In a way, both EPF and VPF are the same with the exception of the Voluntary Provident Fund allowing individuals to add extra money. On the other hand, PPF has a lock-in period but offers flexible withdrawals.
Retirement plans backed by the government offer many options to individuals to secure their future. There are three popular choices within this among people - Voluntary Provident Fund (VPF), Employee Provident Fund (EPF), and Public Provident Fund (PPF). Today, we will tell you all about these plans and their withdrawal rules, eligibility criteria, and risk factors so that you can take an informed decision about your future.
Employee Provident Fund (EPF)
Employee Provident Fund (EPF) is a mandatory retirement savings scheme. Under this, both the employee and the employer contribute a fixed amount to the EPF as per the salary structure. Partial withdrawals are allowed, however, the entire corpus is released when a person reaches the age of retirement. EPF plan also provides tax benefits and is suitable for salaried employees and as a retirement-focused savings option.
READ | Akash Ambani's wife Shloka Mehta looks stunning in pink ruffled dress at baby shower ceremony, photos go viral
Public Provident Fund (PPF)
Public Provident Fund (PPF) allows individuals to contribute to their retirement funds while reducing taxation. PPF has a tenure of 15 years and partial withdrawals are also allowed after a certain time. This investment option can be used by both salaried and non-salaried individuals.
Voluntary Provident Fund (VPF)
Under the Voluntary Provident Fund (VPF), the monthly contribution is fixed, however, the employee can give higher amounts to the fund on a voluntary basis. If one gets a bonus or other income in excess, they can add that amount to their retirement plan. If you withdraw the money after five years, no tax will be deducted.
READ | WBCHSE Class 12th Result 2023 releasing today at wbchse.wb.gov.in, know websites and steps to check scores
So, out of EPF, VPF, and PPF - which one is better for you?
In a way, both EPF and VPF are the same with the exception of the Voluntary Provident Fund allowing individuals to add extra money. On the other hand, PPF has a lock-in period but offers flexible withdrawals.
Under the Employee Provident Fund (EPF) and Voluntary Provident Fund (VPF), the interest earned is non-taxable if it remains below Rs 2.5 lakh in a financial year, while government employees have a higher threshold of Rs 5 lakh.
But, if the interest transcends these points, it will be subject to taxation under income from other sources. The interest earned on the Public Provident Fund (PPF) is not taxable.
The main thing to note here is that all of these options are low-risk.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "EPF vs PPF vs VPF: Which retirement plan is best for you? Know here")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}