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VPF

H S Rajashree (MBA in Finance) (221 Points)

31 January 2008

How much is the max an employee can contribute towards VPF?

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Rajashree

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Garima (Student) (1107 Points)
Replied 31 January 2008

The employee can contribute more than this 12%,in VPF at any rate he desires. His contribution can even go up to 100% of basic and D.A. But the employer is not bound to contribute at the enhanced rate. Apart from the higher interest rates, VPF can give you a tax benefit under section 80C of the Income Tax Act. Your investments in VPF will be considered equivalent to your investment in any other investment instruments under section 80C. . In VPF, funds may remain locked in till retirement