VPF discontinuity

Sanjeev (Tax Payer) (116 Points)

17 April 2020  

Hi,

I have an EPF account operative for the past 15 years. Now I plan to go for Voluntary Provident Fund (VPF) contributions w.e.f FY 2020 - 21

If I stop my VPF contributions from next FY (2021-22), what are the tax implications on the interest earned for my VPF contribution for the current FY (2020-21) ?

Please note that I do not want to withdraw the VPF balance anytime going forward, but may plan to stop contributing to VPF next year. and let the VPF contributions be there in the account.

Please elaborate on the tax implications.