Anushka Rathod Instagram – Don’t wait till last moment!
31st March is coming, so start planning your taxes now!
This is the highest guaranteed return scheme under 80C that salaried individuals can invest in!
Introducing VPF i.e. Voluntary Provident Fund
It’s an extension of EPF, allowing salaried employees to invest voluntarily beyond the mandatory EPF contributions.
Now, let’s break down its features:
Riskometer: Low Risk
Eligibility Check: Only Salaried Employee with an existing EPF account.
Liquidity with Limits: Yes, there’s a 5-year lock-in, but guess what? You can make partial withdrawals during emergencies after the lock-in period.
Interest: VPF offers an attractive 8.15% interest rate and the Rates are set by Govt annually.
Investment Cap: The contribution must be more than 12%. Now, it can even be 100% of the basic salary and dearness allowance.
Tax Perks: Enjoy the EEE status – Investments, Interest, and Maturity amount are tax-exempt. But, If your contribution to EPF and Voluntary Provident Fund (VPF) exceeds ₹2.5 lakhs in a financial, then the interest earned on the excess contribution will be taxed as per your income tax slab.
How to invest?
All you need is to inform your employer that you are willing to increase your EPF contribution through a registration form!
Note: ₹46,800 is for highest tax slab i. e. 30%, Assuming section 80C is fully utilized. Actual savings will vary.
Tax rules are complex, so do consult your CA for personalized advice.
[anushka rathod, finance, salaried employee, vpf, investment]
#anushkarathod #finance #salariedemployee #vpf #investment | Posted on 22/Feb/2024 20:26:29
