March 08, 2016

After intervention in the matter by Hon’ble Prime Minister Shri Narendra Modi the EPF Tax Proposal has been withdrawn by Shri Arun Jaitley. The announcement was made by Sh. Arun Jaitley in the Lok Sabha today on Tuesday March 08, 2016 as under:

In view of representations received, the government would like to do a comprehensive review of this proposal and therefore I withdraw the proposal.

Employees should have the choice of where to invest. Theoretically such freedom is desirable, but it is important the government to achieve policy objective by instrumentality of taxation. In the present form, the policy objective is not to get more revenue but to encourage people to join the
pension scheme,

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