EPF Tax may go, at least for a few

March 7, 2016

EPF Tax withdrawal likely to see partial rollback

The EPF (Employees’ Provident Fund) tax issue was discussed in a meeting between the officials of Prime Minter’s office (PMO), the Finance Ministry and the labor ministry on late Thursday.

The informed sources said that the government is considering giving relief to people but without a complete rollback regarding the prevalent anxiety over the proposed tax on withdrawal from the EPF.

[dropcap color=”#008040″ boxed=”yes” boxed_radius=”8px” class=”” id=””]T[/dropcap]he issue of EPF Tax is also opposed by the RSS- affiliated Bharatiya Mazdoor Sangh (BMS) and has demanded a complete rollback and they have also said their demand is being taken into consideration by the government.

“We are talking to government representatives and they are considering our concern. We are in regular touch with them. We hope some announcement in a day or two,” BMS general secretary Vijesh Upadhyay told IANS.

The BMS leaders have met Labour Minister Bandaru Dattatreya, Power Minister Piyush Goyal and some other government representatives in EPF Tax regard.

Finance Minister Arun Jaitley is likely to make the announcement when he replies to the debate on the Budget in parliament.

In his budget speech on February 29, Jaitley said that 60 percent of withdrawals from the provident fund accounts will be taxed on contributions to be made after April 1. The aim is to make India a more insured and pensioned society, he said.