Hi there,I am sure you must have heard about the Employer’s Provident Fund (EPF) where both the Employer and the Employee contribute a minimum of 12% of the salary to the scheme mandatorily. If you know about the EPF scheme, you will be able to understand what is VPF and ‘does VPF comes under 80C’. Let me give a brief introduction about VPF.Pay You Water/Electricity/Piped Gas Bills via NoBroker and Get Assured Cashback!Get home loans at the lowest interest rate from NoBroker and avoid hefty paperworkVPF is just an extension of EPF. The full form of VPF is the Voluntary Provident Fund. The contributions made in this scheme are voluntary and more than 12% contributed to EPF. By contributing to VPF you can enjoy some tax benefits as well.
Is VPF part of 80C?
Who doesn't want to save on taxes? Literally everyone! So, if you are looking for a scheme to invest in you can go for the VPF scheme. As per Section 80C, you can claim up to Rs. 1.5 lakh and you can also save about Rs. 46,800 every year if you belong to the highest tax bracket. Therefore, VPF is a good tax-saving option.Apart from these benefits, you will also earn interest of 8.5% which is tax-free, if you invest in VPF. The withdrawals made after 5 years are also not taxable. But if you make any withdrawals within 5 years it is taxable. I must let you know that the interest earned over Rs. 2.5 lakh under the VPF scheme is taxable. But if there is no employer contribution to the VPF scheme then interest on the contribution is tax-free over Rs 5 lakh.VPF is one of the secure and greatest investment options to save on taxes. I hope this clears your doubt about ‘does VPF comes under 80C?’Read more:What is the Maximum Limit for VPF Contribution?What Is The Difference Between PPF and VPF?How To Check VPF Balance?How To Open VPF Account?
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Does VPF comes under 80C?
Garfield
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August 30, 2022
2022-08-30T09:48:42+00:00 2022-08-30T09:48:44+00:00Comment
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Taxes
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