How to change PF contribution to ₹1800(min contribution) from current 12% basic pay.
My understanding is since I am under new tax regime and PF is not a tax deductible anymore. I would like to maximise my in hand salary & invest the extra amount in some other investment instruments.
Who said PF is not part of tax deduction?
Employer PF contribution is not taxable till 7.5L. So the 12% basic pay that employer also pays to your PF, no tax is deducted on it.
Once you shift to 1800, then that portion will attract tax and you shall get more taxed.
@SafeTalking62 If you want to save more tax, don't change it. Rather, you shud get rid of all allowances like HRA, LTA, Driver etc and have all your salary in Basic+PF only.
Is your nps is not getting deducted from this
NPS is different. Its deductible under new tax regime but my question was about EPF.
Check with your HR team. In most cases, they will not change it since it also helps them save taxes as it comes as part of your compensation.
In rare cases, they might reduce it.
Okay so you mean it is discouraged among HRs?
EPF is such a messy scheme by GOI... Oh god, so many clauses, so much drama...
Only benefit- it's a bit secure..
