Cheer for middle income salaried class? VPF limit for tax-free interest may be hiked from Rs 2.5 lakh

The government is considering raising the VPF limit for tax-free interest under EPFO to incentivize savings among lower-middle and middle-income salaried individuals. The current cap, introduced to prevent high-income earners from using this provision, taxes interest on contributions exceeding Rs 2.5 lakh.