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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 per cent.

VPF limit: If you also invest under the 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 the Economic Times, the limit of investment in the 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 investments 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 raised with the Finance Ministry next year.

It is expected that this matter will be raised with the Finance Ministry during the budget discussions for the financial year 2026. This decision can be taken by the government to encourage people who belong to the middle class and have a low salary to deposit money. 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 invested up to Rs 2.5 lakh tax-free on the amount deposited in EPF. The tax has to be paid on the interest received on more than this amount.

Tax benefits from investing in VPF

This decision was taken by the government so that tax could be imposed on the high-interest money. This rule was for those people who have a high salary and they deposit more money in EPF so that they can avoid 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, by investing in VPF, you get 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 had increased to a record high level of 12%. It remained at the same level for 11 consecutive years till the financial year 2000. The interest rate of EPFO ​​for the financial year 2022 was 8.10%. After this, it was 8.15% for 2023 and 8.25% for the financial year 2024.

More than 20 lakh crores were deposited in EPF.

According to the current rules of EPF, you can deposit money in EPF as per your wish. There is no limit to this. But, the government has banned 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 whose salary is high and who 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 20 lakh crores is deposited in EPF.