During the COVID-19 crisis, you need a safe financial assistance scheme for your future.
When we all are facing the COVID-19 turmoil, all must be worried about their future. Investing now can ensure social security. As the COVID-19 crisis hit the financial market, it is the right time to invest in Small Savings Schemes. Small Saving Schemes are the best. It will benefit you and your loved ones. The Schemes that we will analyze in this blog are EPF, PPF, and Sukanya Samriddhi Scheme. Let us look into these schemes one by one and in different steps.
#1. Employee Provident Fund
The Employment Provident Fund (EPF) is the prerequisite given to workers by the Contractor after the payment. All the organizations that have 20 or more employees must have the mandatory EPF Registration. Such organizations are required to contribute a fixed amount towards Employee Provident Fund out of employee salary and wages.
- It is the scheme given to all salaried employees in India by the Government.
- Payment is regular of Fixed Interests.
Who is Eligible for EPF Registration?
Following Organizations are eligible for EPF Registration:
- Employers have 20 or more employees.
- Organizations that are in the lists issued by the Central Government of India for EPF.
Note: The employer who fails to get EPF registration or proclaims false facts to avoid EPF is liable to pay the penalty of INR 5000/-.
#2. Public Provident Fund
The Public Provident Fund (PPF) is one of the best senior citizen investment schemes. This is a 15-year financial assistance scheme.
- It offers Tax exemption during deposit, accrual of interest, and withdrawing of the amount.
- The account is eligible for opening on behalf of a minor.
- It also offers an interest rate of 7.1%.
- The least amount of INR 500 and the largest of 1.5 Lakh per annum is applicable for deposition.
- The excess amount will not earn any profits of the interest rate. Moreover, the tax exemption will not be applicable.
#3. Sukanya Samriddhi Scheme
Sukanya Samriddhi Scheme is one of the recently introduced financial inclusion schemes in India. It is dedicated only for the Girl Child.
- Girl children till 10 years of age are beneficiaries of this scheme.
- 7.6% interest rate. This is on the total value of the deposits.
- The least amount for depositing is only 250 INR. Afterwards, any amount can vary in the multiples of Rs. 100 is eligible for deposit.
- The deposits on proceeding the maturity amount are eligible for full tax exemption under 80C of Income Tax Act.
- The scheme allows Max of 1.5 lakhs for deposits.
- Till the account opening, 14 years are for an offering of deposits.
- The account will earn interests as per applicable rates after this duration.
- Upon attaining the age of 18, the account holder can also make one withdrawal. That allows her to meet education/marriage expenses.
- The transaction offers a rate of 50% of the balance according to the previous financial year’s credit.
No wonder the financial situations might get worse in the future due to Coronavirus Pandemic. Thus, you should think wisely and start investing in schemes mentioned above. These schemes are beneficial for your children. Also, Post Office Savings Account, National Savings Monthly Income (Account), National Savings Recurring Deposit can help you during the crisis. It would be best if you get ready to make the right decisions for the future ahead. And it is the best moment to invest. So start investing now and get yourself registered for these financial assistance schemes.
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