PF - Provident Fund Calculator is an online investment return assessment tool to estimate the total provident fund return at the age of retirement. Current age, retirement age, current EPF balance, monthly basic pay, monthly dearness allowance, monthly EPF contribution in percentage and expected salary hike in percentage are the key components to calculate the total returns you will at the time of retirement.
The term Provident Fund is a fund provides a compulsory contribution for the future of an employee after his retirement or for his dependents in the event of his early death. In such fund employee and employer contribute equally. The PF contribution is 12% of Basic salary from both employee and employer. It is compulsory for any organization in which more than 20 employee working is to contribute in Provident fund.
Provident Fund comes under EPF - Employees' Provident Funds and Miscellaneous Provisions Act, 1952 and organaized by EPFO - Employees' Provident Fund Organisation which is a statutory body of the Government of India under Ministry of Labour and Employment. It administers a compulsory contributory Provident fund, pension and an insurance scheme for Indian Work force. In terms of Taxation, the employer contribution towards your PF will not be taxed from the employee. According to the Indian Income Tax Act under section 80 C, you can get the tax exemption for Provident Fund contribution up to 1 lakh. When it comes to online calculation, this Provident Fund Calculator is an essential tool to estimate the Total Provident Fund amount at the time of your retirement. Employee provident fund offers 8.5% interest, is a tax free interest income much higher than the other investment revenues. One could take a loan under certain conditions against employee provident fund.