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Is it good to have both PPF and NPS?
Each has its own advantages and can be supplemented to achieve long-term goals, primarily being retirement. Rather than trying to figure out which is better between PPF and NPS, make the best use of both PPF and NPS in accumulating a sizable corpus over the long term.
Is NPS and VPF same?
National Pension System (NPS) Voluntary Provident Fund (VPF)
Which scheme is better in NPS?
Best Performing NPS Tier-I Returns 2021 – Scheme E
| Pension Fund Managers | Returns* | |
|---|---|---|
| UTI Retirement Solutions | 21.97\% | 14.04\% |
| SBI Pension Fund | 19.78\% | 13.54\% |
| ICICI Pension Fund | 21.44\% | 13.90\% |
| Kotak Mahindra Pension Fund | 20.79\% | 13.96\% |
Is voluntary PF good?
Voluntary Provident Fund is a great option as it offers guaranteed returns and it is deducted directly from the salary. The employees don’t have to look at other tax-saving investment options as VPF itself offers tax deductions, considering they are willing to wait until the lock-in period is over.
Is VPF tax-free?
Taxation of VPF proceeds The VPF contributions too enjoy the same tax norms that EPF contributions do. The taxpayers can deduct up to Rs 1,50,000 a year by investing in VPF. The interest earned on VPF is tax-free and withdrawals made after a period of five years are also made tax-exempt.
Is VPF completely tax free?
Is VPF good investment?
The VPF contributions too earn the same returns that the employee’s and employer’s contributions earn. It is for this reason that VPF is considered a very attractive option to invest in. The current interest offered on VPF contributions is 8.5\%, which is much higher than that of the Public Provident Fund (PPF).
Should I invest in NPs or EPF or PPF or VPF?
Hence one gets better returns in NPS as compared to EPF, PPF and VPF. But NPS withdrawals are not tax free while EPF, PPF and VPF withdrawals are tax Free. Mutual Fund / SIP are a better investment options available if you have sufficient time horizon (atleast 7yrs+). All EPF,PPF,VPF are debt investment tools. Returns in all will be at par.
What is the difference between EPF and PPF?
PPF is a government scheme meant for un-organized sector / non-salaried employees. Anyone can contribute to PPF account and get safe and assured returns. PPF currently has a higher rate of interest compared to EPF interest rates. Here is the quick comparison of the features of these 3 schemes.
What are the advantages of the NPS?
NPS offers an advantage of choosing investment in debt and equity both. Hence one gets better returns in NPS as compared to EPF, PPF and VPF. But NPS withdrawals are not tax free while EPF, PPF and VPF withdrawals are tax Free.
Are maturity proceeds from EPF/VPF/PPF taxable?
Maturity proceeds from EPF/VPF are tax exempted only if the employee has serviced the company for a continuous period of 5+ years. If he/she quits before completing 5 years, then the maturity returns would attract some tax. PPF returns on the other hand are tax free.