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Commission is extra money you receive depending on how many items you've sold. (ex. cars or cell phones) But a bonus is an overall rewarding payment that doesn't reguard the amount of an item you've sold. A Commission is money paid to the employee as a percentage of a sale. A Bonus is money that can be given based on total sales, company profits or just as good will towards the employee from the company. You will need to include both, commission and bonus monies as income for tax purposes.
PF = Provident fund. (12% of employee's share & 13.61% of employer's share on basic) see the website "www.dateyvs.com" or "www.aceprocedures.com" it might help you.
EPF/ PF The Employee Provident Fund, or provident fund as it is normally referred to, is a retirement benefit scheme that is available to salaried employees. Under this scheme, a stipulated amount (currently 12%) is deducted from the employee's salary and contributed towards the fund. This amount is decided by the government. The employer also contributes an equal amount to the fund. However, an employee can contribute more than the stipulated amount if the scheme allows for it. So, let's say the employee decides 15% must be deducted towards the EPF. In this case, the employer is not obligated to pay any contribution over and above the amount as stipulated, which is 12%. PPF The Public Provident Fund has been established by the central government. You can voluntarily decide to open one. You need not be a salaried individual, you could be a consultant, a freelancer or even working on a contract basis. You can also open this account if you are not earning. Any individual can open a PPF account in any nationalised bank or its branches that handle PPF accounts. You can also open it at the head post office or certain select post offices. The minimum amount to be deposited in this account is Rs 500 per year. The maximum amount you can deposit every year is Rs 70,000. 2. What is the return on this investment? EPF: 8.5% per annum PPF: 8% per annum 3. How long is the money blocked? EPF The amount accumulated in the PF is paid at the time of retirement or resignation. Or, it can be transferred from one company to the other if one changes jobs.
During these five years. It can be extended for a period of five years after that. that is. The entire balance can be withdrawn on maturity. it is taxed.000 limit of Section 80C. but the PF has been transferred to the new employer. 4. the PF withdrawal is not taxed. On maturity. What is the tax impact? EPF The amount you invest is eligible for deduction under the Rs 1. The tenure of employment with the new employer is included in computing the total of five years.In case of the death of the employee. you can take a loan on your PF. after 15 years of the close of the financial year in which you opened the account. the accumulated balance is paid to the legal heir. If you have worked continuously for a period of five years. Save tax and get rich . you pay absolutely no tax.00. the withdrawal of PF is not taxed. you earn the rate of interest and can also make fresh deposits. the first loan can be taken during financial year 1999-2000 (the financial year is from April 1 to March 31). To find out the details. you will have to talk to your employer and then get in touch with the EPF office (your employer will help you out with this). But if your employment is terminated due to ill-health. PPF The amount you invest is eligible for deduction under the Rs 1. If you withdraw it before completion of five years.000 limit of Section 80C. if the account is opened during the financial year 1997-98. You can also make a premature withdrawal on the condition that you are withdrawing the money for your daughter's wedding (not son or not even yours) or you are buying a home.00. 5. If you have not worked for at least five years. PPF You can take a loan on the PPF from the third year of opening your account to the sixth year. So. What if you need the money? EPF If you urgently need the money. PPF The accumulated sum is repayable after 15 years. then too it is not taxed.
You are allowed to withdraw 50% of the balance at the end of the fourth year. Having said that. In the case of PF. There is no such contribution in case of PPF. For example. 1. It requires just Rs. Individuals may also open a PPF account on behalf of a minor child of whom he is the guardian. Scoring high on safety.is allowed. whether salaried or self employed. You can make withdrawals during any one year from the sixth year. if the account was opened in 1993-94 and the first withdrawal was made during 19992000. as per your convenience. In this case. The general post office too allows opening of a PPF account. or March 31. 100 to start a PPF account PPF accounts could be opened by individuals.com The best tax-saving funds 7 Must Know Facts about Public Provident Fund (PPF) 5 The key to wealth creation lies in the practise of saving regularly and systematically. to make them more profitable for you. The maximum that could be deposited is Rs. FileMyReturns. Deposits could be in either one go. the amount you can withdraw is limited to 50% of the balance as on March 31. Other nationalised banks which offer this service are Bank of India. PPF accounts have a minimum and maximum deposit limit A minimum deposit of Rs. PF scores over PPF in two aspects. with a minimum initial deposit of just Rs. the employer also contributes to the fund. 1996. 70. The better option? In both cases. Investment Yogi explains 7 must knows of a PPF. contributions get a deduction under Section 80C and the interest earned is tax free. 100. or in flexible instalments (in multiples of Rs. 2.50%) than interest on PPF (8%). Accounts could be opened at any branch of the State Bank of India (SBI) or branches of its associated banks. by virtue of it being government backed. 10). 1998. provided you do not exceed 12 instalments in one financial year. whichever is lower. partial withdrawal -.The loan amount will be up to a maximum of 25% of the balance in your account at the end of the first financial year. preceding the year in which the amount is withdrawn or the end of the preceding year whichever is lower. .000 in a financial year. You could vary the amount and the number of instalments. 500 must be made during one whole financial year. 1999. Central Bank of India and Bank of Baroda. The Public Provident Fund (or the PPF) is one such long-term investment option that would suit investors of all types. The rate of interest on PF is also marginally higher (currently 8. this wonderful option comes with tax benefits. If the account extended beyond 15 years.up to 60% of the balance you have at the end of the 15 year period -. loan options and a low maintenance cost. it will be March 31.
would lead to your account being discontinued. However. A second loan could be availed as long as you are within the 3rd and the 6th year. You could withdraw once a year. Interest calculation in PPF account The interest rate in your PPF account is calculated on the lowest balance between the fifth and the last day of the month. Failing to deposit the minimum requirement. However. or 50% of the balance at the end of the immediate preceding year. You could regularize the account again on paying the prescribed default fee along with subscription arrears. 4. subject to certain terms and conditions. whichever is lower. Inactive accounts or discontinued accounts are not eligible for loan. If you continue the account after 15 years. Need a Loan? Use your PPF You could take a loan on your PPF deposit. Pre-mature closure of a PPF account is permissible only in case of death. any amount can be withdrawn without restrictions. Such withdrawals. Up to a maximum of 25% of the balance at the end of 2nd immediately preceding year would be allowed as loan. Loans could be taken from the third year onwards till the sixth year. So to maximise your earnings. and only if the first one is fully repaid. 6. for any period in a block of 5 years. try making deposits between the 1 st and the 5th of the month. only one withdrawal is allowed per year. 7. Interest is compounded annually and credited on 31 st of March each year. Rate of interest charged on the loan would be 2% more than the PPF interest rate prevailing then. the entire maturity amount including the interest is non-taxable. Such withdrawals are to be repaid within 24 months. PPF deposits are exempt from wealth tax too. Interest would however continue to accrue. must not exceed. 50% of the balance at the end of the fourth year. The balance in the account will continue to earn interest at normal rate as admissible on PPF account till the account is closed. Also note that once you become eligible for withdrawals. Continuing PPF after the 15 year period PPF account holders have an option of extending their accounts after the 15 year tenure with or without further subscription. PPF offers multiple tax benefits Deposits in a PPF account qualify for a deduction under section 80C. 3. withdrawal up to 60 per cent of the balance at the beginning of each extended period (block of five years) is permitted. 5. in times of financial crises partial withdrawals are permitted subject to certain ceiling limits. with continued deposit. . Furthermore. Not only is the interest earned tax free. no loans would be permitted. In case the account is extended without contribution. Premature withdrawal from PPF The entire amount in your account could be withdrawn only on maturity. from the 7th year onwards.
The account can be opened in designated post offices.Google. A person can have only one account in his name. Paid for number of years served (5 year weight-age if served more than 20 years) Make half the number of years. Even in the name of a minor account can be opened. Gratuity is paid for that number of months salary + DA. A portion of your last drawn salary would be multiplied with the number of years of service and paid out to you when you leave an organization after years of service. What is provident fund and gratuity? In: Employee Provident Fund [Edit categories] Download Google Chromewww. may continue to subscribe to the fund till its maturity on a non-repatriation basis.comBuy. If a resident who subsequently becomes NRI during the currency of maturity period prescribed under Public Provident Fund Scheme.com/Q/What_is_provident_fund_and_gratuity#ixzz1wFxOpITV Public Provident Fund F (PPF) is a savings-cum-tax-saving instrument in India. State Bank of India branches and branches of some nationalised bank. ICICI Bank is the first private sector bank which has been authorized to open PPF account. Anybody who has served an organization for more than 5 years is eligible for Gratuity.Gratuiety Lump some money paid on retirement. Download Now! Open A Demat Accountwww. Read more: http://wiki. Non-resident Indians (NRIs) are not eligible to open an account under the Public Provident Fund Scheme. Hold & Sell Your Shares As & When You Like. Individuals and Hindu Undivided Families can open the PPF account.com/ChromeThe fast new browser by Google Fast and Free. Open a Demat A/C! Ads Answer: PF and Gratuity are two schemes designed to benefit the employees of the private sector. Gratuity is a scheme to motivate people to serve for longer durations with the same employer. . In PF a small portion of the employees salary is deducted and deposited with the government PF office and at the time of retirement it is paid as a lump sum to help the employee lead his life peacefully in spite of retirement and loss of monthly income. It also serves as a retirement-planning tool for many of those who do not have any structured pension plan covering them.answers.KotakSecurities.
Only if the amount does not exceed 50% of the balance at the end of the 4th preceding year. Every subscription shall be made in cash or through a crossed check or draft or postal order. and thereafter. (Compounded annually). less the amount of loan if any.Since 29/03/2010 however thro' a circular. along with the arrears of subscription of Rs 500 for each such year . it is notified that only the amounts which are actually cleared on or till 5th of the month are eligible for that month's interest.cheque deposited for clearing( if cleared eventually)up to 5th of the month was eligible for that month's interest. up to 25 per cent of the balance at the end of the preceding financial year. If the PPF account-holder fails to deposit the minimum Rs 500 in a given financial year. The tenure of the PPF account is 15 years. Loans and withdrawals are not allowed. either lumpsum. the account is considered as discontinued but the interest will continue to accrue and be paid at the end of the term. The interest charged on the loan is 1 per cent higher for the first 36 months. in favor of the accounts office. which can be further extended in blocks of 5 years each for any number of blocks. The credit to the PPF account is made on the date of presentation of the cheque and not on the date of its clearance. A withdrawal is permissible every year from the 7th financial year of the date of opening of the account. continuing with fresh subscription. can withdraw up to 60% of the balance to his credit at the commencement of each extended period in one or more installments but only once in a year. There is no tax on the amount withdrawn. The contribution to the account can vary from year to year.a.Till March 2010. This account can be revived on payment of a fee of Rs 50 for each year of default. Investments in a PPF account can be made in multiples of Rs 5. draft or postal order should be drawn at a bank or post office at that place. 6 per cent on the outstanding amount. Interest is calculated on the lowest balance between the close of the fifth day and the last day of every month. at the place at which that office is situated.8 % p.000 in any given year. it is possible to allocate the percentage of benefits to each nominee. Nomination facility is available. The extension can be with or without contribution. whichever is lower. or the year immediately preceding the year of the withdrawal. In case of any check. In the case of joint nominees. An account holder.Rate of Return on PPF is 8. or in installments (not exceeding 12 in a year and more than one deposit can be made in a month). A loan repayable in 36 months can be obtained in or after the 3rd year. This allows flexibility in savings. from a minimum of Rs 500 to a maximum of Rs 100. The withdrawal can be used to reinvest in the PPF account. A second loan can be obtained before the end of the 6th financial year if the first one is fully repaid.
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