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What are the alternatives to EPF on post tax return basis
Taxability of interest earned on EPF contributions will not make EPF an unattractive vehicle
In the latest budget, interest earned on an employee’s annual contribution to the Employees Provident Fund above ₹2.5 lakh a year is proposed to be taxed at the applicable tax slab. As a result, VPF which was hitherto a popular investment option for many employees with assured safety and tax-free returns, may no longer be the favourite investment option. In such a scenario, what alternatives do you suggest for employees who were investing more than ₹2.5 lakh in EPF? Please suggest investments that could be in SIP mode with similar post tax returns as the EPF, which are completely safe.