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Options
- A
No tax benefits; interest and withdrawals are taxable
-
Tax benefits on contributions; income and withdrawals are exempt up to limits
Correct answer
- C
No tax benefits; only withdrawals are exempt
- D
Contributions are exempt; withdrawals are taxable
Why this is the answer
Contributions and interest on EPF are exempt, and withdrawals are tax-free within specified limits, offering significant tax benefits.
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