All you wanted to know about EPF and PPF

1. What is the difference between EPF and PPF?

Where Employees Provident Fund (EPF) serves all salaried employees, the Public Provident Fund (PPF) serves everyone - the employed, the unemployed, even children and housewives.

The access to the fund is also quite easy as any post office and some State Bank of India branches can help you open the fund. The purpose of a provident fund is to provide individuals some form of savings for their retirement years. Naturally, the EPF and PPF are for long-term savings.

2. What kind of income can one expect from PPF?

The returns from the fund are in the form of interest paid. The interest rate currently is 8 per cent compounded annually.The interest, however, is not paid out but is compounded (like a bank recurring deposit) till the maturity or withdrawal.With the current levels of inflation, real and stated, the returns from the PPF fund could be low. This is a typical asset-class mismatch.

3. Is there any capital appreciation?

Being a typical debt investment, there is no capital appreciation for the investment.

4. What is the risk involved with this investment?

There is hardly any risk for the capital or the returns from the PPF deposit.The risk, however, is with inflation, which could possibly reduce the value of the returns in the long-term, and the other disadvantage is the long lock-in period of 15 years.

5. How about liquidity of the investment?

PPF gives very little liquidity, too. The fund, as mentioned earlier, is for a minimum of 15 years. This can be extended for a further period of 5 years each, indefinitely.

The liquidity is in the form of withdrawals, which can be made from the fund from 7-year onwards. The withdrawal value is, however, limited to a maximum of 50 per cent of the average of the last 3 years' fund values.

After 7 years, one withdrawal can be made every year, based on the same condition.

6. What happens in the case of the death of the account holder?

In case of death of the account holder before the maturity of the account, the fund will be paid to the nominee/ legal heir.

7. How is PPF treated for tax?

This is where the PPF scores very high. Currently, The PPF comes under the Exempt- Exempt- Exempt category. This means that the amount invested gets tax benefits, the interest is not taxed and this applies for the final maturity amount as well. The investment gets benefits under Section 80C of the IT Act. The investment, however, is limited to a maximum of Rs 70,000 per year per person. This limit of Rs 70,000 includes the deposits made in the name of any dependent children.

8. Are there any other specific benefits that I need to know?

Some other unique benefits from the fund are:

1. There is no wealth tax on the value of the fund.

2. In case of insolvency, the money in the fund will not be attached to the assets. So, only this investment is truly ours, come what may. (Except for education in a philosophical sense).

This feature can be very useful particularly for business people in high-risk industries / businesses. The fund cannot help anyone if there is tax evasion though.

9. How does it score on convenience?

The fund scores high on convenience. As a savings tool, it is incomparable in terms of the flexibility of payment and quantum. You can make up to 12 contributions per year.

Each contribution can be as low as Rs 100 subject to a minimum of only Rs 500 per year.

There has to be at least one contribution per year. In case no payment is done for a whole year, there is a charge of Rs 50 when the next investment is made.

The objective is to make savings as comfortable and convenient for the minimum possible investment.

A minor disadvantage is that the fund is yet to go online. So, we have to carry our passbook and also face a queue to make the payment every time.

In conclusion:

PPF is a typical savings tool but one has to invest for the long term. This means there is an asset-class mismatch.

But, on the convenience side, the fund scores pretty high for the flexibility that it offers.

There are additional unique advantages in the form of wealth tax and insolvency benefits from the Public Provident Fund.

On the flip side, the long-term (minimum 15 years) of the plan is a limitation.

PERSONALISED STAMPS FROM INDIA POST - MY STAMP

Now your Face also on Stamps !! Department of Post to launch Customized stamps. Next time when you post an envelop, you can have a portrait of yours struck on the place of stamp !!. This is a new scheme named as "My Stamp" which will be introduced in the World Philatelic Exhibition - Indipex 2011 to be held at New Delhi next week. The stamp will have two parts-the currency part and the photograph-detachable from each other. If the experiment with individual consumers is successful, Indian companies may also be allowed to carry their own logos and postage stationery in future, the spokeswoman added.
Thus Infosys, Wipro or Reliance may have its logo embedded in postage stationery, which can be personalised when a company achieves a certain milestone, as well. These milestones can be a large deal, a new CEO, an international listing or a big acquisition, which the company would like to be highlighted to its key audience.For now, personalised postage is allowed only for individual citizens. One can also bring one's own or spouse's photo with an ID card, to have it converted into a personalised stamp.
My Stamp Features*

Will be Introduced in World Philatelic Exhibition which is to be held in Delhi Next Week.*

You can your Face on the stamp.*

Currently applicable to Individuals only.*

Customer has to bring one's own or spouse's photo with an ID Card.*

Rs 150 for 8 stamp sheets.*

Stamp Background in 6 themes.*

Themes include Taj Mahal, Tale of Pancha Tantra, Trains, Wildlife, Aeroplanes and Sun Signs.* Initially available in selected Post offices only.

"'My Stamp' is a wonderful way to celebrate special occasions such as engagements, birth of a baby, or to send as greetings to loved ones,"

RURAL POST OFFICES MAY SET UP ATMs-

NEW DELHI: The government may allow post offices to set up automated teller machines, or ATMs , at rural areas, in an attempt to further strengthen the role of India Post in financial inclusion.

India Post, which is working on major improvements in the payment process for social sector schemes like NREGA, will set up ATM networks in selected areas to give people access to online banking services.

"Central, state and local governments are increasingly preferring government benefit payments to be routed through banks rather than using postal services. We need to innovate so as to continue to play dominant role in financial inclusion," said a senior official with ministry of communications and information technology.

According to the official, the move to provide ATM services to its account holders will put them on a par with banks and other financial institutions working in this space and further strengthen their case for a banking licence.

Earlier, a committee on micro finance and poverty alleviation working under the aegis of Planning Commission had also suggested setting up of Gramtells (rural ATMs) at Post Offices. At present, only 45% of the Indian population has access to basic banking services. The Postal Department, with its 1.55 lakh branches, already offers a host of financial services such as life insurance.

"We are working towards convergence of the reach of Postal Offices with the government's financial inclusion agenda," said the official. The plan for integration between different arms of the government on financial inclusion was also discussed in a meeting of the Committee of Secretaries, held last week.

"Various mechanisms have been proposed (for convergence) and are being discussed," confirmed a finance ministry official. The government is looking at opening five crore accounts in the selected 73,000 villages having a population of up to 2000, by March 2012.
The Economic Times

ಎಚ್ಚರ! ಯಾರೋ ಮಾಡಿದ್ದು -ಯಾರಿಗೋ ಉರುಳು

ಇತ್ತೀಚಿಗೆ ಅಂದರೆ ೧೯.೦೧.೨೦೧೧ ರಂದು ಗಾಜಿಯಾಬಾದ್ ನಲ್ಲಿ ಇಲಾಖೆಯ ಹಿರಿಯ ಅಧಿಕಾರಿಗಳ ತರಬೇತಿ ಶಿಬಿರದಲ್ಲಿ ಮಾತನಾಡುತ್ತ ನಮ್ಮ ಸಂಘದ ಪ್ರಧಾನ ಕಾರ್ಯದರ್ಶಿಗಳಾದ ಕಾಂಕೆ.ವಿ. ಶ್ರೀಧರನ್ - ಮ್ಯುಚುಯಲ್ ಫಂಡ್ ಗಳ ವ್ಯಾಪಾರದಲ್ಲಿ ಇಲಾಖೆಯ ಘನತೆಗೆ ಮುಕ್ಕು ಬಂದಿದೆ. ಜನರು ನಮ್ಮ ಇಲಾಖೆಯ ಮೇಲಿರಿಸಿದ ವಿಶ್ವಾಸವನ್ನು ದುರುಪಯೋಗವಾದಂತಾಗಿದೆ ಎಂದಿದ್ದರು. ಅದರ ಬೆನ್ನಿಗೆ ಆಘಾತಕಾರಿಯಾದ ಸುದ್ದಿಯೊಂದು ಬಂದಿದೆ.

ಕೋಲಾರ ಜಿಲ್ಲೆಯ ಚಿಕ್ಕಬಳ್ಳಾಪುರ ಸಬ್ ಡಿವಿಜನ್ನಿನ ನಂದಿ ಅಂಚೆ ಕಚೇರಿಯ ಚಿತ್ತೆನಹಳ್ಳಿ ಬಿ ಓ ವ್ಯಾಪ್ತಿಯಲ್ಲಿ ಸ್ಥಳೀಯ ಹಳ್ಳಿಯ ಜನರು ಆಗಿನ ವಿಭಾಗಿಯ ಆಡಳಿತವು ಹೇಳಿದಂತೆ ಯು, ಟಿ,ಐ ಅಡ್ವ೦ಟೆಜ ಫಂಡ್ ನಲ್ಲಿ ತೊಡಗಿಸಿದ ಹಣವು ಮೂರು ವರ್ಷಗಳಲ್ಲಿ ಎರಡು ಪಟ್ಟು ಹೆಚ್ಚ್ಚಾಗಿಲ್ಲವೆಂದು ದೂರಿ ಮೇಲ ಓವರ್ಸೀರ್, ಹಾಗು ಅಂಚೆ ನೀರಿಕ್ಷಕರನ್ನು ಘೆರಾವ್ ಮಾಡಿ ಹಿಡಿದಿತ್ತುಕೊಂಡಿದ್ದರು. ಪ್ರಸ್ತುತ ವಿಭಾಗೀಯ ಆಡಳಿತವು ಇವರ ಬಿಡುಗಡೆಗೆ ಯಾವುದೇ ಆಸಕ್ತಿಯನ್ನು ತೋರಲಿಲ್ಲವಂತೆ.

ನಂತರದಲ್ಲಿ ಅಂಚೆ ನಿರೀಕ್ಷಕರ ವಲಯ ಕಾರ್ಯದರ್ಶಿ ಶ್ರೀ ನವೀನ ಚಂದ್ರ ಮತ್ತು ಡಿಪಿಎಸ್ ಶ್ರೀ ಶರವಣನ್ ರವರು ಚಿಕ್ಕಬಳ್ಳಾಪುರ ಅಂಚೆ ನಿರೀಕ್ಷಿಕರೊಂದಿಗೆ ಮಾತನಾಡಿ ನಂತರ ಪೋಲಿಸ್ ಅಧಿಕಾರಿಗಳ ಮಧ್ಯ ಪ್ರವೇಶದ ನಂತರ ಅವರುಗಳನ್ನು ಬಿಡಿಸಲಾಯಿತಂತೆ. ಇಂದು ಚಿಕ್ಕಬಳ್ಳಾಪುರದಲ್ಲಿ ಆದದ್ದು ನಾಳೆ ಎಲ್ಲಾ ಕಡೆಯೂ ಆಗಬಹುದು. ನೌಕರ ಬಂದುಗಳೇ ಎಚ್ಚರ! ಯಾರೋ ಮಾಡಿದ್ದು ಯಾರಿಗೋ ಉರಳು

• Inflation impact: Govt may hike tax exemption limit

Tax payers can expect some relief from high inflation in Budget 2011-12 as the government may raise the income tax exemption limit for individuals."Finance Minister Pranab Mukherjee is alive to the price situation and its impact on the common man," sources said, adding he would favourably consider the issue of hiking tax exemption limit.Moreover, they said, as the government is committed to raise the income tax exemption limit from Rs 1.6 lakh per annum to Rs 2 lakh in line with the Direct Taxes Code (DTC) in 2012-13, tax payers could expect at least some relief in the upcoming Budget on February 28."The finance ministry would keep in mind the high inflation in the Budget. Since there is no dearness allowance for a vast section of the society, hike in income tax exemption limit is likely," a source told PTI.

ನಿಮಗೊಂದು ಸುವರ್ಣಾವಕಾಶ !

ನಿಮ್ಮ ಮನೆಯಲ್ಲಿ ನಿಮ್ಮ ಮಕ್ಕಳು ಎಸ್, ಎಸ್, ಎಲ್,ಸಿ / ಪಿ, ಯು, ಸಿ ಅಥವಾ ಯಾವುದಾದರು ಸ್ಪರ್ಧಾತ್ಮಕ ಪರೀಕ್ಷೆ ಕಟ್ಟಿದ್ದಾರೆಯೇ ?

ಓದಲು ಅವರಿಗೆ ಏಕಾಗ್ರತೆ ಉಂಟಾಗುತ್ತಿಲ್ಲವೇ ? ಅವರು ಹೆಚ್ಚಿನ ಅಂಕ ಪಡೆಯಲು ಕಷ್ಟ ಪಡುತ್ತಾರೆಯೇ?

ಇವರ ಸಮಸ್ಯೆಗೆ ಇಲ್ಲೊಂದು ಪರಿಹಾರವಿದೆ.

ತಜ್ಞರೊಬ್ಬರು ಇದಕ್ಕಾಗಿ ಪರಿಹಾರ ನೀಡಲಿದ್ದಾರೆ.

ನೀವು ಮಾಡಬೇಕಾದ್ದಿಷ್ಟೇ.

ದಿನಾಂಕ ೦೬.೦೨.೨೦೧೧ರನ್ದು ಶಿವಮೊಗ್ಗ ನಗರದ ಡಿ. ವಿ.ಎಸ್ ಆರ್ಟ್ಸ್ ಮತ್ತು ಸೈನ್ಸ್ ಕಾಲೇಜಿನ ಸಿಂಗಾರ ಸಭಾಂಗಣಕ್ಕೆ ಬೆಳಿಗ್ಗೆ ೧೦.೦೦ ಘಂಟೆಗೆ ನಿಮ್ಮ ಮಕ್ಕಳನ್ನು ಕರೆತನ್ನಿ.

ಅಂಚೆ ನೌಕರರ ಮಕ್ಕಳಿಗೆಂದೇ ಈ ವಿಶೇಷ ಕಾರ್ಯಕ್ರಮ ಹಮ್ಮಿಕೊಳ್ಳಲಾಗಿದೆ. ಮಕ್ಕಳು ತಮ್ಮ ಸಹಪಾಟಿಗಳನ್ನೂ ಕರೆತರಬಹುದು.

ಬನ್ನಿ , ಈ ಅಪೂರ್ವ ಅವಕಾಶವನ್ನು ಸದುಪಯೋಗ ಪಡೆದುಕೊಳ್ಳಿ.

ಅಖಿಲ ಭಾರತ ಅಂಚೆ ನೌಕರರ ಸಂಘಗಳು,

ಶಿವಮೊಗ್ಗ ವಿಭಾಗ, ಶಿವಮೊಗ್ಗ

LIVING ON THE TOP FLOOR? GET YOURSELF AN INBOX

BANGALORE: The postman, an integral part of urban life, is having to keep pace with Bangalore's vertical growth. Their daily grind has changed from miles to go, to climbing up and down apartment blocks to deliver the day's cargo. While a few may term it an occupational hazard, the postman's humble requests for mailboxes on the ground floor have gone unheard.
Anticipating such a situation in 1989, the postal department had issued a circular saying an appeal be made to residents of multi-storeyed buildings to install letter boxes for each flat on the ground floor. Thousands of high-rises have come up in the city, but not all have lifts, and aged postmen are forced to sweat it out, sometimes to deliver a single envelope.
A copy of the circular is in possession of The Times of India. However, a senior postal official said a similar order was issued in 2001 again but nothing has changed. "It's only optional and the department has a mandate of door delivery. Speed post and money orders have to be door-delivered, only ordinary post can be dropped off in mailboxes."
A senior postman explained how difficult work can be at times. "In apartments with security personnel, we don't need to enter, and leave all envelopes with them. But in some apartments, there is no security. We end up climbing stairs and it's risky because we carry money orders and cheques. If we are attacked, there is no safety. Some of us have gone through bitter experiences," he said.
Even if lifts are available, postmen prefer taking the stairs. They reason: "Lifts can be scary as you never know when we might get stuck. What if the person standing next to us snatches the envelopes and runs away?"
"The public demands door delivery. People have no time to collect their own mail. People should set up mailboxes on the ground floor at least," says S S Manjunath, state secretary for Group C Employees Union.
AGE FACTOR
R Seethalakshmi, state secretary for Union of Postmen and Group D Employees, says at least 30% postmen are aged over 50, and 50% are in the 40-50 age group. "Besides, we are managing with just 55% staff. Recruitment is on," she added.
Postmen also complain that people do not come forward to receive posts which contain notices from banks and courts. "If they anticipate such notices, residents do not even open the door. Every day, each postman deals with five or six such notices. We intimate the neighbours, but not many collect their mail from us. When the final notice arrives from the bank or court, the postal service is blamed," Seethalakshmi said.

ದಿ ಟೈಮ್ಸ್ ಆಫ್ ಇಂಡಿಯಾ , ಜನವರಿ ೨೫ /೨೦೧೧