TAX saving options like vpf and 80c investments

Tax saving options-80c

1. Key points Safe option to invest :Since the scheme is operated by the Indian Government, High rate of interest :8.5% (2020-2021) Transfer process is simple : In case employees change their jobs, it is very simple for them to transfer the VPF account of the old company to the new one. Limit for VPF : Maximum investment in EPF&VPF together is limited to 100% basic salary. Period : If you started, you could stop the contribution only by next year. How to invest : VPF Contribution Voluntary Provident Fund (VPF) is an extension of the EPF VPF 1

2. Popular Tax-saving Investment Schemes *Post office FD provides higher interest rate than banks. **NPS provides additional of ₹50000 over and above the limit of ₹150000/-. Under Section 80C – 1.5 Lakhs 2 Lock-In Period/ Yrs Interest (%) Guaranteed Returns Risk factor Category Debt Investment Employee Provident Fund (EPF) Voluntary Provident Fund (VPF) Untill Retirement 8.5% Yes Low EEE Public Provident Fund (PPF) 15 7.1% Yes Low EEE Tax saving Fixed Deposits 5 5-6% Yes Low ETE National Saving Certificate (NSC) 5 6.8% Yes Low EET Sukanya Samriddhi Yojana (SSY) Till girl child reaches 21 years of age 7.6% Yes Low EEE Equity Investment Equity-Linked Savings Scheme(ELSS) 3 12 – 15 approx Market Linked High EEE/EET Unit-Linked Investment Plans (ULIP) 5 8 -10 approx Market Linked Medium EEE National Pension Scheme (NPS) Till 60 years of age 8 -10 approx. Market Linked High EEE/EET