Retirement Planning: If you want to create a big fund in old age, then invest money in these 3 schemes and save tax..


In the initial years of employment, people do not take retirement planning that seriously. We think that we will start in the next few years, but it is easy to understand that the earlier you start investing, the more money you accumulate in old age, and you do not have to worry about the future. And it is not that you need to do any separate planning for this. There are many investment options that are giving you good returns now and you can also avail of tax exemption on them. Investing in Voluntary Provident Fund (VPF), ELSS or Public Provident Fund (PPF) can give good profits. Today we are giving you complete information about these 3 schemes.


Voluntary Provident Fund (VPF)
Only 12 percent of the basic salary can be contributed to EPF. But, there is no limit to investing in VPF (Voluntary Provident Fund). Meaning, that if the employee increases his contribution to the provident fund by keeping his in-hand salary low, then this option is called VPF. In VPF, 8.1 percent interest is being given like EPF. This scheme is an extension of EPF. Only employed people can open it. 100 percent of the basic salary and DA (Dearness allowance) can be invested in it.

What to do for VPF?
You will have to contact the HR or finance team of your company. Contribution will have to be requested in VPF. Once processed, VPF will be linked to your EPF account. No separate account of VPF is opened. VPF contribution can be revised every year. However, the employer is not obliged to invest in VPF. The employee can only increase his contribution.

Know these things about VPF
If you change jobs, you can easily transfer this account. The loan is also available on this. Loans can also be taken for children's education, home loans, and children's marriage. For partial withdrawal of the amount from the VPF account, it is necessary for the account holder to work for 5 years. If it is less than 5 years then tax is deducted. The entire amount of VPF can be withdrawn only on retirement. VPF gets the benefit of tax deduction under Section 80C of the Income Tax Act. The money received on investment, interest, and maturity (EEE) is completely tax-free. This scheme is very good for retirement planning.

ELSS- Equity Linked Savings Scheme
42 mutual fund companies run tax saving schemes in the country. Every company has ELSS to save income tax. It can be purchased online or from an agent. To save income tax, a time investment limit is a minimum of Rs 5 thousand and if you want to invest every month then you can start investing a minimum of Rs 500 per month. In this, a maximum tax exemption of Rs 1.5 lakh can be availed, but there is no limit on maximum investment.

Public Provident Fund-PPF
Public Provident Fund (PPF) This scheme can be opened anywhere in a bank or post office. Transfer can also be made to any bank or post office. Only Rs 500 is enough to open it. It is necessary to deposit Rs 500 at one time every year. A maximum of Rs 1.5 lakh can be deposited in the account every year. This scheme is for 15 years, due to which money cannot be withdrawn in between. But, after 15 years it can be extended for 5-5 years.


Where should one invest?
There is a facility for getting tax exemption on investment in all three options. But, still, all three are schemes with different benefits. If you are employed then it would be right to invest in VPF. Because from here you will get more interest than PPF and ELSS. At the same time, if you can take some risk then ELSS is a better option for them. Money should be invested in this through SIP, in which investment is made every month. This reduces the risk of investment and increases the chances of getting good returns. At the same time, if you want to stay away from market risk then it would be right to invest in PPF.
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