Should you shift your investments to NPS/Mutual funds due to change in tax structure on EPF

With taxation on EPF interest should you move your investments to mutual funds or NPS?

What is the first investment option that comes to the mind of any salaried person? It is undoubtedly EPF. Employees Provident Fund (EPF) has long been a preferred investment option of the salaried class in India.

Multiple benefits like tax exemptions, building a corpus fund for retirement benefits, etc. and easy deductions from the salary of the person make it a very lucrative and easy investment destination. Another important advantage of EPF is that it belongs to the  Exempt-exempt-exempt (EEE)  category where the contribution made, the interest earned and the amount received at the end of maturity is not taxable under the Income Tax Act, 1961. 

Recent amendments to EPF in Budget 2021 and its impact on investors


Retirement Plan

Retirement: Not an end, but a new beginning


Many will plan for retirement but still, there are people who want to work till they die. It sounds good. What if things go wrong? There are two things: one- your health, two- the ability to work. Your aging body can lower your immunity and can reduce the work you do. As you age, you might feel difficult to cope up with the new skills which earn your bread.

So, it is better to have a plan for retirement to set yourself financially free. “Financially free – where you don’t need to work to pay your bill and have enough assets that earn you returns for today and for the rest of your life”.

You can be financially free only if you have answers to these questions:

  1. How can you plan for your retirement?
  2. How much is enough?
  3. How can you know that you are on track?