Thursday, March 10, 2016

GOVERNMENT ROLLS BACK PROPOSAL TO TAX PROVIDENT FUND

            New Delhi, Mar 8 (PTI) In the face of all round attack, Finance Minister Arun Jaitley today completely rolled back the controversial proposal to tax the employees' provident fund (EPF) at the time of withdrawal.

            Taking the first opportunity available, he made a suo motu statement in the Lok Sabha in which he also announced withdrawal of imposing monetary limit for contribution of employers to provident and superannuation fund of Rs 1.5 lakh for taking tax benefit.

            Jaitley, however, left untouched the proposal tax exempt 40 per cent of National Pension Scheme and services provided by EPFO to employees.


            "In view of the representations received, the government would like to do comprehensive review of this proposal and therefore I withdraw the proposals in para 138 and 139 on my budget speech. The proposal of 40 per cent exemption given to NPS subscribers at the time of withdrawal remains," the Minister said. 

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