tribution. Limits of the Voluntary Provident Fund tribution. Limits of the Voluntary Provident Fund

Interest on VPF:
The rate of interest for VPF is the same as EPF. Rate of interest for EPF and VPF announced by the government; it is quite attractive, 8-9% p.a. Compounded annually; for long-term tax-free savings are great
6. Tax Benefits :
All such contributions to the VPF are eligible for tax relief under Section 80C of the Income Tax Act. This section provides for a maximum deduction of ₹1.5 lakh in one year. Thus, if the employee contributes to the VPF, the corresponding amount would be reduced from his income and the resultant increase in the saving on tax.
Another thing is that the interest on VPF is tax-free and, at maturity, the withdrawal is tax-free if one withdraws the money after five years of continuous contribution.
Limits of the Voluntary Provident Fund