"Top 5 Tax Benefits of EPF You Must Know!"

The article outlines various tax benefits of the Employees' Provident Fund (EPF), including deductions under Section 80C, tax-free interest and withdrawals, employer contributions exemptions, and exemption from wealth tax, making it a valuable tool for savings and tax planning.

Tax Benefit	Description
Deduction under Section 80C	Contributions made by an employee to the EPF account are eligible for tax deduction under Section 80C of the Income Tax Act, up to a limit of ₹1.5 lakhs per financial year.
Tax-Free Interest	The interest earned on the EPF balance is tax-free, provided it does not exceed the notified limit. Currently, the cap applies only if the annual employee contribution exceeds ₹2.5 lakhs in a year.
Employer Contribution	The employer's contribution to the EPF account is tax-exempt in the hands of the employee, subject to an annual limit of ₹7.5 lakhs (including other contributions like NPS and superannuation).
Tax-Free Withdrawal	The accumulated balance in the EPF account (including contributions, interest, and employer share) is tax-free at the time of withdrawal, provided the employee has completed 5 continuous years of service.
Exemption from Wealth Tax	EPF contributions and balances are not considered as part of an individual's taxable wealth, making it an excellent tool for wealth accumulation.

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