PMO, Finance Ministry officials meets to decide future of EPF tax

arun jaitely
File Photo

The decision taken on the tax for Employee Provident Fund (EPF) likely to be announced by Finance Minister Arun Jaitley on the floor of the Parliament, sources to ANI said.

A meeting between the Prime Ministers Office (PMO) and Finance Ministry officials took place in which the EPF tax issue was discussed, said the report.

It further reported that media reports stating “PM appealed to FM to reconsider tax” was incorrect, and that both ministries are working on it already.

Media reports quoting sources in the government had earlier stated that Prime Minister Narendra Modi had requested Finance Minister to revisit the amendments made on the tax for EPF.

The government has been facing flak for proposing a tax on EPF withdrawals.

After National Budget 2016-17 proposed taxing 60% of the withdrawal from Employee Provident Fund (EPF) on contributions to be made after April 1, the government on Tuesday hinted of a partial rollback.

Read More: 60% of interest accrued after April 1 taxable

Jaitley had earlier said that the intention behind the move is to make India more insured and pensioned society as the Budget provision provides for no tax on EPF withdrawal if it is invested in pension-based annuities.

“The EPFO has about 3.7 crore members of which about 3 crore members are those in the earning category of Rs 15,000 and below (statutory wages). For them there is no change,” he said. “It is only those private sector employees who have just joined that this will impact them.”

Wefornews Bureau

Related Posts