I have started investing Rs 5k every month towards VPF. How is the taxation for VPF. I read that the Maturity proceeds from VPF are tax exempted only if the employee has serviced the company for a continuous period of 5+ years. I have been with my present company for 12 years now but have started VPF this year only. So if i change my company next year will the maturity amount be taxed??
2 Answers
Hi,
Yes, the withdrawals are tax-exempt after 5 years of contribution.
I believe that if you have been contributing to PF for more than 5+ years and to VPF of the same EPF account then the withdrawals are tax-exempted (though your VPF contributions are only for the last one year).
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