Employer Contribution to EPF ! Let's understand the tax treatment in New Tax Regime
Автор: Rajsv Finance India
Загружено: 2026-01-06
Просмотров: 83
Описание:
📌 Employer’s EPF Contribution – Tax Treatment
✅ Not a deduction you claim in ITR: There is no separate deduction you can claim for your employer’s EPF contribution under the new tax regime. Unlike some other contributions (e.g., employer’s NPS under Section 80CCD(2)), EPF employer contributions do not give a deduction that you list in your return.
✅ But it is exempt from tax in your hands — meaning:
Your employer’s contribution to EPF up to 12% of basic pay + DA is not included in your taxable income. It remains exempt even under the new regime.
This exemption applies subject to the overall limit of ₹7.5 lakh per year for employer contributions to recognised retirement funds (EPF + NPS + superannuation). If the total employer contribution exceeds ₹7.5 lakh in a year, the excess becomes taxable.
📌 Employee’s EPF Contribution
❌ Not deductible under the new tax regime because Section 80C deductions (which covered EPF contributions) are generally not allowed when you opt for the new regime.
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