The Statutory Brief

IT Act 1961 → 2025 / Section 10(11) / 10(12)

Exemptions

Section 10(11) / 10(12) → Schedule II

Tax-free PPF, EPF and Sukanya Samriddhi withdrawals (and the ₹2.5 lakh interest cap)

Section 10(11) / 10(12) of the old Income-tax Act, 1961 · new Schedule II under the Income-tax Act, 2025

New reference Schedule II, Table Sl. Nos. 3 (PPF/PF), 4 (EPF), 5 (Sukanya Samriddhi)

Income-tax Act, 1961Section 10(11) / 10(12)

  • 10(11): PPF/statutory PF withdrawals exempt
  • 10(12): EPF accumulated balance exempt (5-year rule)
  • Interest on employee contributions above ₹2.5 lakh (₹5 lakh without employer contribution) taxable from 1 April 2021
  • 10(11A): Sukanya Samriddhi exempt

Applies to FY 2025-26 (AY 2026-27) and earlier years.

Income-tax Act, 2025Schedule II, Table Sl. Nos. 3 (PPF/PF), 4 (EPF), 5 (Sukanya Samriddhi)

  • PF/PPF: Schedule II, Sl. No. 3; EPF: Sl. No. 4; Sukanya Samriddhi: Sl. No. 5
  • ₹2,50,000 / ₹5,00,000 contribution caps for interest exemption retained
  • EPF taxability rules (5-year service) in Schedule XI

Applies from tax year 2026-27 (from 1 April 2026).

What changed

Moved from section 10 to Schedule II; limits unchanged.

Practice notes

  • TDS on taxable EPF withdrawals: section 392(7) (old 192A).

These are summaries, not the statutory text. Read the bare Act for both sections on the Income Tax Department's official site, which also has a side-by-side comparison utility.

Frequently asked

Is PF interest taxable under the new Income Tax Act 2025?

Interest on employee contributions above ₹2.5 lakh a year (₹5 lakh where the employer does not contribute) is taxable; the rest stays exempt under Schedule II, Sl. Nos. 3 and 4.

What is section 10(11) / 10(12) called in the new Income-tax Act, 2025?

Section 10(11) / 10(12) of the Income-tax Act, 1961 corresponds to Schedule II, Table Sl. Nos. 3 (PPF/PF), 4 (EPF), 5 (Sukanya Samriddhi) of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What changed in section 10(11) / 10(12) under the new Income Tax Act?

Moved from section 10 to Schedule II; limits unchanged.

Is section 10(11) / 10(12) still applicable for FY 2025-26?

Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 10(11) / 10(12) of the 1961 Act. Schedule II, Table Sl. Nos. 3 (PPF/PF), 4 (EPF), 5 (Sukanya Samriddhi) of the 2025 Act applies from tax year 2026-27.

Related sections

192→392TDS on salary (and on withdrawal of accumulated PF balance)80C→123Deduction for life insurance, PF, PPF, ELSS, tuition fees, home-loan principal and other specified savings10(12A) / 10(12B)→Sch IITax-free NPS withdrawals: 60% lump sum and partial withdrawal