The Voluntary Provident Fund is definitely an excellent scheme to opt for so that one can save as much money as possible and use it during his or her old age. I too have started investing money in this scheme, the retirement scheme initiated by our government and the best part is their high interest rate. On savings accounts in the banks, the interest rate is about 5 to 5.5% but here it is 8.5% which is indeed great. However people often overlook the VPF tax exemption limit and think one can contribute as much as they like but No. Do not surpass the limit of contribution if you really do not want to give tax
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Is Voluntary Provident Fund Tax exempt?
You can say that the Voluntary
Provident Fund is tax exempt if your contribution in this account remains within Rs 1.5 lakh. If it exceeds then
VPF income tax exemption is not valid. An additional EPF account will be opened for crediting the interest earned on the excess contribution. So try to be within this VPF income tax exemption limit only to avoid paying extra money.
Under which section is this scheme exempt?Under Section 80C of the Income Tax Act, 1961 employees get tax exemption benefit up to Rs 1.5 lakh.
This is all I know about the VPF tax exemption limit
Read More:How to withdraw voluntary provident fund?
How to check VPF balance?
How to open VPF account?
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Is Voluntary Provident Fund Tax Exempt?
Sayali
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3 Year
2022-08-23T16:58:50+00:00 2022-08-23T16:58:51+00:00Comment
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