What is the VPF taxable interest limit?

From FY 2021-22, interest earned on employee PF contributions above ₹2.5L/year (or ₹5L/year if no employer contribution) is taxable. This applies to EPF + VPF combined employee contributions only.

How much VPF should I contribute for maximum tax benefit?

Calculate: Tax-free employee contribution limit = ₹2.5L - Your existing EPF contribution. If your EPF contribution is ₹1L/year, you can contribute up to ₹1.5L/year in VPF tax-free. Beyond this, VPF interest is taxable.

Is VPF better than PPF for tax-free returns?

VPF currently earns 8.25% vs PPF's 7.1% — both EEE. VPF is only available to EPF-enrolled (salaried) employees. For high earners who want guaranteed, higher-than-PPF EEE returns, VPF is superior (within the ₹2.5L threshold).

VPF Salary Sacrifice Optimizer | Tax-Free EPF Limit CalculatorFY 2026-27

Optimize your VPF contributions. Calculate the ₹2.5L and ₹5L taxable interest thresholds to maximize tax-free EPF/VPF growth.

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Quick Summary: VPF Salary Sacrifice Optimizer | Tax-Free EPF Limit Calculator

A VPF (Voluntary Provident Fund) Salary Sacrifice Optimizer calculates the maximum employee PF contribution that qualifies for tax-free interest — ₹2.5 lakh/year if employer contributes, ₹5 lakh/year if not — and computes the optimal VPF rate to stay within the EEE threshold.

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Regulatory Disclaimer · FY 2026-27

Last verified May 2026

Statutory Disclosure

Nature:Calculator platform and is NOT a SEBI-registered Investment Adviser. All calculations are indicative.

Risk:"Investments in securities market are subject to market risks. Read all related documents carefully before investing."

Consult a SEBI-registered IA or CA for personalised advice.

9 out of 10 traders in F&O incurred net losses (SEBI 2023). Tax estimates based on IT Act 2025. Trezoriq is not liable for financial decisions based on results.