EPF tax row: As govt rolls back proposal, a lowdown since the budget

By: | Updated: March 8, 2016 4:07 PM

Facing all around attack, Finance Minister Arun Jaitley on Tuesday withdrew his Budget proposal to tax employees' provident fund (EPF) at withdrawal.

Budget EPF tax proposal - Arun Jaitley Facing all around attack, Finance Minister Arun Jaitley on Tuesday withdrew his Budget proposal to tax employees’ provident fund (EPF) at withdrawal.

After an outcry by salaried workers, Finance Minister Arun Jaitley’s on Wednesday informed the Lok Sabha that the government has withdrawn a budget proposal to tax pension fund withdrawals.

We provide a lowdown on the issue since it was proposed in the budget.

What’s your age? How EPF tax will impact your retirement savings
Budget 2016 proposal on EPF withdrawl tax will affect the youth most and may discourage them to save for their retirement.

EPF tax withdrawal: What could be the possible impact on your finances
New entrants to the EPF will be the worst affected as the new rule will not apply to EPF balance accumulated till April 2016.

Data Drive: It’s taxing for EPF subscribers
Given the fact there is no robust social security system in the country, it is important that the government encourages investments in pension schemes.

EPF tax row: Will it lead to double taxation?
Employee contributions are made out of post-tax salary and taxing the same at the point of withdrawal triggers double taxation.

EPF tax row: ‘NPS should be made fully tax exempt’
Regarding NPS, it would have been better if the entire 60% of the corpus which can be currently withdrawn could come under the EEE (exempt, exempt, exempt) regime. This would have made NPS a more cogent system.

Tax on EPF; annuity push a likely windfall for insurance companies
While the government has currently proposed to allow only annuity product as the option where the money can be deployed for tax gain, financial planners say that the government should look to expand the option beyond just one scheme

Employee Provident Fund: 5 lesser known facts amid tax row
Your subscription to Employee’s Provident Fund (EPF) generally comes with your salary package at the time of employment. You are not given a choice to opt out. However, many may not know they can opt out of the scheme and decide to invest that money on any other avenue of their choice.

How Budget move on taxing Employees’ Provident Fund will pinch you
Budget 2016: The govt has specifically said that the contributions made in employees’ provident fund until March 31, 2016 will attract no tax at the time of withdrawal. It will be only applicable on contributions made on or after April 1, 2016.

All you need to know about retirement schemes- NPS, PPF and EPF
While EPF is run by the Employees’ Provident Fund Organisation (EPFO), the other old-age income security scheme – the Public Provident Fund (PPF) – is sponsored by the government and the National Pension Scheme is sponsored by the Pension Fund Regulatory and Development Authority (PFRDA).

Budget’s provident fund tax move could lead to large outflow from EPFO corpus
The labour ministry, which had been kept in the dark over the imposition of taxes on provident fund (PF) withdrawals or the interest accrued, fears that there can be a large outflow from the Employees’ Provident Fund Organisation’s (EPFO) corpus of Rs 6.2 lakh crore before the proposed tax on withdrawals kicks in from April this year.

Employee Provident Fund: 5 lesser known facts amid tax row
Your subscription to Employee’s Provident Fund (EPF) generally comes with your salary package at the time of employment. You are not given a choice to opt out. However, many may not know they can opt out of the scheme and decide to invest that money on any other avenue of their choice.

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