Clarification by the finance ministry on the EPF tax row has raised more questions than answers
To standardise all products, the FM introduced tax on EPF too
After day-long confusion, ministry says FM to take a look at it in due course
Earlier in the day, Revenue Secretary Hashmukh Adhia said only 60% of interest on contributions made after April 1, 2016 will be taxed
Central trade unions, including the RSS-backed Bharatiya Mazdoor Sangh, have opposed the Budget proposal to tax EPF withdrawal and contribution
The latest twist came after Revenue Secretary Hasmukh Adhia earlier in the day said only interest on 60% of EPF would be taxed at withdrawal
The govt announced in the Budget yesterday that withdrawals from EPF and NPS to have same tax rates
The move to tax 60% of contributions effective April 1, 2016, had been roundly criticised since it would affect all salaried individuals
From 40%, public provident fund will now be 100% exempt. For EPF, the withdrawn amount would be totally tax exempt if it is re-invested in annuity pension products
Started by a finance professional Vaibhav Aggarwal, the appeal has support of nearly 3,000 people
Rather than correcting a bad instrument like NPS, Jaitley and his team of experts preferred to make all pension plans equally bad
Withdrawals from EPF and NPS to have same tax rates
Cess introduced on several goods, services to add to tax revenue kitty
Professionals can do away with the need to maintain account books and audits
Business Standard takes a look at some of the highlights from the tax proposals, and how they will affect the common man
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