As per the Union Budget, contributions made on or after April 1, 2016 by an employee participating in a recognised provident fund and superannuation fund, up to 40 percent of the accumulated balance attributable to such contributions on withdrawal shall be exempt from tax.
The hashtag #RollBackEPF was trending today on Twitter as the outraged salaried class took to social media to voice its ire against the Budget proposal to tax employee provident fund (EPF) withdrawal.
Under the Budget proposal, interest accrued on 60 percent of contribution to EPF will be taxed at the time of withdrawal. Investments in public provident fund (PPF) however will not be taxed.
Here are some interesting comments on Twitter.