5 Things To Know About Voluntary Provident Fund Contributions

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Voluntary Provident Fund

While EPF has a 12% cap, VPF has no limit. Individuals can contribute 100% of their basic salary to VPF.


Tax Exemption 

As per the income tax rule, VPF contributions fall under the exempt-exempt-exempt (EEE) category.

Exempted From Tax


VPF is eligible for tax benefits under Section 80C up to Rs 1.5 lakh in a financial year.

Exemptions & Deductions

Exemption on Interest

The combined investment limit for EPF and VPF was set at Rs 2.5 lakh for tax exemptions on interest, exceeding which will attract tax.

Exemption on interest rates

Tax Exemption On Maturity

The maturity proceeds from VPF are tax-free, just like EPF.

Maturity Period

VPF Corpus

VPF can boost savings for retirement while offering flexibility to withdraw money for emergencies. 

Compiled By Himani Verma


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