Private PF Gets EPFO-Like Rules, What It Means for Employees

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PF Income Tax: The budget proposes reforms in the rules of provident fund trusts, which used to be exempt under the income tax rules. Now these trusts will be completely brought at par with the rules of the Employees Provident Fund Organisation (EPFO). This will eliminate any confusion for private employees regarding the provident fund.

Private PF rules will be similar to those of the EPFO. The retirement fund body EPFO ​​said on Tuesday that the proposal to simplify and unify the income tax rules in the budget is very beneficial. According to them, this will better serve the interests of people associated with PF and will bring uniformity in all rules.

In this regard, the Ministry of Labor stated that the Union Budget (2026-27) has integrated the income tax rules applicable to Recognized Provident Funds with the legal and administrative regulations contained in the EPF Act 1952 and the EPF Scheme 1952. Until now, there was a difference between the income tax exemption rules for private PF trusts and the provisions of Section 17 of the EPF Act. This budget proposal will eliminate this difference.

According to the EPFO, investment rules differ between the Income Tax Act and the EPFO. Similarly, the employer contribution limits are not the same between the two laws. These differences create confusion and unnecessary legal disputes. Now, according to the new rules, only those PF accounts that are exempted under Section 17 of the EPF Act 1952 will be recognized under the Income Tax Act.

Under Section 17, the employer can avail of exemption from filing monthly returns with the EPFO ​​and can manage its PF funds on its own. The PF Trust’s investment norms will continue to be based on the existing EPF framework. The previously strict 50% limit on investments in government securities has now been removed, making investment options more flexible.

About the Author

Sweta Mitra

Working in the media for last 7 years. The journey started in the year 2018. For the past few years, my working experience has been in Bengali media. Currently working at Timesbull.com. Here I write like Business, National, and Utility News. My favorite hobbies are listening to music, traveling, food,...

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SwetaMitra@timesbull.com Author at TimesBull TimesBull
Working in the media for last 7 years. The journey started in the year 2018. For the past few years, my working experience has been in Bengali media. Currently working at Timesbull.com. Here I write like Business, National, and Utility News. My favorite hobbies are listening to music, traveling, food, and books. For feedback - timesbull@gmail.com
Sweta Mitra - Author at TimesBull
About the Author

Sweta Mitra

Sweta Mitra - Author at TimesBull

Working in the media for last 7 years. The journey started in the year 2018. For the past few years, my working experience has been in Bengali media. Currently working at Timesbull.com. Here I write like Business, National, and Utility News. My favorite hobbies are listening to music, traveling, food,...

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