An employee's contribution to Employees' Provident Fund over Rs 2.5 lakh will now attract tax on interest income earned on the excess amount. Those who voluntarily invest excess money in EPF will get hit. What are your alternatives? If you are risk-averse and in highest income-tax bracket, invest this excess amount in Public Provident Fund (PPF), which currently yields 7.1 percent tax-free interest. National Pension System's (NPS) debt funds have delivered around 10 percent annual returns over ten years. However, annuity income under NPS is taxable. If you are a disciplined investor, then invest some in open-ended equity mutual funds. But make sure you do not withdraw prematurely.