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Government rolls back proposal to tax EPF
By: Tupaki Desk | 8 March 2016 9:06 AM GMT
In wake of criticism from all corners union government has decided to roll back its budget proposal to tax employees' provident fund (EPF) at withdrawal. In his budget proposal which was introduced a week back union finance minister Arun Jaitley announced a tax on EPF.
Finance Minister has proposed to tax 60 per cent of the corpus of the provident fund at the time of withdrawal and said that it will come to force after April 1, 2016.The proposal has evoked strong opposition from employees' representatives as well as political parties.
Now the union minister has roll backs its proposal and made an official announcement today. He however stated that 40 per cent exemption given to National Pension Scheme (NPS) subscriber at the time of withdrawal remains.
" In view of representations received, the government would like to do a comprehensive review of this proposal and therefore I withdraw the proposal. We propose to withdraw the tax on EPF. However the tax proposal for NPS scheme has been retained," Finance Minister Arun Jaitley said in Lok Sabha on Tuesday.
Finance Minister has proposed to tax 60 per cent of the corpus of the provident fund at the time of withdrawal and said that it will come to force after April 1, 2016.The proposal has evoked strong opposition from employees' representatives as well as political parties.
Now the union minister has roll backs its proposal and made an official announcement today. He however stated that 40 per cent exemption given to National Pension Scheme (NPS) subscriber at the time of withdrawal remains.
" In view of representations received, the government would like to do a comprehensive review of this proposal and therefore I withdraw the proposal. We propose to withdraw the tax on EPF. However the tax proposal for NPS scheme has been retained," Finance Minister Arun Jaitley said in Lok Sabha on Tuesday.
