unexempted trust

Employees should understand their employer's EPF setup for optimal tax benefits. Contributions to EPF accounts managed by EPFO or an exempted trust offer advantages. Unexempted EPF trusts have tax implications. Employers' role in managing EPF schemes is crucial, affecting tax benefits. Knowledge of the EPF withdrawal process and account access enhances financial planning.

NEW DELHI: Private companies will have to pay from their pockets to give 9.5 per cent return on the Employees Provident Fund from their trusts.

Those companies, whose employees' fund is managed by private trusts are called Exempt Organisations and who- se fund is managed by the EPFO's trust are Un-Exempt ones.

Budget 2025 income tax: Recognizing the contributions of the middle class and with an objective to eventually phase out the old tax regime, various changes have been introduced in the new tax regime. The basic exemption limit has been increased from INR 3 lakhs to INR 4 lakhs.

Government has allowed retirement fund body EPFO to invest 5 per cent of its corpus in exchange traded funds which will result into an inflow of around Rs 5,000 crore into the stock markets during this fiscal.

In March 1996, the EPS Act was amended to allow members to raise pension contribution to 8.33% of full salary (basic + DA) irrespective of what the salary is. This raised the pension, multiple times. Courts ruled that employees must be allowed to raise their pension contribution whenever they wish to.

The EPFO has floated a new option for subscribers who couldn’t opt for higher pensions earlier. Under the new option, employees will have the option to let their employers deduct a sum equal to 8.33 per cent of the actual basic salary towards the EPS pension.