Hi,
I need clarifications regarding EPF and PPF.Thanks in advance.
1.Currently I contribute 12% of my basic for the EPF and Company contributes the equivalent amount for EPF.I understand the total contribution will be given a interest rate of 9.5 by Provident Fund Organisation for Financial year April 2010 – Mar 2011.
What are the advantages of contributing an additional percentage to the EPF ?.My Company has informed me they match only mandatory contribution ( 12% ).Will the addtional amounts contributed to EPF fetch the same interest rate ?.Will they be tax deductible for that financial year / Is there any limit for Income tax deduction for EPF Contribution ?.
2.I understand the maximum tax deductible contribution to PPF will be 70000 .What happens if I contribute more than this amount in a financial year ?.