Arun Jaitley rolls back proposal to tax EPF withdrawal - "The purpose to tax EPF withdr- Navbharat Times Photodhamal

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"The purpose to tax EPF withdrawals was to encourage a pensioned society. However, In view of representations received, the government would like to do a comprehensive review of this proposal and therefore I withdraw the proposal," Jaitley said in a suo motu statement in the Lok Sabha.

In This Pic : Arun Jaitley

Pic Courtesy : PTI

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He, however, stated that 40 per cent exemption given to National Pension Scheme (NPS) subscriber at the time of withdrawal remains.

In This Pic : Arun Jaitley

Pic Courtesy : BCCL

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Jaitley had in his Budget for 2016-17 proposed to tax withdrawal of 60 per cent of accumulations in the employee provident fund after April 1, 2016.

In This Pic : Arun Jaitley

Pic Courtesy : PTI

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Jaitley had proposed that 40 per cent of the EPF withdrawals would be tax exempt and the remaining 60 per cent would also get the same treatment provided the amount is invested in pension annuity schemes.

In This Pic : Arun Jaitley

Pic Courtesy : PTI

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This proposal was criticised by the parties and the unions which said it amounted to forcing employees to invest in pension annuity schemes.

In This Pic : Arun Jaitley

Pic Courtesy : PTI