# EPF interest above Rs 2.5 lakh contribution limit may be taxed 2026-08-06T22:01:00+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 1 independent outlet Interest on EPF contributions is not always tax-free for high contributors, Mint reports. If an employee’s combined annual contributions, including the employer’s 12% share and any VPF contribution, exceed Rs 2.5 lakh, interest on the excess becomes taxable at the applicable slab rate. The rule has applied since 2022. VPF lets employees save more than the mandatory EPF amount, without a matching employer contribution. Contributions up to Rs 1.5 lakh may qualify for a Section 80C deduction. Withdrawals after five years are generally exempt, while earlier withdrawals may be taxed. EPF contributions are ordinarily capped at Rs 1,800 each a month for employer and employee, based on the Rs 15,000 monthly wage ceiling. Contributions above it are voluntary unless rules permit otherwise. ## Coverage - livemint.com Tags: EPF, Income tax, personal finance, retirement savings, VPF Canonical: https://indianopinion.org/epf-interest-above-rs-2-5-lakh-contribution-limit-may-be-taxed/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/epf-interest-above-rs-2-5-lakh-contribution-limit-may-be-taxed/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.