Synopsis
If an particular person is covered Employees’ Provident Fund (EPF), then every month same is deducted from his/her salary. To make an additional contribution to the EPF anecdote, one can perform so through Voluntary Provident Fund (VPF). However, perform demonstrate that if the contributions through EPF and VPF exceed Rs 2.5 lakh in a twelve months, then the eagerness earned on this can became taxable.Getty ImagesOnce the VPF contribution is understood then you definately would possibly perhaps perhaps quiet no longer elevate same amount will proceed in some unspecified time in the future years as neatly.The authorities notified the Employees’ Provident Fund (EPF) ardour price at 8.1% for FY 2021-22. Though the EPF ardour price for FY2022 is decrease by 40 bps in contrast with the old twelve months, then all another time, it is a long way quiet elevated than the eagerness price/returns equipped by diverse debt funding merchandise. Further, with the Reserve Monetary institution of India (RBI) climbing essentially the most important policy rates (repo price), it is a long way doubtless that ardour price on EPF shall be hiked within the impending years.
Deal with this in mind many would want to hike their EPF contributions
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