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Investment scheme: Interest received in this scheme is as much as PF; You can invest 100% of the basic amount

Every person who has an EPF account can invest in VPF. In this you can invest more than PF. For example, you can invest 12 percent of your basic salary and DA in EPF.

Investment scheme: If you are a working person and your PF is getting deducted, then there is a very good savings scheme for you related to the same. In this you do not have to open any separate account. You just need to have a PF account. This is an extension of PF whose name is VPF or Voluntary Retirement Fund. Apart from PF, you can also invest in this. Its returns are also same as PF. Which is currently 8.15 percent.

Every person who has an EPF account can invest in VPF. In this you can invest more than PF. For example, you can invest 12 percent of your basic salary and DA in EPF. On the other hand, you can invest 100 percent of your basic salary and entire DA in VPF. In this matter it surpasses even NPS. In NPS, you can contribute only 10 percent of basic salary along with DA.

Lock in period

If we talk about lock in period, on one hand you cannot withdraw the entire money from PF until retirement or until you lose your job. In NPS also you have to invest till retirement. You can withdraw some money after a few years. But the lock in period in VPF is only 5 years. After this you can withdraw the entire money.

Tax benefit

In terms of tax deduction, it is similar to PF. There also you can claim tax exemption on investment up to Rs 1.5 lakh. In VPF also you can claim tax deduction on investment up to Rs 1.5. Tax exemption is claimed under Section 80C of Income Tax on investments made under VPF.

PPF vs VPF

In many respects it is even better than the Public Provident Fund. In PPF you get a return of 7.1 percent on investment whereas here you are being given a return of 8.15 percent. There itself. The lock-in period in PPF is 15 years whereas in VPF it is only 5 years.

Shyamu Maurya
Shyamu Maurya
Shyamu has done Degree in Fine Arts and has knowledge about bollywood industry. He started writing in 2018. Since then he has been associated with Informalnewz. In case of any complain or feedback, please contact me @informalnewz@gmail.com
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