Want to know few info regarding Voluntary EPF

POSTED BY BISWAJIT DASH ON December 14, 2011 12:04 am COMMENTS (2)


I am interested in Voluntary EPF. But I would like to know 3 things before investing. Can anyone answer my queries?

1) How much interest I would receive from this FY?
2) Can I withdraw the voluntary contribution amount to PF without swiching my present company? If yes, will I face any deduction in the interest rate?
3)Is it required to be in the same company for 5 years to withdraw Voluntary PF? (similar to EPF)

Thanks & Regards,

2 replies on this article “Want to know few info regarding Voluntary EPF”

  1. Dear Biswajit Dash, treat investments in to your PF account for retirement only. if you want to redeem in between, please do not go for VPF mode. it’s advisable to go for other products like Bank FDs, PPF, Debt MFs, Company Deposits etc. for such short term debt investment needs.



  2. 1) It is being mooted to decrease the interest to 8.25% (from last years 9.5%). It is not confirmed yet. EPFO board is meeting on Dec 23 to finalize this.
    2) You cannot withdraw until you complete 5 years of service (some sources say 7 years) only for purposes like marriage, education, medical treatment etc. This is tax free and interest free if you do not wish to repay. If you want to contribute this amount back to PF account you need to pay interest (dont ask the rationale!).
    3) No. If you leave your current company and it is not 5 years since the the contribution started both EPF and VPF will be taxed at your current tax slab.

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