EPFO Welcomes Rationalisation of Income Tax Regime for Provident Funds

• Union Budget 2026-27 has harmonised the income-tax treatment of Recognised Provident Funds (RPFs) with the EPF & MP Act, 1952 and the EPF Scheme, 1952, removing long-standing divergences that fuelled litigation.
• RPFs are now governed by Schedule XI of the Income-Tax Act, 2025 (in force from 1 April 2026).
• Examinable as a GS-II (governance) and GS-III (economy / social security / taxation) intersection — links EPFO, Direct Tax Code rewrite, and labour codes.