India, Feb. 3 -- The Employees' Provident Fund Organisation (EPFO) has welcomed the rationalisation of the income-tax framework governing recognised provident funds, aimed at aligning tax provisions with the statutory structure under Employees' Provident Funds and Miscellaneous Provisions Act, 1952.
Currently, differences in eligibility criteria, investment patterns, and employer contribution limits between income-tax rules and EPF provisions have led to compliance challenges and avoidable litigation. The latest changes seek to remove these inconsistencies.
Key Highlights:
• Exemption: Recognition under Income Tax Act, 2025 will now be available only to provident funds that have secured exemption under Section 17 of the EPF Act.
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