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ZippyJellybean
ZippyJellybean
Bosch

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.

26d ago
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ZoomyMuffin
ZoomyMuffin
Stealth25d

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.

ZoomyMuffin
ZoomyMuffin
Stealth25d

@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.

PrancingBiscuit
PrancingBiscuit
TCS26d

Is your nps is not getting deducted from this

ZippyJellybean
ZippyJellybean
Bosch25d

NPS is different. Its deductible under new tax regime but my question was about EPF.

CosmicRaccoon
CosmicRaccoon
Laid-off26d

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.

ZippyJellybean
ZippyJellybean
Bosch25d

Okay so you mean it is discouraged among HRs?

MagicalPancake
MagicalPancake
Cred26d

It’s only possible when u change to new company

JumpyPretzel
JumpyPretzel
Stealth26d

Then too not possible always. New company will not change ctc structure as per your wish.

SillyQuokka
SillyQuokka
Dell10d

EPF is such a messy scheme by GOI... Oh god, so many clauses, so much drama...
Only benefit- it's a bit secure..

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