Rahul Gandhi had urged Prime Minister Narendra Modi to roll back the proposal for taxing EPF withdrawals to instil confidence among employees.
The petition, which was started by a finance professional from Gurgaon, Vaibhav Aggarwal, had got the support of over 2.5 lakh people who sought urgent and immediate withdrawal of EPF tax that was announced in the Budget.
Mamata Banerjee statement came soon after union Finance Minister Arun Jaitley withdrew his Budget proposal to tax employees' provident fund (EPF) at withdrawal.
The Finance Minister is expected to speak on EPF tax proposal in the Lok Sabha after 12 noon. Modi had reportedly asked Jaitley to reconsider the Budgetary proposal under which a part of the EPF withdrawal will be taxed, according to highly placed sources.
Finance Minister Arun Jaitley says the government has withdrawn proposal to tax Employee Provident Fund but retained tax proposal for NPS.
Finance Minister Arun Jaitley today said the government will roll back its Budget proposal that sought to levy tax on withdrawal of funds from Employee Provident Fund (EPF).
Congress Vice President Rahul Gandhi today accused Prime Minister Narendra Modi of promoting the interest of a few select industrialists and "those with black money", while imposing tax on life-long savings of the salaried class.
"EPF is the safety net of the employees and imposing a tax on this is wrong. I will urge the Prime Minister to announce... that the tax will be rolled back," Rahul Gandhi said.
Watch the interview of Parizad Sirwalla, Partner Tax, KPMG India and Investment Planning Expert Garav Mashruwala with Surabhi Upadhyay on CNBC-TV18, in which they tried to decode the new tax regime that will govern EPF and NPS and in turn your life's retirement savings.
A day after the 2016-17 Budget proposed taxing 60 percent of the withdrawal from Employee Provident Fund (EPF) on contributions to be made after April 1, the government was hard pressed to explain that the move was aimed at high-salaried class and not the overwhelming section of 3.7 crore EPF members
In order to bring parity between various other instruments and the NPS there is a proposal to exempt 40 per cent of the receipt from a superannuation fund and a withdrawal from the Employees Provident Fund (EPF) and tax the remaining amount
CNBC-TV18‘s Nayantara Rai, quoting sources, says that the Budget 2016 will see a â€˜mega‘ healthcare scheme with an initial investment of Rs 6,000 crore.
In the long term you may earn higher return by investing your EPF money in equity than investing in bonds.
Retirement fund body EPFO settled 10.53 lakh claims like PF withdrawals in May, of which 86 percent were disposed of within 10 days of receipt of application.
If you have more than 10 years on hand, consider using SIP in aggressive equity funds. Otherwise stick to debt oriented funds and balanced funds.
They offer to protect your money and offer regular returns that generally keep pace with inflation.
Retirement is a goal which cannot be funded with loans. Earlier you start better off you are, as you can devise a strategy which works in the long run. Also the strategy can be re-balanced if need be.
Earlier, the task of updating PF accounts for a financial year used to take months after the end of that fiscal. The Employees' Provident Fund Organisation (EPFO) is required to update PF accounts for a fiscal till September 30 after the end of that financial year.
The tax benefit will attract more individuals to NPS. Exposure to equities will bring in the much awaited returns kicker to NPS
Pension plans provided by employers are now based on defined contribution principle. It is better to supplement them along with other options such as PPF and MF SIP.
The budget proposes to make present TDS limit for tax deduction applicable in respect of fixed deposits with all the branches taken together, as compared to each branch earlier
Tax saving should not be the only factor that decides if an investment can be bought.
Government has decided to retain the interest on EPF at the same level as it was for the previous financial year
Insurance is for protection against life and should not be considered as a tax saving instrument. Meanwhile, PPF is an instrument which only protects your money and earns the inflation rate. It is like running on a treadmill, there is a benefit but you are not moving ahead. You will manage inflation but not beat inflation.
Retirement receipts should be checked for taxability