What are EPF and PPF?
EPF (Employee Provident Fund) and PPF (Public Provident Fund) are sovereign-backed long-term retirement and savings schemes in India operating under the EEE (Exempt-Exempt-Exempt) tax status.
Comparison
- EPF: Mandatory for salaried employees in registered firms. 12% of basic salary is contributed by employee and employer. Governed by EPFO.
- PPF: Open to all Indian citizens (salaried, self-employed, freelancers). Minimum deposit ₹500/year up to ₹1.5 Lakh/year. 15-year lock-in period with guaranteed government-announced interest rates.
Tax Benefit
Contributions qualify for deduction under Section 80C, interest accrued is tax-free, and final maturity withdrawal is completely exempt from income tax.