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

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Voluntary Provident Fund (VPF) Employed people invest in EPFO. In this they get the benefit of high interest rate along with security. Voluntary Provident Fund is also available in EPFO. This is a better option for investment. Let us know what are the benefits of Voluntary Provident Fund and why one should invest in it?

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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 Voluntary Provident Fund (VPF). This is also a very good option for investment. Your investment in 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 Voluntary Provident Fund?

Benefits of Voluntary Provident Fund

In this fund you are given interest by the government. If you increase your contribution in PF account then you get 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 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 tax exemption up to Rs 1.50 lakh under 80C of the Income Tax Act 1961.

How to invest in Voluntary Provident Fund

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 company’s HR, you can open VPF account along with EPF account. After opening the VPF account, money will start being deducted from your salary.

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