Is PF Included in 80C?

Wondering about does PF come under 80C? Yes, contributions made towards the Employees' Provident Fund (EPF) are included in Section 80C of the Income Tax Act, 1961, for tax deduction purposes in India.

Does EPF Comes Under 80C?

Yes. Section 80C provides for various deductions from gross total income, and EPF contributions are one of the eligible investments or expenses under this section.

• The total deduction available under Section 80C is capped at INR 1.5 lakh per financial year (FY). The employee's contributions towards EPF qualify for deduction under Section 80C.

• Contributions made by the employee towards the Voluntary Provident Fund (VPF), which is an extension of EPF, are also eligible for deduction under Section 80C, subject to the overall limit of INR 1.5 lakh.

• The employer's contribution to EPF is not eligible for deduction under Section 80C. It is exempt from tax under Section 17(2)(vii) of the Income Tax Act.

• While EPF contributions enjoy tax benefits during the contribution phase, the interest earned and the withdrawal amount may be subject to taxation under certain circumstances. However, withdrawals from EPF after five years of continuous service are usually tax-free.

• EPF contributions have a lock-in period, and premature withdrawals may attract penalties and tax implications. However, certain specified situations allow for partial or full withdrawals without tax implications.

Apart from EPF, Section 80C also covers various other investments and expenses such as Public Provident Fund (PPF), Equity Linked Savings Scheme (ELSS), National Savings Certificate (NSC), Sukanya Samriddhi Yojana (SSY), tuition fees for children, life insurance premiums, and home loan principal repayment, among others.

Your query about does PF come under 80C is solved.

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Wondering is PF included in 80C. Yes, the Provident Fund (PF) contribution is included in Section 80C of the Income Tax Act in India. Section 80C allows taxpayers to claim deductions for certain investments and expenses, including contributions made towards specified financial instruments, up to a maximum limit of Rs. 1.5 lakh per financial year.

• Employee Provident Fund (EPF): Contributions made by an individual towards their EPF account are eligible for deduction under Section 80C.

• Voluntary Provident Fund (VPF): Contributions made voluntarily by an individual towards their EPF account over and above the mandatory contribution are also eligible for deduction under Section 80C.

• Public Provident Fund (PPF): Contributions made towards a PPF account are eligible for deduction under Section 80C.

• Equity Linked Savings Scheme (ELSS): Investments made in ELSS mutual funds are eligible for deduction under Section 80C.

• National Savings Certificate (NSC), Sukanya Samriddhi Yojana (SSY), Senior Citizens Savings Scheme (SCSS), etc.

I hope this answered your query is 80C includes PF.

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