Tax Saving: The time for tax saving is going on. There is only time till March 31 to avail the benefit of income tax exemption in the financial year 2023-24. In such a situation, if you are preparing to invest, then it would be better to invest in Public Provident Fund (PPF) or Voluntary Provident Fund (VPF).
Tax Saving: The time for tax saving is going on. There is only time till March 31 to avail the benefit of income tax exemption in the financial year 2023-24. In such a situation, if you are preparing to invest, then which would be right to invest in Public Provident Fund (PPF) or Voluntary Provident Fund (VPF)? Let us tell you that at present 7.1 percent interest is available on PPF and 8.25 percent interest on VPF. Apart from this, there is also EPF scheme for retirement. Let us know where it would be better to invest among these two.
There are 3 provident fund schemes among the schemes run by the government. First, there is Voluntary Provident Fund (VPF), Employees Provident Fund (EPF) and Public Provident Fund (PPF). It is quite famous among those people who want to create a big fund for their retirement. Know which scheme can be more beneficial for you.
EPF
It is a mandatory retirement savings scheme. Both the employer and the employee contribute to EPF. The contribution of the worker and the employer is decided according to the salary structure. Whereas, some money can be withdrawn from it. Partial withdrawal is permitted, the full amount will be released only when the individual reaches retirement age. The scheme provides tax benefits. EPF is suitable for salaried individuals who need a retirement-focused savings option.
PPF
This helps the employed person to create a bigger corpus after retirement and also helps in reducing taxes. The minimum lock-in period of PPF is 15 years. However, a certain amount of money can be withdrawn after some time. Anyone can invest money in PPF. This is a long term investment plan.
VPF
The amount invested in VPF is fixed but if the employees wish, they can invest more money as per their wish. This means that you can also invest your rental income or money from mutual funds in it. You can invest more money in this. There is an option to withdraw money after five years. No tax is deducted on this.
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