PF Interest Rate: For the last several financial years, EPFO has been giving more than 8% interest. In the financial year 1990, it reached a record level of 12%. Till the financial year 2000, it remained at the same level for 11 consecutive years. Currently, it is 8.25 percent.
If you also invest under Volunteer Provident Fund (VPF), then this news will make you happy. Big planning is being done by the government regarding this. According to the news published in Economic Times, the limit of investment in Volunteer Provident Fund (VPF) under the Employees Provident Fund Organization (EPFO) can be increased from Rs 2.5 lakh with tax free interest. Currently, the interest received on investment more than this is taxable. People associated with this matter said that the Ministry of Labor and Employment is investigating this matter.
The matter is expected to be taken up with the Finance Ministry next year
It is expected that this matter will be raised with the Finance Ministry during the budget discussions of the financial year 2026. This decision can be taken by the government with the aim of encouraging people who come in the middle class and have a low salary to deposit. The government intends that they should deposit as much money as possible in EPF so that when they retire in the future, they have enough money. Earlier, the government had made investment up to Rs 2.5 lakh tax free on the amount deposited in EPF. Tax has to be paid on the interest received on more than this.
Tax benefits from investing in VPF
This decision was taken by the government so that tax can be imposed on the high interest income. This rule was for those people who have a high salary and they deposit more money in EPF so that they can save tax. Similarly, the amount deposited in VPF, the interest received on it and the money you get when you withdraw it. You do not have to pay any kind of tax on all these. That is, investing in VPF gives you a lot of benefits in terms of tax.
When 12% interest was given on PF money,
EPFO has been giving more than 8% interest for the last several financial years. In the financial year 1990, it increased to a record high level of 12%. Till the financial year 2000, it remained at the same level for 11 consecutive years. For the financial year 2022, the interest rate of EPFO was 8.10%. After this, for 2023 it was 8.15% and for the financial year 2024 it was 8.25%.
More than Rs 20 lakh crore deposited in EPF
As per the current rules of EPF, you can deposit as much money as you want in EPF. There is no limit in this. But the government has put a stop to the misuse of this rule. Now if you deposit more than Rs 2.5 lakh in a year, you will have to pay tax on the interest. This rule was made for such people who have high salary and they deposit more money in EPF to avoid tax. Crores of people deposit money in EPF and crores of people are taking pension. A total of more than Rs 20 lakh crore is deposited in EPF.
Related Articles:-
SBI Customers Alert: Govt warns crores of SBI customers, be careful of this message, otherwise…
5 Rs Rare Note: You can get 2 lakh rupees from this 5 rupee note? Know how
