Voluntary Provident Fund is a profitable deal, know why you should invest in it

Employees working in an organized sector deposit a fixed amount of their salary in EPF. This is a kind of investment. In this, the benefit of interest is given by the government. After the employee's retirement, he can use the amount of this fund. Along with the employee, the employer also contributes to this fund.

In the current financial year 2023-24, the interest rate in this fund has been fixed at 8.15 percent. Do you know that in EPFO, employees also get the benefit of the Voluntary Provident Fund (VPF). This is also a very good option for investment. Your investment in the Voluntary Provident Fund remains safe and you also get high returns. Therefore Voluntary Provident Fund is a profitable deal. Come, let us know what are the benefits of the Voluntary Provident Fund?

In this fund, you are given interest by the government. If you increase your contribution in the PF account then you get an interest rate of 8.15 percent. In this, you get the benefit of more interest than FD.

There is no limit on investing in Voluntary Provident Fund. You have to invest in VPF for at least 5 years.

The lock-in period of the Voluntary Provident Fund is 5 years. If you withdraw money from this fund after 5 years, you do not have to pay any tax. This means that you also get the benefit of tax benefits in this. Apart from this, you can claim a tax-exempt option up to Rs 1.50 lakh under 80C of the Income Tax Act 1961.

If you want to invest in VPF, you will have to inform your company about it. After this, you will have to increase your PF amount. With the help of the company's HR, you can open a VPF account along with an EPF account. After opening the VPF account, money will start being deducted from your salary.