Financial Advisory

  The Public Provident Fund (PPF) is a widely recognized investment instrument in India, offering a tax-efficient option for individuals looking for long-term financial stability. One of the most compelling features of PPF is its tax-free interest income. The PPF interest rate, usually determined by the Indian government and subject to revision quarterly, plays a pivotal role in the wealth generation potential of the fund. As per prevailing rates (October 2023), the PPF offers an attractive 7.1% annual return, compounded yearly. Unlike other interest-yielding instruments, the income accrued from PPF contributions qualifies for complete tax exemption under Section 10(11) of the Income Tax Act. For example, if an individual contributes the maximum allowed amount of ₹1,50,000 to a PPF account annually, the interest earned in 15 years could amount to approximately ₹4,200 in the first year. Compounded annually, this could accumulate a tax-free maturity value of around ₹40 lakh at the en...

  The Universal Account Number (UAN) serves as a unique identifier for Indian employees across multiple Employee Provident Fund (EPF) accounts. If you wish to reset or change your UAN password, follow these steps carefully using the UAN Login facility: Steps for UAN Password Change: 1. Visit the UAN Portal : Open the official EPFO UAN Member Portal 2. Access UAN Login : Enter your UAN (as provided by your employer) and your current password on the login page. Enter the CAPTCHA code as displayed and click on the "Sign In" button. 3. Navigate to Change Password Option : After successful login, navigate to the "Account Settings" tab located in the header menu and select "Change Password." 4. Enter Old and New Password : Provide your current password in the "Old Password" field. Then, type your desired password in the "New Password" and "Confirm New Password" sections. Follow EPFO's password policy, which mandates a mix of upp...

  Recurring Deposit (RD) schemes offered by post offices in India are considered an effective medium of small savings. The attractive post office RD interest rate , compounded quarterly, ensures secure and consistent returns. In October 2023, the interest rate on the post office RD stood at 6.5% per annum, making it a viable option for individuals seeking risk-free financial growth. Post Office RD offers a standardized tenure of 5 years (60 months). Contributors can deposit a minimum of ₹100 per month, with no cap on the upper limit. Based on the prevailing post office rd interest rate , let’s analyze the returns over this 5-year period. Assume an individual deposits ₹10,000 monthly : - Monthly Deposit: ₹10,000 - Annual Interest Rate: 6.5% (compounded quarterly) - Tenure: 5 Years Using the formula for compound interest on recurring deposits: Maturity Value = [P × (1 + r/n)^(nt)] - P Where: - P = Monthly Deposit - r = Annual Interest Rate (in decimal) = 0.065 - n = Number of compoun...

The recent announcement of the EPFO Minimum Pension Hike brings welcome relief to pensioners under the Employees’ Pension Scheme (EPS). With rising inflation and living costs, an increase in pension benefits is crucial to safeguard the financial wellbeing of retired employees. The hike means enhanced payouts for EPS members, helping them maintain a better quality of life. For pensioners planning their post-retirement finances, understanding the full impact of this hike alongside navigating processes like Form 10c in EPFO is vital. Overview of EPFO minimum pension hike The Employees’ Provident Fund Organisation (EPFO) has increased the minimum monthly pension under the EPS from Rs. 1,000 to Rs. 1,500. This 50% rise is aimed at providing greater financial support to members who have contributed to the pension scheme during their employment. The move aligns with the government’s focus on enhancing social security for senior citizens and low-income retired employees. This hike directly i...

  The Employees’ Provident Fund (EPF) is a crucial component of financial security for salaried employees in India. Maintaining up-to-date information like your mobile number linked to your EPF account is essential for seamless communication and transaction alerts. The process of EPF mobile number change can now be conveniently completed online via the e-KYC portal, eliminating the need for physical visits to EPFO offices. This article provides a detailed walkthrough on how to update your mobile number linked to your PF number using the e-KYC portal, ensuring uninterrupted access to your account and prompt notifications. Essentials to update EPF mobile number using e-KYC portal Before initiating the process, ensure you have the following on hand: - Your Universal Account Number (UAN) linked to your PF number - Aadhaar linked mobile number for e-KYC verification - Valid identification documents if requested by the portal - Active internet connection and a secure device e-KYC verif...

  The Universal Account Number (UAN) has revolutionised the Employees’ Provident Fund (EPF) landscape in India by enabling a seamless, digital approach to managing retirement savings. UAN activation online is a crucial step in leveraging the full potential of PF services. It serves as the primary gateway allowing employees to access and control their PF accounts instantly. In addition, understanding how to add KYC in EPFO is integral to making the most of digital PF services.  Understanding UAN activation online and its importance UAN is a unique 12-digit number allotted to every employee contributing to the EPF scheme. Activating the UAN online is more than just a formality. It is essential for: - Tracking your PF balance and contributions effortlessly. - Requesting online withdrawals and transfers, eliminating tedious paperwork. - Receiving timely notifications on monthly deposits made by your employer. - Accessing detailed PF passbooks and annual statements for transparen...

  Senior citizens in India often prefer fixed deposits (FDs) as a safe and steady investment option to secure their retirement corpus. Among the various FD schemes available, senior citizen fixed deposit rates hold particular importance, offering higher returns than regular FDs to reward the risk-averse and retired population. Understanding what determines eligibility for these preferential rates is vital for investors aiming to maximise their interest income, especially if they are looking for feasible options to earn 10 lakh FD interest per month . Age criteria for senior citizen fixed deposit rates The primary determinant of eligibility for senior citizen fixed deposit rates is age. To qualify for these rates: - The depositor must be 60 years or older at the time of FD account opening. - Some financial institutions may extend the benefit to very senior citizens, typically those above 65, with even higher rates. - Proof of age, such as a PAN card, Aadhaar card, or senior citize...

  The Universal Account Number (UAN) is an essential element of the employee provident fund (EPF) system in India. It serves as a unique identifier for EPF members and streamlines the management of their provident fund accounts. However, many employees often wonder if it is possible to generate UAN number without employer involvement. In this article, we explore how the UAN is generated, the role of the employer, and the options available for employees to access their EPF accounts independently. Can you generate UAN number without employer involvement Typically, the generation of the UAN number is the responsibility of the employer. When a new employee joins a company, the employer registers their details with the Employees' Provident Fund Organisation (EPFO) and obtains a UAN. Therefore, without an employer, an individual cannot directly generate a UAN number. However, certain exceptions apply: - For those who have changed jobs: If you had a UAN with a previous employer, that nu...

Investing in Sukanya Samriddhi Yojana (SSY) is a popular choice for securing a girl child’s future in India. Understanding how the maturity value fluctuates with varying deposit amounts is essential for making informed decisions. The SSY Calculator is a useful tool that helps investors project returns, factoring in the current Sukanya Samriddhi Yojana interest rate . This allows parents and guardians to estimate the corpus they will receive at maturity, enhancing financial planning for their daughter’s education or marriage.  Working of the SSY calculator An SSY calculator requires inputs such as the deposit amount, duration of investment (which typically varies from 15 to 21 years), and the applicable Sukanya Samriddhi Yojana interest rate. It then calculates the future maturity value by compounding the interest annually on the amounts deposited. By tweaking the monthly or yearly deposit amounts, investors can see how it impacts the total corpus on maturity, helping in better pl...

  The Post Office Time Deposit Scheme is a popular saving instrument among Indian savers, offering a safe avenue with attractive interest rates and flexible tenure options. Many individuals consider opening joint accounts under this scheme to facilitate easy management and seamless succession of funds. Understanding the joint account rules under the Post Office Time Deposit Scheme is crucial for investors to leverage its benefits optimally. Additionally, being aware of the post office fixed deposit interest rate helps in making informed investment decisions, especially when compared to other reliable options like the Bajaj Finance FD . Eligibility criteria for opening a joint account Under the Post Office Time Deposit Scheme , joint accounts can be opened by individuals with the following guidelines: - The account can have up to three joint holders. - At least one investor must be an adult, i.e., above 18 years. - Joint account holders can be family members or others, but all mus...

  The employee pension scheme (EPS) is a crucial social security benefit offered to employees across India, ensuring financial stability post-retirement. It provides a regular pension after the employee attains a certain age or under specified conditions. Additionally, the introduction of the unified pension scheme has brought greater clarity and uniformity in pension benefits across different employment sectors. Understanding the withdrawal rules under these schemes is vital for planning your retirement well. When can you claim pension under employee pension scheme You are eligible to claim the pension under Employee Pension Scheme only after fulfilling specific conditions: - Attained the age of 58 years (can be deferred up to 65 years for higher pension accumulation). - Have completed at least 10 years of eligible service in the EPS. - In case of early exit before 10 years of service, you can withdraw the contributions but will not be entitled to a monthly pension. Employees c...