Under the new tax regime, income tax is zero up to ₹12,75,000 of gross income.
This means if your net taxable income is ₹12,00,000 (after ₹75,000 standard deduction),
you do not pay any tax.
This is because of the Section 87A rebate.
You get a rebate of ₹60,000 if your total income is below ₹12,00,000
Can We Claim PF Under 80C in the New Tax Regime
No.
In the new tax regime, you cannot claim a PF deduction under section 80C.
But in the old tax regime, you can claim up to ₹1.5 lakh under section 80C.
This includes PF, LIC, PPF, and Tuition Fees, etc.
Is PF Contribution Taxable?
PF contribution made by employee and employer is tax-free.
But there is a condition:
If the total PF contribution is more than ₹2.5 lakh in a financial year,
the interest earned on the extra amount becomes taxable.
For government employees, the limit is ₹5 lakh.
Tax on PF Withdrawal
1. Withdrawal before 5 years of service
PF withdrawal is taxable if:
You withdraw before the completion of 5 years, and
Your PF amount is above ₹50,000
2. Withdrawal after 5 years
If your service is more than 5 years,
then no TDS on PF withdrawal.
Recommended : Sample Filled Form 15G for PF Withdrawal in 2026
Should You Submit Form 15G if Your Income Exceeds ₹ 2.5lakh
No.
You cannot submit Form 15G if your total taxable income is above ₹2.5 lakh.
In this case:
- While withdrawing EPF, EPFO will deduct 10% TDS
- After that, you should file your Income Tax Return (ITR)
- You can choose the old or the new tax regime based on your income and deductions
- If an extra tax is deducted, you can claim a refund