Budget 2026: Major EPF Rule Changes Proposed, Simplifying Compliance

• Union Budget 2026 proposes significant changes to EPF taxation and compliance framework.
• Amendments aim to simplify employer compliance and rationalize TDS rules by modifying Schedule XI of the Income Tax Act, 2025.
• Employer contributions will now fall under an aggregate ceiling of Rs 7.5 lakh across PF, NPS, and superannuation, offering more flexibility.
• Employees will continue to enjoy tax-free employer contributions up to Rs 7.5 lakh; exceeding this limit will be taxed as perquisites.
• Company shareholders who are also employees will no longer face stricter PF limits, aligning with the framework for other employees.