Retirement · component
Employer provident fund contribution
Employer PF is tax-free within limits, but very large employer contributions become taxable.
How the taxable value is determined
Employer contributions to recognised PF, NPS and superannuation are taxable to the extent the aggregate exceeds ₹7,50,000 in a year, along with accretions on the excess.
Regime availability
- Old regime
- Available
- New regime
- Available
Documentation to keep
Form 16 Part B and PF annual statement.
Legal basis: Section 17(2)(vii) and (viia), Income-tax Act
Frequently asked questions
Is employer provident fund contribution taxable in India?
Employer PF is tax-free within limits, but very large employer contributions become taxable. Employer contributions to recognised PF, NPS and superannuation are taxable to the extent the aggregate exceeds ₹7,50,000 in a year, along with accretions on the excess.
Does the exemption apply under the new tax regime?
Under the old regime this treatment is available; under the new regime it is available. Legal basis: Section 17(2)(vii) and (viia), Income-tax Act.
What records should I keep for employer provident fund contribution?
Form 16 Part B and PF annual statement.
Related tools & guides
Reflects provisions in force for FY 2026-27; verify against the latest government publications (incometax.gov.in). Information, not tax advice.