- 1 Can I change my VPF contribution?
- 2 Can VPF be withdrawn?
- 3 Should you stop investing in VPF?
- 4 Is VPF interest compounded monthly?
- 5 Does VPF have lock-in period?
- 6 What is the advantage of VPF?
- 7 Which is better VPF or PPF?
- 8 Which is better EPF or NPS Quora?
- 9 Can we have both VPF and PPF?
- 10 How interest is calculated on VPF?
- 11 What is VPF Quora?
- 12 Is PF exempted in new tax regime Quora?
- 13 Is employer contribution to PF taxable Quora?
Voluntary Provident Fund or VPF is a good option because when opting into it, it is treated at par with Employee/Employer Provident Fund (EPF), meaning you get the same tax benefits, treatment, etc. It gets the same protection from the government such as it cannot be attached to court orders, etc.
Correspondingly, is VPF Benificial? The Voluntary Provident Fund (VPF) is one of the tax-saving investments covered under Section 80C of the Income Tax Act, 1961. It offers tax deductions of up to Rs 1,50,000 a year and taxpayers can save up to Rs 46,800 a year in taxes. … Furthermore, the EPF investments earn a guaranteed rate of returns at 8.5% p.a.
Also know, is VPF safe? Benefits of VPF Safe option to invest: Since the scheme is operated by the Indian Government, there are no risks involved in investing in the scheme. Compared to other long-term investment options offered by private organisations, it is very safe to invest in a VPF account.
Best answer for this question, is VPF better than PPF Quora? VPF is better than PPF. Interest on VPF is 8.65% but on PPF it is 8 % only. Both are tax free.
You asked, is VPF taxable Quora? Employees contributing to VPF are eligible for tax deductions up to Rs. 1.5 lakhs per annum. However, if the employee withdraws from VPF before 5 years of his service life, then the interest accrued on VPF will be taxable. Moreover, if the interest rate is above 8.5%, then it will attract tax.
Can I change my VPF contribution?
It is possible to change the VPF from the old company to the new one. Since the account is linked to an individual’s Aadhaar card, the process is very simple. Are there any eligibility criteria to open a VPF account? Any individual who is a part of an organisation’s payroll can open a VPF account.
Can VPF be withdrawn?
Employers are under no obligation to contribute to their employees’ VPF portfolio. Likewise, an employee is also under no obligation to contribute to the Plan. Once the contribution is chosen in VPF, the same cannot be terminated or discontinued before the base tenure of 5 years completed.
Should you stop investing in VPF?
“VPF investors should reduce the self contribution to the Provident Fund to Rs 2.5 lakh and invest the rest in NPS where they can claim additional tax deduction and potentially earn higher returns,” says Sudhir Kaushik, Co-founder of tax filing portal Taxspanner.com.
Is VPF interest compounded monthly?
Interest for a Voluntary Provident Fund is calculated monthly based on the opening balance of each month. … As per the EPFO mandate, his contribution to his EPF account is 12% of his salary. However, he decides to contribute an additional 8% per month to VPF.
Does VPF have lock-in period?
Lock-in period As per Voluntary Provident Fund withdrawal rules, contribution to a VPF account is subject to a maturity period of 5 years. Therefore, an individual cannot withdraw any sum from their Voluntary Provident Fund before the completion of 5 years sans repercussions.
What is the advantage of VPF?
Tax benefits available under a VPF Under Section 80C of the Income Tax Act, 1961, employees can avail of tax benefits. The benefits can be up to Rs. 1.5 lakh. Your contributions generate interest, which is also exempt from tax.
Which is better VPF or PPF?
Higher contribution to VPF along with a higher interest rate can provide a faster way to build a sizeable retirement fund. The rate of return for PPF is set every quarter. Therefore, any hike in the interest rate will increase your tax-free returns, and any rate cuts will slash your returns.
Which is better EPF or NPS Quora?
Originally Answered: Which is better: NPS or EPF? The basic difference between EPF and NPS is that whereas EPF gives assured tax-free returns in the shape of annual interest, the NPS, on the other hand, gives market-linked returns where the maximum of 50 percent of contributions can be allocated to equity markets.
Can we have both VPF and PPF?
Both the VPF and PPF suit long-term goals. If you are a self-employed person, then PPF is your only option. If you fall in the higher income tax bracket and are looking to invest larger amount in fixed income investment options with tax-free return, then you can utilise both the options together.
How interest is calculated on VPF?
To calculate the monthly rate of interest of VPF, it is divided by 1200 and then multiplied by a month’s opening balance. Example: Ranjan joined Company XYZ for a salary of Rs. 30,000 on 1st April 2020. As per the EPFO mandate, his contribution to his EPF account is 12% of his salary.
What is VPF Quora?
Voluntary Provident Fund (VPF) aka Voluntary Retirement Fund is the voluntary fund contribution from the employee towards his provident fund account. This contribution is beyond the 12% of contribution by an employee towards his EPF. The maximum contribution is up to 100% of his Basic Salary and Dearness Allowance.
Is PF exempted in new tax regime Quora?
There is no change to PF amount and exemption rule: PF is still part of 80C, along with a host of other avenues also such as PPF, NPS, Life Insurance, KVP, NSC, SSY, etc. Maximum amount allowed as tax rebate under 80C is still Rs. 1,50,000.
Is employer contribution to PF taxable Quora?
For taxation purpose Employer’s contribution to PF unto 12% of basic pay is exempt for Income Tax. For other purposes CTC/ Gross Salary includes Employer’s contribution to PF. No, as per IT Law, PF contribution of the employer is not included in the gross salary.