if you are hired, every month part of your profits (12%) is deducted and deposited inside the EPF account in your future. Your employer also deposits the same quantity.
The authorities is currently giving a wonderful interest of 8.25% on this deposit, that is greater than many government schemes. manifestly, with this interest, a huge fund may be created for you in the long run. however do you already know that you may take even greater benefit of this huge interest? these days, we are telling you the method by way of which you can gather the hobby to your EPF inside the authentic sense.
what's this 'mystery' method?
The name of this approach is Voluntary Provident Fund (VPF). as the name suggests, it relies upon in your wish. this is an extension of EPF, wherein you can deposit extra cash on your EPF account as in keeping with your desire. The excellent component is which you get the same hobby on VPF (i.e., 8.25%) as on EPF. In a way, it is a super way to enhance your financial savings.
How a great deal money can be installed VPF?
there may be no higher limit. in keeping with the policies, an employee can deposit as much as 100% of his primary salary and dearness allowance (DA) in VPF. while your contribution to EPF is limited to simplest 12%. which means, if you need to store more and do now not need to take the chance of investing some other place, then VPF is first-class for you.
a way to begin investing in VPF?
This system could be very clean. All you have to do is touch the HR department of your agency. tell them which you need to boom your PF contribution thru VPF. HR will come up with a shape in that you have to inform how a great deal extra a part of your salary you want to deduct from VPF. After submitting the form, your enterprise will entire the method of VPF together with your EPF account, and from the next month, the constant amount will start getting deducted from your revenue.
What are the guidelines for retreating cash?
The rules of VPF are precisely like EPF. you may withdraw the complete amount of your VPF most effective after retirement. After the of entirety of the lock-in period of five years, you may withdraw some cash if wanted. which includes for children's education, marriage, or residence construction. if you trade jobs, then the VPF account is also without difficulty transferred to the brand new organization together with your EPF account.
you may additionally get wonderful benefits in taxes
VPF is also a splendid alternative for investment because it comes below the E-E-E (Exempt-Exempt-Exempt) class. this indicates exemption on investment, exemption on interest and exemption on withdrawal as well.
what is the difference among EPF and VPF?
EPF is a obligatory contribution of 12% deducted out of your profits. VPF is an additional contribution over and above this 12% which you may make at your discretion.
Does the enterprise also contribute the equal quantity to VPF?
No, the business enterprise's contribution is restricted in your 12% EPF share best. VPF is contributed by using you handiest.
Is the interest on VPF usually identical to that on EPF?
sure, the hobby price that the government announces for EPF each year applies to VPF as nicely
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