New Delhi, February 3: The Employees' Provident Fund Organisation (EPFO) has welcomed the Union Budget proposal to rationalise the Income Tax regime for private provident fund trusts.

The move is expected to significantly benefit stakeholders by streamlining and harmonising norms.

The Budget for 2026-2027 aligns the income tax framework governing recognised provident funds with the statutory and administrative provisions of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, as well as the Employees' Provident Funds Scheme, 1952, a statement from the Ministry of Labour stated.

Currently, there is a discrepancy in the eligibility for exemption between private provident fund trusts under Income Tax provisions and Section 17 of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. The proposed changes aim to address this divergence and simplify the regulatory landscape.