Venture capital investments remain moderate at $115 million; Prosus receives CCI approval for investment in Navi

Despite the AI boom stimulating data center expansion, local communities in the UK are expressing concern over noise pollution, emissions, and reduced sunlight, highlighting the environmental costs of AI development. Hundreds of such facilities are planned across the UK, fueling a debate over who benefits and who bears the costs.

Concurrently, the discovery of two critical vulnerabilities in PHP has put millions of websites and servers at risk of cyberattacks. These flaws went unnoticed for years, triggering an urgent patching campaign. Experts warn that AI could facilitate the discovery and exploitation of such weaknesses.

In the AI sector, the company Block, co-founded by Jack Dorsey, unveiled the Dessa voice model. This model is capable of capturing human nuances, such as pauses and laughter, while simultaneously listening and speaking on consumer hardware. However, it is currently undergoing testing by AI security researchers before a wider release.

Other news reports indicate that five companies plan to conduct IPOs between October 26 and 29 to raise nearly 2,600 crore rupees. Among the companies participating in the IPO process is Swara Baby Products, supported by Brainbees Solutions, the parent company of FirstCry, which is expected to announce its launch plans by November 5. These upcoming listings occur amid active primary market activity, as 104 companies have raised over 1.4 lakh crore rupees through IPOs in 2026 to date.

Key takeaways from the Indian startup market

In the third week of October, venture funding for Indian startups sharply declined due to a slowdown in deal activity and a shortage of large transactions. Startups raised $96 million across 15 deals, lower than the $180 million recorded the previous week. As major funding rounds remain limited, the ecosystem is hoping for a revival in 2027.

It is emphasized that India's deep tech ecosystem is gaining momentum thanks to improved government support, policy initiatives, and access to capital. Nevertheless, challenges persist related to talent shortages, funding gaps, and weaknesses in the manufacturing ecosystem. According to industry experts at the TechSparks 2026 event, Indian deep tech startups need to build self-confidence and focus on global markets for scaling.

For working individuals, it is just as important to invest funds correctly as it is to save money for retirement. If you regularly contribute to the Employees Provident Fund (EPF), you can increase your savings through the Voluntary Pension Fund (VPF). Under this program, employees can contribute an amount in addition to the mandatory contribution to the PF. Currently, the EPF yields an annual interest rate of 8.25%. However, before increasing investments in VPF, it is necessary to understand tax issues, withdrawal periods, and whether this option meets your financial needs.

What is VPF and how does it work?

The Voluntary Pension Fund is a voluntary savings scheme linked to the Employees Provident Fund. Employees have the option to contribute more than their standard PF contribution. This allows for an increase in the total amount accumulated for retirement. The advantage is that the money is automatically deducted from the salary and deposited into the PF account, eliminating the need for additional monthly investments. Nevertheless, the main goal of VPF is long-term savings accumulation for retirement, not achieving high profits in a short time. The same interest rate as for EPF, set by the government, is applied.

Who might benefit from VPF?

VPF is particularly useful for employees who aim for regular long-term savings and do not wish to invest a significant portion of their savings in schemes dependent on stock market fluctuations. It may be interesting for employees who hold large sums in Fixed Deposits (FD), as one can compare the potential return of VPF with the return of FD after taxes, while considering the withdrawal conditions and tax rules of both instruments. VPF is also considered by employees approaching retirement, such as those aged 40 or 50, who want to regularly top up their fund, although the decision must be made considering the remaining time until retirement, current savings, and future expenses. Furthermore, for those who find it difficult to manage monthly personal investments, the automatic deduction of funds into VPF can help establish a saving habit. However, it should be remembered that if you have expensive debts, lack an emergency fund, or require large sums in the near future, these more pressing issues must be addressed first.

What does the limit of ₹2.5 lakh mean?

Before making additional contributions to VPF, it is important to understand a key tax rule. If both the employee and the employer contribute to the PF, tax on the interest related to the total annual employee contribution to EPF and VPF may exceed ₹2.5 lakh. This tax is not applied to the entire additional amount but to the interest associated with it according to established rules. It is important to note that the ₹2.5 lakh limit applies only to the employee's contributions and does not include the employer's contributions. If the employer does not make contributions to the employee's PF, a separate limit of ₹5 lakh may apply to the interest on the employee's contributions. The annual limit of ₹2.5 lakh is equivalent to approximately ₹20,833 per month. Nevertheless, the actual calculation must be based on the employee's total contribution for the entire financial year. The mandatory EPF contributions and the amounts contributed to VPF must be summed up to determine if the limit has been exceeded.

How is the tax calculated with an example?

Suppose the employee's total contribution for the financial year was ₹3 lakh, exceeding the ₹2.5 lakh limit by ₹50,000. This does not mean that tax will be levied on the entire ₹50,000. The tax calculation will be done according to the rules, based on the interest related to this additional contribution. Assuming the maximum employee tax rate is 30% and the interest rate is 8.25%, the post-tax return could be around 5.78%. This is an approximate calculation that does not include fees and other applicable factors. The actual tax will depend on the employee's status and prevailing regulations. Therefore, before contributing additional funds to VPF, one should not only look at the announced interest rate; one must understand what amount may be subject to taxation.

Are there tax benefits on funds contributed to VPF?

Automatic tax benefits on funds contributed to VPF are not provided. The benefit in the form of a deduction for the contribution depends on the chosen tax system and the relevant conditions for the employee. Therefore, before increasing investments, it is necessary to find out which tax system you report under and what deductions are available to you. It is important to distinguish between the tax on interest related to contributions and the deductions received at the time of investment; these two aspects should not be confused.

When can funds be withdrawn from VPF?

VPF funds are part of the EPF account, so they cannot be withdrawn at any time, like from a regular savings account. To withdraw funds, one must consider the current EPF rules, eligibility criteria, length of service, and reason for withdrawal. In October 2025, the Central Council of Trustees of the Employees Provident Fund (EPFO) approved a simplification of partial withdrawal rules and set the minimum service period for eligibility at 12 months. This structure provides for various needs, such as illness, education, marriage, housing, and special circumstances.