Sheen diminished for VPF, but not lost: Here's how should you invest?

Only PPF and Sukanya Samriddhi offer higher returns among govt-backed schemes

In the Budget for 2021-22, interest earned on contributions of above Rs 2.5 lakh a year to provident funds was made taxable. While post-tax returns from Employee Provident Fund (EPF) or Voluntary Provident Fund (VPF) contributions of above Rs 2.5 lakh will reduce, they still remain attractive compared to most other fixed-income instruments.

Better than most other govt schemes

Up to Rs 2.5 lakh, employees will continue earning tax-free returns of 8.5 per cent. For contributions exceeding this amount, a person in the 30 per cent tax slab will earn a post-tax return of 5.85 per cent.

Only one government-backed