VPF contribution to avoid tax as per new income tax law beyond 2.5 Lakh

Max VPF a private salaried class employee can claim to avoid tax as per new income tax law. Like last year Income Tax department created a new law according to which if contribution to PF is more than 2.5 Lakh then the amount beyond this 2.5L will be taxable. Something like that.
So please confirm me how much one can contribute beyond PF amount so that access VPF will not fall in taxable category.


Thanks

Provident Fund and Voluntary Contribution of PF are exempted within the limits of 80C. 80C has a capping of Rs 1,50,000. As such even if you contribute more than Rs 150000 towards PF, the tax benefit will be restricted only to Rs 1,50,000 only. This shall include PF, Life insurance premium, housing loan principal repayment, fixed deposit for more than 5 years' duration and a few other investments. Therefore, if you do not have other investments coming under the exemption admissible under 80C, ie, housing loan, life insurance, FD etc, then by contributing to PF for any amount higher than Rs 150000 will not give you any benefit in respect of income tax.

Hi Madhu.T.K

I am asking for the rule govt came last year in which pf/vpf more than 2.5 L amount would be taxable.

That is as per Income Tax Act. I think it is applicable to interest on PF contributions and not contribution as it is and the entire employer's contribution will still be non taxable. Please check with Income Tax sites for details