Budget 2026: PF Rules Simplified, TDS Reforms Expanded for Easier Compliance

• Employers can now claim deductions for employee PF/ESI contributions deposited by the income tax return filing due date, replacing fund-specific deadlines.
• A uniform annual ceiling of Rs. 7.5 lakh is set for employer contributions across all retirement funds; amounts exceeding this will be taxable.
• The dual recognition framework for provident funds is abolished; only funds exempt under Section 17 of EPF & MP Act, 1952 will be 'recognised'.
• TDS exemption for interest from Motor Accident Claims Tribunals and expanded definition of 'work' for TDS applicability.
• Small taxpayers get a simplified electronic process for lower/nil TDS certificates; TAN no longer required for resident individuals/HUFs buying property from non-resident sellers from Oct 1, 2026.

Why It Matters: Budget 2026 streamlines PF contributions and TDS rules, reducing compliance burden for employers and taxpayers.