India, Feb. 3 -- The Government of India has issued a release:
Recognized Provident Funds are governed by Schedule XI of the Income Tax Act, 2025. At present, there is a divergence in eligibility for exemption under Income-tax provisions and Section 17 of the Employees' Provident Funds and Miscellaneous Provisions Act,1952. Further, the pattern of investment notified under the Income Tax provisions and EPFO also varies. The limits of the employer's contribution have not been aligned in the two enactments. These differences create confusion and give rise to avoidable litigation.
The Union Budget (2026-2027) has aligned the income-tax framework governing recognized provident funds with the statutory and administrative provisions of the Empl...