Jaitley defends EPF tax; rollback demands grow
NEW DELHI: Finance minister Arun Jaitley on Wednesday defended the government’s intent behind taxing employee provident fund (EPF) withdrawals even as the BJP’s allies and rivals raised the pitch for a rollback.
The budget proposed that 40% of an individual’s accumulated corpus in the employees’ provident fund (EPF) and the National Pension System (NPS) schemes would not be taxed at the time of withdrawal. This effectively meant that the remaining 60% of the corpus was taxable.
Jaitley said at an event organised by Rajya Sabha TV that the government’s intent “was not to raise some revenue from this” but it wanted to “incentivise for a pensioned society”.
However, he said he was considering all the demands and would spell out the decision when he replied to the debate on the budget in Parliament.