What is the difference between epf and vpf

Which one is the better money-making provident fund investment tool and which one can give you maximise return? PPF is a savings scheme offered by the central government. It was started with the aim to provide old age income security to self-employed individuals and workers from unorganised sectors.

People working in the informal sector or unorganised sector, as well as unemployed, self-employed, can invest in PPF. Similarly, taxpayers can claim tax deductions of up to Rs 1,50, annually by investing in PPF.

The minimum investment of Rs should be made in a year. One cannot invest more than Rs 1,50, a year. The returns offered by PPF accounts are fixed and are backed by sovereign guarantees. The rate of interest currently stands at 7. Download our App Now!! It'll just take a moment. Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image. You are now subscribed to our newsletters.

The EPF account is transferable across all eligible employers and you need to inform your new employer that you are willing to make VPF contributions as well on a job change. Voluntary Provident Fund is a great option as it offers guaranteed returns and it is deducted directly from the salary. Thank you for your response. Are you a salaried employee? Download link sent. Recent Articles Crypto special events: Add free crypto to your portfolio Know about intraday and arbitrage trading in cryptocurrency Non Fungible Tokens Taxation on Cryptocurrency Calculation of taxable interest on P.

Upload your Form For PPF , the contribution is voluntary and can be up to Rs. As the interest earned on PPF investment is related to year government bond yields, the interest rate changes regularly. After completion of this duration, you can extend it in 5-year blocks. If you switch job, the account can also be transferred to another employer. Returns from your PPF investment are tax-free. Even the proceeds after EPF and VPF maturity are tax-free but only if the employee has worked for the employer for at least five years.

Any withdrawal before completing five years is taxable. One of the biggest advantages of provident fund schemes is their loan facility. With PPF, you can get a loan against your investment. You can also take a second loan before the 6 th financial year of your investment is completed.