From the 150,000 limit u/s 80C, do I have to deduct my contribution to EPF ? Or can I invest 1.5 lac and claim EPF deduction as well separately?

[missionindia]

Am kind of confused. The IT Declaration portal in my company's site does not include any subheading for contributions to EPF. But some googling around shows me that my contribution to EPF and VPF needs to be deducted from the 1.5 lac limit.

Can I invest 1.5 lac + EPF as deduction? Or shall I invest 1.5 lac - EPF - VPF ?

 

[isika]

@missionindia invest 1.5 lac - EPF - VPF.

Also such small questions should go in biweekly thread or the discord server, to avoid overcrowding sub with simple questions. Hope you understand.

 

[missionindia]

@isika Sorry, and thanks.

 

[sixteeen7leven]

@missionindia 80c has the upper limit of 1.5 lacs. So if your EPF contribution for the year was 1.2 lacs. You can add 30k to VPF, life Insurance premium, NPS or elss funds. Not considering things like child education etc.

Plus, if you invest 50k more into your NPS account. You can stretch the limit to 2 lac.

Considering the fact that NPS is for retirement and not liquidity. It will be tax free, if your annuity is below the salary slabs at retirement. I consider it a very good product.

 

[brothernature]

@missionindia Invest in NPS tier1 for additional 50k

 

[uktom]

@brothernature And lock away the corpus till retirement after which only 60% is withdrawn while rest is forced annuity? No thanks.