EPFO Hails Budget's Income Tax Rationalisation for Private PF Trusts

• EPFO welcomes the Union Budget's (2026-2027) proposal to streamline the Income Tax regime for provident fund trusts.
• The move aims to align the income tax framework with the Employees' Provident Funds and Miscellaneous Provisions Act, 1952.
• Existing divergences in exemption eligibility, investment patterns, and employer contribution limits between Income Tax provisions and EPFO norms caused confusion and litigation.
• Key changes include making Income Tax recognition dependent on Section 17 exemption, aligning investment norms with EPF framework, and setting a Rs 7.5 lakh annual monetary ceiling for employer contributions.
• This rationalisation is expected to benefit stakeholders by harmonising norms and reducing complexities.

Why It Matters: EPFO praises the Budget's rationalisation of Income Tax rules for private PF trusts, ensuring better alignment and clarity.