Your EPF money is complete tax free at the moment and going by the trends over the years, it is expected to stay the same. The total EPF amount that gets deducted from your salary every month is fully exempted from tax. Having said that, the interest your earn on your accumulated EPF money is also tax free.
Given EPF is completely exempted, there cannot be exemption limit and there for there is no tax deduction applied as well. So, those who are new to EPF tax rule wonder that is EPF taxable should now know that it is tax free.
If you are filling self assessed income tax return, you can also show PF withdrawal in income tax return. You can discuss with your CA for more information on that. Those who have retired and thinking whether there is any tax applicable on PF withdrawal after retirement, they should know that it is tax free as well.
According to EPF Act, 12% of an employee’s salary is deducted every month that gets accumulated in EPF account. This total deducted amount is tax exempted and you actually save this money for future. This is extremely beneficial for retirement planning and future course of action in terms of investment after retirement.