Question 1
Under the Employees' Provident Fund (EPF) scheme, withdrawal is tax-free after how many years of continuous service?
View 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.
Question 2
In NPS, the annuity purchased at retirement provides pension:
View Explanation
Annuity plans typically provide regular income for life. Options include Life Annuity, Joint Life Annuity, and Return of Purchase Price to nominees.
Question 3
The maximum deposit limit for an individual in the Senior Citizen Savings Scheme (SCSS) is:
View Explanation
The limit was enhanced from ?15 Lakh to **?30 Lakh in the Union Budget 2023-24 to provide better social security to seniors.
Question 4
Under Reverse Mortgage, the loan amount disbursed to the senior citizen is based on:
View 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.
Question 5
Voluntary Provident Fund (VPF) contribution:
View 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.
Question 6
In NPS, PFM stands for:
View 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).
