Understanding VPF (Voluntary Provident Fund)

Introduction to VPF: VPF allows salaried employees to boost their retirement savings beyond mandatory EPF contributions. Contribution Limits: Employees can contribute up to 100% of their basic salary and DA towards VPF.

Tax Benefits: Enjoy tax deductions under Section 80C on contributions, up to INR 1.5 lakhs annually. Minimum Tenure: Contributions are locked in for a minimum of 5 years, ensuring long-term savings discipline.

Interest Rates: Interest rates, currently around 8.65% per annum, are aligned with EPF rates and declared annually. Withdrawal Process: Withdrawals can be initiated for specific purposes after completing the minimum tenure using Form 31.

Benefits: Tax-exempt contributions and interest, high contribution flexibility, and portability between employers. Comparison with PPF and EPF: VPF offers higher contribution limits compared to PPF, with similar tax benefits and investment discipline as EPF.