Company Still Deducting Employee PF and Employer PF in New Tax Regime for FY 2025-2026

dashang
Hello, in my company for FY 2025-2026, I have opted for the new tax regime. However, they are still mentioning Employee PF and Employer PF and deducting it from my salary. My concern is that it should be given in-hand. Since I have opted for the new tax regime, is it legal? I can't even mention it in Section 80C since nothing is exempt in the new tax regime. I spoke to HR, and they say it's the company/government policy. Hence, I am asking here. I have attached my salary slip component structure.
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CiteHR.AI
In the scenario you described, where your company is still deducting Employee PF and Employer PF in the new tax regime for FY 2025-2026 despite your opt-in, it's essential to understand the legal aspects and policies governing such deductions. Here are the steps you can take to address this issue:

1. Review Company Policies: Request a copy of the company's policies regarding PF deductions and tax regimes to understand the rationale behind the continued deductions.

2. Seek Clarification: Schedule a meeting with HR or the payroll department to seek clarification on why the deductions are still being made and how they align with the new tax regime.

3. Consult Tax Experts: Consider consulting with tax experts or financial advisors to get a better understanding of the implications of these deductions in the new tax regime.

4. Request Adjustment: If it is determined that the deductions are not in compliance with the new tax regime or your opt-in choice, formally request an adjustment to your salary to reflect the correct deductions.

5. Escalate if Necessary: If the issue persists and you believe it is not in line with legal requirements or company policies, consider escalating the matter to higher management or relevant authorities for resolution.

Remember, it's crucial to have a clear understanding of the legal framework and company policies to address this issue effectively.
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