FM to clarify position on EPF withdrawals in Parliament soon

Economic Affairs Secretary Shaktikanta Das on Friday said Finance Minister Arun Jaitley was considering suggestions that tax liability be confined only to returns on 60 per cent of withdrawn funds from employees' provident fund, if not invested in annuity. "An announcement in this regard will be made by the finance minister in the parliament very soon," Das said while addressing the representatives of the Federation of Indian Chambers of Commerce and Industry here.

Govt to notify categories

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The government will notify categories of employees who will be excluded from the controversial tax proposal on provident fund withdrawals, a Finance Ministry official said on Friday.

Das said in the Union Budget 2016-17 proposals, the change in tax regime was to encourage more private sector employees to go for pension security after retirement instead of withdrawing the entire money from the provident fund account.