Insolvency N Gst Professional
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From 1st June - 2015, EPFO will deduct TDS on PF Withdrawals, where accumulations are over Rs 30,000 and the employee has worked less than five years.
But the body will not deduct TDS where payment is less than Rs 30,000 but the member has rendered service of less than 5 years.
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Those who save in PF should allow the amount to grow,instead of withdrawing at time of job change.
This link for TOI makes good reading:
Employees should transfer their dormant PF accounts - The Times of India
Purpose is to bring more people into data base of tax payers.
If TDS is deducted and person will have to file income tax return to get refund if due
Also IT monitors cases where TDS is deducted and no IT return is filed subsequently by the concerned person.
PF accumulations should be let to remain to grow.
This is one investment where you get compound interest of 8.7 % and with tax benefits.
When you change jobs,always shift PF to new pf a/c.
But it is now better to apply for UAN.
refer this link for some info about UAN;Universal Account Number (UAN): How to Get, Benefits, Withdrawal - AllOnMoney
Most sensible advice. PF is a life saver; I am speaking from personal and experience of friends. It can be life saver even for "big earners". PF should be withdrawn only if a person is using the money towards purchase of a house.
I personally would go so far to say even if you are saving max in EPF,open a PPF a/c in SBI and start saving.

You get 8.7 % Interest in this year and all income is tax free.

Capital when drawn and interest is all tax free.Even if you do not get IT rebate it is a worthwhile investment.

Only thing is that investment is for 15 years.

Advantage with PPF is minimum contribution is Rs500 per year and as a planned saving what one can do is whenever you get some small sums of money -tour expenses claim etc round it off and deposit in PPF.

Slowly it will grow into tidy sum.

Most of the other investment are taxable.FD gives you say 9% but after tax it is like 6% lower than inflation itself.

Before one jumps into stock market all these fixed income savings must be tried out.

Even ELSS is a good investment-go for 5 star rated funds.

There are varied avenues of nearly risk free investments,so go ahead -diversify and invest from your first salary itself and hopefully you can retire with a good nest egg,taking future price increase/inflation in mind.

Health cover is another area where there is need of careful planning.

Cover yourself and family with adequate health cover as a normal routine.

Sufficient insurance cover for earning members is a wise investment.
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