EPF Deduction in New Tax Regime

[Siddarth Lokesh]

Hi Experts

Please let me know if there is any deduction available for Employer Provident Fund in New Tax regime.
I am filing my returns for FY 2024-25 hence would like to know if I can claim any exemption on EPF to calculate total taxable income.

Thanks in advance
Siddarth

 

[TaxWiser]

Hi Experts

Please let me know if there is any deduction available for Employer Provident Fund in New Tax regime.
I am filing my returns for FY 2024-25 hence would like to know if I can claim any exemption on EPF to calculate total taxable income.

Thanks in advance
Siddarth

You cannot claim your own EPF contribution as a deduction under the New Tax Regime. Employer contributions to EPF(up to the specified limits) remain exempt from tax and you do not need to claim this separately in your return. Also, Interest on moderate annual contributions remains exempt, but excess is taxable.

 

[Siddarth Lokesh]

You cannot claim your own EPF contribution as a deduction under the New Tax Regime. Employer contributions to EPF(up to the specified limits) remain exempt from tax and you do not need to claim this separately in your return. Also, Interest on moderate annual contributions remains exempt, but excess is taxable.

Thanks for your quick response. As I've understand contributions exceeding 7.5L would still be taxable. However what I wanted to know is, My income is approx 7.9 L and this is without any deduction.

I only have EPF and VPF contributions hence I wanted to know If there is any deduction I can claim to bring down by Taxable income under 7.5L. I've actively been checking on the same and n ilI didn't see any EPF related deduction in New Tax regime. Hence please advise in this case.
Thanks

 

[TaxWiser]

Thanks for your quick response. As I've understand contributions exceeding 7.5L would still be taxable. However what I wanted to know is, My income is approx 7.9 L and this is without any deduction.

I only have EPF and VPF contributions hence I wanted to know If there is any deduction I can claim to bring down by Taxable income under 7.5L. I've actively been checking on the same and n ilI didn't see any EPF related deduction in New Tax regime. Hence please advise in this case.
Thanks

If you want to bring your taxable income below ₹7.5 lakh (to, for example, benefit from a lower tax rate or a rebate), you may need to consider tax-eligible deductions under the old regime, not the new. Under the new regime, only a limited list of deductions/exemptions are permitted (such as employer NPS contribution under Section 80CCD(2) and standard deduction for salaried individuals, among a few others), but not employee EPF/VPF.