 24*7 Access: You have the benefit to get all the details about your EPF account online.

4. High Returns: In terms of regular EPF the return rate is fixed at a specific number. But in case of in-house or private PF trust, EPFO allows to declare a higher interest rate.

5. Efficient Service: EPFO services aren’t as efficient as an in-house or private PF trust, since the private trust only deals with specific accounts. EPFO services are comparatively slower and subsided. 

Withdrawing Money From Exempted PF Trust

The interest on private PF trusts is exempted from tax. Furthermore, if the employee withdraws before a 5 year service period is completed, the employer 's compensation and interest is taxable.

75% of the money can be withdrawn after the completion of 1 month of unemployment and the rest 25% after 2 months of unemployment. In case you switch companies and move from your existing PF exempted entity, there is an option to transfer the balance.

In any case we can help you manage your PF exempted portfolio with absolute ease and transparency.