Understanding VPF:
VPF stands for Voluntary Provident Fund. As the name suggests, it is a voluntary contribution to the provident fund. While your salary has a fixed deduction for PF, VPF is an additional amount that your company deposits in your PF account upon your written request. Unlike EPF (Employee Provident Fund), VPF contributions are not mandatory and are completely voluntary.
Interest Rates and Contributions:
The Government of India sets the interest rate for VPF accounts at the beginning of each financial year. This rate often tends to be higher compared to other deposit schemes. Currently, it stands at 8.15% for the current financial year, which is higher than the EPF (Public Provident Fund) scheme. Contributions to VPF are similar to EPF deductions, with your employer depositing the amount in your VPF account monthly.
Withdrawal and Tax Benefits:
VPF does not include the mandatory 12% contribution that employees make to the Employee Provident Fund (EPF). The interest rate for VPF is similar to the EPF scheme. VPF accounts have a lock-in period of 5 years, but withdrawals can be made as per the rules for purposes like medical bills, marriage, higher education, buying property, or home construction. VPF falls under the EEE category, meaning the contributions are tax-free, and the interest earned can be a significant amount for retirement planning.
VPF का नियम यह कहता है कि यह प्रॉविडेंट फंड का एक वोलेंटरी योगदान है जिसे स्वैच्छिक तौर पर किया जा सकता है। जबकि पीएफ से निकाला जाने वाला धन नियमित रूप से कटता है, वीपीएफ खाते में आपकी लिखित रिक्वेस्ट पर योगदान किया जाता है। इसमें आपको टैक्स बेनिफिट भी मिल सकता है और इसे रिटायरमेंट कॉर्पस के तौर पर भी उपयोग किया जा सकता है।