EPF contribution: Existing vs new income tax regimeTax break that you can claim in new tax regimeTax-exempt limit on employer's contributionSalaried employees are required to contribute 12 per cent of their salary (basic plus dearness allowance) to their Employees' Provident Fund (EPF) account. Employer is also required to make a matching contribution to an employee's EPF account Budget 2020 has proposed a new tax regime which comes with lower income tax rates but requires an individual to forgo most commonly availed 70 tax-exemptions and deductions . The new tax regime is optional in nature. This means that an individual having no business income can choose between any tax regime every financial year as per his/her convenience.In the new tax regime the tax benefit available on employee's own contribution to EPF account is impacted.In the existing tax regime, an employer's contribution up to 12 per cent of an employee's salary is exempted from tax. Therefore, under the new tax regime you will not be able to claim tax benefit for your contribution to EPF account.In the new tax regime, all is not lost.

Source: Economic Times February 21, 2020 10:06 UTC