There is a state of confusion in the minds of many people regarding EPF, PPF and VPF. Apart from this, people do not even know about the interest rate or income tax benefits of all
You must have heard about these three names EPF, PPF and VPF. Often people are not aware of the difference between these three. There is a state of confusion in the minds of many people regarding EPF, PPF and VPF. Apart from this, people do not even know about the interest rate or income tax benefits of all three. So let us try to know from the experts about the income tax benefits of all the three schemes.
EPF, PPF and VPF
EPF or Employees Provident Fund is a government backed retirement benefit scheme designed only for salaried individuals. Whereas PPF or Public Provident Fund is designed to provide old age income security to the account holder. Both offer income tax exemption under Section 80C of the Income Tax Act on investments up to Rs 1.5 lakh in a financial year, but EPF investment is mandatory for a salaried individual, while PPF is an alternative investment tool available to all earning individuals Is.
Economist Manish Ramesh believes that, “PPF is only for those who have no other option. Most importantly, it is necessary for an employee to contribute to EPF, which is also beneficial for him. Talking about VPF, now it is not that beneficial. After the new provisions and changes, VPF does not have much tax benefit. As far as PPF is concerned, it is for those who are not employed. , or else their employer does not deduct their PF.”
“EPF has a limit of up to Rs 1.50 lakh under section 80C of the Income Tax Act. If someone has contributed to EPF and VPF, then he will not get any income tax benefit on depositing Rs 1.50 lakh in PPF. However. You can contribute more under VPF, you will not suffer any loss.
