Who Form 8865 Voluntary 2024

Music friends, welcome to Nourishment Academy! In this video, we will discuss the Waters Voluntary Provident Fund and how it differs from the EPF (Employee Provident Fund). We all know that within various asset classes, the debt category is the safest, with less risk involved. It is important to note that risk and return go hand-in-hand, meaning that lower risk investments will generate lower returns. However, regardless of the category, our intention is to achieve the best post-tax returns. Within the debt category, the EPF is ideal as it holds a Triple E status. This means that investment returns and withdrawal amounts are completely tax-free. The EPF currently enjoys an interest rate of 8.65% for the financial year 2017-2018, making it a preferred choice as other debt instruments offer lower returns. For example, fixed deposits currently earn an interest rate of about 6-7.5% per annum, which is taxable. Even a half percent increase in returns can make a significant difference in the long term. The EPF is a defined contribution, allowing you to contribute a maximum of 12% of your basic salary to your EPF account. To take advantage of the additional interest rate offered by the EPFO on your deposits, you can contribute any amount exceeding 12% of your basic + da to your Provident Fund. This can be done through VPF (Voluntary Provident Fund), which enjoys the same interest rate as the EPF. The remaining 88% of your basic + da can be contributed to your Provident Fund. However, do keep in mind that it is not compulsory for your employer to match your additional VPF contributions. Only salaried employees of organizations identified by the EPFO can opt for VPF. Self-employed individuals and employees of the unorganized sector cannot avail of the EPF. If you decide to make voluntary contributions...