Do you invest in VPF ? Interest @8%+ tax free?

[manzb]

Yes this was a big bummer in the last or last to last budget. Post that VPF has become useless

True. A small group who has a gap between upto 250K can use this. Else it is money stuck unnecessarily. But still some good options are there like NPS (only 50K) and SuperAnnuation (if your company subscribes to a SA fund). One more can be Co supported Lease Vehicle scheme.

 

[msankadi]

True. A small group who has a gap between upto 250K can use this. Else it is money stuck unnecessarily. But still some good options are there like NPS (only 50K) and SuperAnnuation (if your company subscribes to a SA fund). One more can be Co supported Lease Vehicle scheme.

Can you provide more details around SA - I think I read some email from HR like that but read only subject and skipped

 

[ak93]

Companies hesitate as this can result in higher grauituty . In my firm 30% of total pay is basic.

The benefit is tax free interest at highest rate. No govt debt instrument gives this rate.

Just make sure your contribution (EPF+ VPF) < 2,50,000 p.a.

We had 3 options to choose from till last year - 30%, 40% and 50%! Now they have fixed it to 40% for all.

 

[manzb]

Can you provide more details around SA - I think I read some email from HR like that but read only subject and skipped

There are lots of info available in the net. But the prerequisite is that your company must be subscribing to SA fund and offers that facility to it's employees. Nowadays most companies (the new age ones) typically don't provide this as it means lesser in hand and many employees dislike that. SA is not a mandatory debit but voluntary contribution.