Which one is better option for tax saving, VPF, PPF or tax saving FD?
Voluntary Provident Fund, covered under Section 80C, is a voluntary payment to the PF account by salaried people in addition to EPF. However, unlike EPF, your contribution does not have to be matched by your employer. You can contribute up to 100% of your basic pay and dearness allowance. The catch is that once you opt for contributing to VPF, you cannot discontinue for a minimum period of five years. There are no restrictions on when you can withdraw it. If you do choose to do it before the completion of five years, then the accumulated amount will get taxed. Otherwise, it enjoys the EEE benefits (exempt-exempt-exempt). There are no limitations on premature withdrawals. The interest rates are usually determined by the government every year. But, if the proposed revision is accepted, ...