VPF allows employees to contribute more than the mandatory EPF rate for a larger retirement corpus. Contributions over ₹2.5 lakh face taxation on excess interest. VPF matches EPF's interest rate and qualifies for tax deductions under Section 80C, with specific withdrawal conditions.
EPFO: Taxation rule on Voluntary Provident Fund - the ₹2.5 lakh VPF threshold, explained
livemint.com - 7 Jul 2026 21:47
VPF allows employees to contribute more than the mandatory EPF rate for a larger retirement corpus. Contributions over ₹2.5 lakh face taxation on excess interest. VPF matches EPF's interest rate and qualifies for tax deductions under Section 80C, with specific withdrawal conditions.
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