“People withdraw their money from the provident funds, they do it so for building their homes, buy land or in medical emergency.. these don’t come under annuity hence it won’t give more interest to the government. so to tax working class again would have been a complete injustice,” Congress leader Shashi Tharoor told mediapersons outside the Parliament.
Following a backlash for taxing the provident funds of working class, Union Finance Minister Arun Jaitley on Tuesday announced the withdrawal of the budget proposal of taxation of EPF.
“In view of the representations ?received, including from the Members of Parliament, the go?vernment would like to do comprehensive review …And, therefore, I withdraw the proposal,” Jaitley said.
The proposal of 40 percent exemption given to the National Pension Scheme (NPS) subscribers at the time of withdrawal remains, he clarified in his statement.