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EPF tax withdrawal big victory for 2.5 lakh people:

An online petition, to withdraw EPF tax, started by finance professional Vaibhav Aggarwal had got support of 2.5 lakh people

Press Trust of India  |  New Delhi 

Jaitley to consider EPF tax review

With the government agreeing on withdrawal of the controversial tax, online petition platform today termed it as a big victory for nearly 2.5 lakh people who had signed an online petition against the taxation move.

The petition, which was started by a finance professional from Gurgaon, Vaibhav Aggarwal, had got the support of over 2.5 lakh people who sought urgent and immediate withdrawal of tax that was announced in the .

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Meanwhile, Finance Minister today announced in Parliament that the proposal to tax Employee Provident Fund (EPF) has been withdrawn.

Jaitley had in his 2016-17 proposed tax withdrawal of 60% of accumulations in the Employee Provident Fund after April 1, 2016. This was criticised by all employee unions as well as political parties.

"In view of representations received, the government would like to do a comprehensive review of this proposal and therefore, I withdraw the proposal," Jaitley said in a suo motu statement in the Lok Sabha.

He, however, stated that 40% exemption given to a National Pension Scheme (NPS) subscriber at the time of withdrawal remains.

Aggarwal, petition starter on, said, "We thank the Prime Minister and Finance Minister for taking our concerns into consideration and withdrawing the proposal. Nearly 2.5 lakh people joined me on to appeal that this proposal be rolled back and the government responded with great proactiveness."

Preethi Herman, Head, India, said, "This is a true example of participative democracy. Vaibhav voiced his concern on as a single person. He was joined by lakhs of Indians and today, the government has listened to them. This is a great day for our democracy.

First Published: Tue, March 08 2016. 14:42 IST