New Delhi, Aug. 6 -- If you are a salaried employee in India, you must be contributing to Employees' Provident Fund (EPF) every month, while your employer also makes a matching contribution. This scheme is considered one of the safest retirement savings options because it offers tax benefits and allows your invested money to grow steadily through compounding over the years.

Because of these advantages, many employees assume that the interest earned on their PF balance is always always exempt from tax. However, a relatively recent tax rule may create confusion among employees, especially those who make higher voluntary contributions through VPF or contribute a large amount to their EPF account during a financial year.

The Voluntary Provi...