Yes, EPF currently offers 8.1% for 2022-23. It is one of the highest interest rates among fixed income instruments. The EPFO also invests in equity markets through ETFs. It is a relatively small portion of a minimum
of 5% up to 15% of the EPF funds. The investment in the EPF Scheme gets a tax deduction up to a maximum of Rs 1.5 lakh per year under opt-out Section 80C of the Income Tax Act, 1961. It falls under the EEE (exempt
exempt exempt) category, where the accrued interest and the amount accumulated on withdrawal are tax-free. It makes EPF one of the most tax-efficient investments. However, if the employer’s contribution towards
employee’s EPF account, NPS and superannuation fund is more than Rs 7.5 lakh, the excess contribution will be taxable as a perquisite in the hands of the employee.