What does your provident fund do for you?

provident fund

Level - BASIC

Provident fund contributions enable us save and accumulate funds over the long term, and give us benefits such as loan facility and tax savings. Watch this video to appreciate why it is important to contribute regularly to a provident fund.

AUTHOR(S): Uma Shashikant

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Provident Fund

 Provident fund contributions enable us save and accumulate funds over the long term, and give us benefits such as loan facility and tax savings. Watch this video to appreciate why it is important to contribute regularly to a provident fund.

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    1.An employer has collected provident fund contribution from the employees and made its contribution. Where can it NOT park this money?



  • In a regular Mutual Fund
  • Managed centrally by the central board of trustees of EPFO
  • In a trust formed by the employer and managed as per the guidelines set by the government
  • 2.A person is self employed and wants to save for long term. Which of the following is available to him?



  • Public Provident Fund
  • Provident Fund
  • Voluntary Provident Fund
  • 3.Which of the following is NOT a benefit of Provident Fund



  • Tax benefits
  • Loan facility
  • Anytime withdrawal
  • 4.In a situation when you change your employer within 5 years of working, what should you do with your PF?



  • Withdraw all PF balances
  • Transfer the balances to the new employer
  • Leave it with the old employer and open a new one with new employer
  • 5.What percent of an employee's salary is kept aside in the provident fund as his contribution?



  • 12% of take home pay
  • 12% of the basic salary
  • 12% of the CTC
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