Withdrawing EPF tax will be grave mistake

It's unfortunate the govt seems close to bowing to pressure from a limited section of the public

It appears that one of the more forward-looking provisions in the Union Budget for 2016-17, the decision to make a proportion of employee provident fund (EPF) withdrawals taxable, may be put on hold. At the time of withdrawal, 60 per cent of any money deposited in an EPF account after April 1 was to be made subject to tax, unless it was re-invested in a pension product like an annuity. The uproar from the salaried class was loud and along predictable lines. This was in spite of the fact that the proposal would apply to those drawing wages over Rs 15,000 a month - a minuscule proportion of the ...