Before start, we must know a brief about the types/categories of Provident Fund:
Types | During Service /Contribution Period | Repayment / Redemption | ||
Employee's Contribution | Employee's Contribution | Interest on PF | Retirement/ Registration / Termination | |
SPF | Deduction U/S 80C is available | TAX -Free | Fully Exempt | Fully Exempt |
RPF | Deduction U/S 80C is available | Exempt up to 12% of Salary | Exempt up to 9.5% | Fully Exempt, if, -Employee leaves the job after 5 years. -Where the period of service is less than 5 years, the termination is due to ill health (or) discontinuance of the business of the employer. -PF balance is transferred to RPF with a new Employer. |
UPF | Deduction NOT available | Not Taxable | Not Taxable | Employer'sContribution and Interest thereon is Taxable. Interest on employee's contribution is taxable as 'Income from Other Sources'. |
PPF | Deduction U/S 80C is available | Not Applicable | Fully Exempt | Fully Exempt |
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