Key Points
When choosing an investment, consider factors like lock-in periods, withdrawal conditions, taxes on interest, and maturity amounts..
For high-income earners, the taxability of returns is important..
Similar to the PPF, the SSY account follows the EEE tax status, meaning the invested amount, interest earned, and maturity amount are all tax-exempt...
However, starting from the fiscal year 2021-22, if an employee's contributions to EPF and VPF accounts exceed Rs 2.5 lakh in a fiscal year, the interest earned on the excess amount becomes taxable..
Additionally, from the fiscal year 2020-21, if the employer's combined contributions to EPF, National Pension System (NPS), and superannuation funds exceed Rs 7.5 lakh annually, the surplus amount is taxable in the hands of the individual recipient..
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