Question

difference between epf and ppf

Answer 1

PPF, a statutory scheme by the central government, started with the objective of providing old age income security to self-employed individuals and workers from unorganised sectors. EPF, on the other hand, is a retirement benefit applicable only for salaried employees.

Answer 2

Account Type:

In EPF account, both the employer and employee are responsible for managing the account whereas in PPF, the account holder is solely responsible as they are the only contributor.

Eligibility:

Only employed and salaried individuals are eligible for EPF while even minors can apply for a PPF account.

Withdrawal:

Premature withdrawals in EPF will attract tax while no premature withdrawal is allowed in PPF.