New Delhi, June 18 -- The Employees' Provident Fund Organisation (EPFO) operates India's provident fund and pension fund scheme, through joint contributions from both employers and employees. You receive the lump sum corpus at retirement.

You are eligible to open an EPF account if your basic pay and dearness allowance are up to Rs.15,000, and you can add the VPF option if the basic pay and DA exceed Rs.15,000 per month. It provides 8.25% interest (this quarter) for EPF and voluntary provident fund (VPF) contributions by salaried citizens.

In terms of tax benefits, annual employee contributions up to Rs.1.5 lakh are exempt under Section 80C of the old tax regime. Employers' contribution of up to 12% (below Rs.7.5 lakh) is exempt under bo...