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@houstonpatty Also, some people are going the extra mile to save in VPF. They are penalized too

@resjudicata This explains the why to tax. But this doesn't explain the 2.5 lakh limit. I think EPF+VPF was a good tool to generate retirement corpus for middle class folks, and 2.5 lakh PA seems to be too less. May be 5 lakhs per annum be better ?