Section 10(12) → Section 12
Recognised Provident Fund (EPF)
Quick Answer
Section 10(12) of the Income Tax Act, 1961 (Recognised Provident Fund (EPF)) corresponds to Section 12 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 10(12)
Provision Summary
Accumulated balance due to an employee from a recognised provident fund is exempt.
Sec 12
Provision Summary
Retained with limits. Interest accrued on employee contributions exceeding Rs. 2.5 Lakhs (or Rs. 5 Lakhs if no employer contribution) per year is now taxable.
Key Changes & Highlights
- Two separate EPF accounts (taxable and non-taxable) are maintained by the EPFO to calculate this.
Related Sections
Frequently Asked Questions
What does Section 10(12) of the Income Tax Act 1961 deal with?
Section 10(12) (Recognised Provident Fund (EPF)) Accumulated balance due to an employee from a recognised provident fund is exempt.
What is the new section number for Section 10(12) under the Direct Tax Code 2025?
Section 10(12) of the ITA 1961 maps to Section 12 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 10(12) under the new tax code?
Section 10(12) is marked as "Retained" with status "Modified". Impact: High - Taxes interest on massive EPF contributions by high-salary earners.
What are the key changes to Section 10(12) under DTC 2025?
Two separate EPF accounts (taxable and non-taxable) are maintained by the EPFO to calculate this.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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