financial advice needed. Finance minister has removed all deductions under the new tax regime. does that mean, that provident fund will also be taxed now ? in the old regime, any contribution above rs 5 lakh was taxed. now will the entire contribution be taxed ? if yes, then should i reduce provident fund ?
Ans: Contribution to Provident Fund was neither taxable in the past nor it is in the present, even in new tax regime.
However, no tax deduction u/s 80-C for contribution to Provident Fund, is available in new tax regime.
PF is one of the good options for Savings/Investments. You may continue, subject to other options available with you for your money growth.
Most welcome for any further clarifications. Thanks.