Big PF Rule Change: 7.5 Lakh Tax-Free Limit Brings Relief to Salaried Employees

• Central government proposes significant changes to PF rules in Budget 2026-27 to simplify retirement savings tax regulations.
• Income tax rules for PF trusts will align with the EPF Act 1952, ensuring uniform regulations for employees, employers, and trusts.
• A new Rs 7.5 lakh tax-free limit for employer contributions to PF, Superannuation Fund, and NPS annually is introduced.
• Contributions exceeding Rs 7.5 lakh will be considered employee income and taxed, providing a clear limit over complex percentage-based rules.
• This change offers relief to most salaried employees and simplifies compliance for companies and PF trusts, strengthening the retirement system.