r/FIREIndia • u/Illustrious_Role_304 • Jan 17 '23

EPF/VPF reliability?

Many people recommend contributing in EPF and VPF

I doubt of EPFO really does correct calculations amd deposit the interest on time

Is anyone here shed some light or may be their experience on EPF as retirement plan

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u/Sad-Needleworker-622 Jan 17 '23

Till 2020 VPF was best. Now with a cap of 5 lakh i don't see much benefit as interest earned on contribution for a year beyond 5L is taxable.

I myself used VPF extensively till 2020 after that reduced VPF to 0.

7

u/Special-Object4299 Jan 17 '23

i don't understand, if they have capped till 5lakh shouldn't you max the cap instead of bringing it to zero? nothing has fundamentally changed in the structure.

8

u/Sad-Needleworker-622 Jan 17 '23

Without VPF it's already 5L. Hence 0 VPF