FICCI welcomes Govt.'s decision to review PF tax proposals

"Union Budget 2016-17 has proposed to revise the tax treatment of contributions to the Recognised Provident Funds in as much as withdrawals on maturity are proposed to be made partially taxable and further a limit of Rs 1,50,000 is proposed to be prescribed on the employer's contribution to the credit of an employee.

Trade and Industry as well as the employees have expressed their disappointment over these proposals in as much as these proposals adversely impact the salaried class which has been steadfast in contributing their bit to the Exchequer. Moreover prescribing a ceiling on employers' contribution would amount to double taxation in respect of the contributions in excess of the limit.

FICCI is however encouraged by the reports that the Hon'ble Finance Minister will be reviewing these provisions and make his decision known at the appropriate time through an announcement in Parliament. Similar views have also been expressed by the officials of the Ministry of Finance in their post-budget interactions with FICCI.

FICCI is happy to note and welcome the decision of the Government to give a re-look to these Budget provisions and hopes that the proposals will be modified to protect the interest of employees, FICCI President Mr. Harshavardhan Neotia said.

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