PF interest calculation query

POSTED BY shinoj ON March 23, 2014 9:40 am ONE COMMENT

I have few queries regarding PF.

1. I heard that the PF interest is calculated and compounded monthly. But when I check my PF e-statement from EPFO site, I am not able to see this. Can somebody explain.

2. the same question with respect to PPF.

3. If I change job and transfer the PF to the new company, will the service period also will be transferred (Query Related to 5 year period for Tax benefits)

4. Is it possible to invest some money to my PF account other than whatever is cutting from my salary. I know that I can increase my contribution, but that will happen on a monthly basis. My question is whether I can put money whenever I get some extra cash.

Thanks in Advance,
Shinoj Jose
Bangalore

One reply on this article “PF interest calculation query”

  1. ashalanshu says:

    Dear shinoj, I’m trying to answer your query.

    1. I heard that the PF interest is calculated and compounded monthly. But when I check my PF e-statement from EPFO site, I am not able to see this. Can somebody explain.
    Interest calculation is yly compounding but interest is credited on mly basis.

    2. the same question with respect to PPF.
    Yly compounding and yly credit of interest.

    3. If I change job and transfer the PF to the new company, will the service period also will be transferred (Query Related to 5 year period for Tax benefits)
    Yes, combined service period ‘ll be considered in case of PF amount transfer.

    4. Is it possible to invest some money to my PF account other than whatever is cutting from my salary. I know that I can increase my contribution, but that will happen on a monthly basis. My question is whether I can put money whenever I get some extra cash.
    No. You can not invest other than your salary (either normal or VPF).

    Thanks

    Ashal

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