Proposal of taxing EPF withdrawal likely to see partial rollback

Following widespread concern over the proposed tax on withdrawal from the Employees' Provident Fund (EPF) contributions, the goverenment is contemplating to give relief to people but without a complete rollback, said informed sources.

According to sources, a meeting between the officials of Prime Minister's Office (PMO), the finance ministry and the labour ministry took place on late Thursday and discussed the EPF tax issue.

The RSS-affiliated Bharatiya Mazdoor Sangh (BMS), which has also opposed the proposal and demanded a complete rollback, also said that government is considering their demand.

"We are talking to government representatives and they are considering our concern. We are in regular touch with them. We hope some announcement in a day or two," BMS general secretary Vijesh Upadhyay told IANS.

The BMS leaders have met Labour Minister Bandaru Dattatreya, Power Minister Piyush Goyal and some other government representatives in this regard.

Finance Minister Arun Jaitley is likely to make the announcement when he replies to the debate on the Budget in parliament.

In his budget speech on February 29, Jaitley said that 60 percent of withdrawals from the provident fund accounts will be taxed on contributions to be made after April 1. The aim is to make India a more insured and pensioned society, he said.