1. Under the Employees' Provident Fund (EPF) scheme, withdrawal is tax-free after how many years of continuous service?
3 Years
7 Years
5 Years
10 Years
Explanation:
Withdrawals from EPF are tax-free if the employee has rendered continuous service for a period of 5 years or more. Otherwise, the withdrawal is taxable.
2. In NPS, the annuity purchased at retirement provides pension:
For 5 years.
Until the corpus is exhausted.
For the lifetime of the subscriber (and spouse, if opted).
For 10 years only.
Explanation:
Annuity plans typically provide regular income for life. Options include Life Annuity, Joint Life Annuity, and Return of Purchase Price to nominees.
3. The maximum deposit limit for an individual in the Senior Citizen Savings Scheme (SCSS) is:
?30 Lakh
?50 Lakh
?15 Lakh
?1 Crore
Explanation:
The limit was enhanced from ?15 Lakh to **?30 Lakh in the Union Budget 2023-24 to provide better social security to seniors.
4. Under Reverse Mortgage, the loan amount disbursed to the senior citizen is based on:
The number of children they have.
Their credit score only.
Their monthly pension.
The value of the residential property and the age of the borrower.
Explanation:
Older borrowers and higher property values allow for higher loan amounts (and thus higher monthly payments) because the loan tenure is shorter or the asset backing is stronger.
5. Voluntary Provident Fund (VPF) contribution:
Is managed by private players.
Requires a separate account opening.
Has a different interest rate than EPF.
Is the contribution made by the employee over and above the mandatory 12% to the same EPF account.
Explanation:
VPF enjoys the same interest rate and tax benefits as EPF (subject to the ?2.5 Lakh cap on tax-free interest). It gives flexibility to save more for retirement.
6. In NPS, PFM stands for:
Provident Fund Manager
Portfolio Fund Manager
Pension Fund Manager
Public Finance Ministry
Explanation:
PFMs are the professional fund management companies appointed by PFRDA to invest the pension corpus in various asset classes (Equity, Corp Bonds, Govt Securities).