Hi Hema Latha,
Voluntary Provident Fund (VPF):
Voluntary provident fund or VPF is an extension of your Employee’s provident fund (EPF).
It is a safe option wherein you can contribute more than the PF ceiling of 12% that has been mandated by the government. This additional amount enjoys all the benefits of PF except that the employer is not liable to contribute any extra amount apart from 12%. The biggest advantage of a VPF account is that investments in it are made from your pre-tax income. Please note that the maximum contribution towards VPF is 100% of your Basic + DA. It is eligible for deduction under Section 80C of the Income Tax Act, subject to a maximum of Rs1 lakh.
Refer EPF Scheme, 1952 para 29 (2 Point)
Regards,
Narayan