Types of Provident Fund
1. Statutory Provident Fund (SPF): It is commonly referred to as a government provident fund, it is specifically designed for employees in government, semi-government, universities, educational institutions affiliated with a university established under statute, or other specified institutions.
2. Public Provident Fund (PPF): This type of provident fund is available to the general public. In simple terms, it means one can invest in PPF if you are salaried, self-employed, or even unemployed for a while (as long as funds are available to invest).
3. Recognized Provident Fund (RPF): As per the act, any person employing 20 or more individuals is obligated to register under this scheme. Registration is optional for establishments with less than 20 employees.
4. Unrecognized Provident Fund (URPF): An Unrecognized Provident Fund (URPF) is initiated by both employers and employees in an establishment, subject to approval by the Commissioner of Income Tax. In the case of RPF, if the Commissioner of Income Tax refuses to approve the provident fund scheme, it becomes an unrecognized fund.