Union Finance Minister Arun Jaitley announced the withdrawal of the budget proposal on taxing Employees Provident Fund, following a backlash in and outside Parliament. He announced to withdraw the proposal while clarifying NDA government’s stand on the issue in the Lok Sabha.
He further stated that government would also like to comprehensively review EPF tax proposal. However, government retained the tax proposal for National Pension Scheme (NPS) withdrawals. At present, the entire EPF amount is tax free at the time of withdrawal if the employee has completed five years of continuous service.
Earlier in the Union Budget 2016-17, Union Finance Minister Arun Jaitley had proposed to tax EPF and NPS withdrawals with an effect from 1 April 2016. It was announced that 60 percent of the amount deposited in EPF account of the employee would be taxed at the time of withdrawal and remaining 40 percent would be tax free.
- 1- The National Pension System (NPS) is a defined-contribution pension system operated by the Government of India. In 2004, the Government of India decided to move from a defined-benefit pension system to a defined-contribution pension system. NPS offering a range of investment options to employees, the scheme allows individuals to make decisions about where their pension fund is invested, permits limited withdrawal prior to retirement and reduces the total pension liabilities of the Government of India.
- 2- The Employees’ Provident Fund Organisation EPFO, is a statutory body of the Government of India under the Ministry of Labour and Employment. It administers a compulsory contributory Provident Fund Scheme, Pension Scheme and an Insurance Scheme. The schemes cover Indian workers as well as International workers (for countries with which bilateral agreements have been signed. EPFO founded in 4 March 1952.
So lets do:
Who is the Finace Union Minister of India?
EPFO come Under which Minister?
Who is the Chairman of EPFO?In which year National Pension System (NPS)?
Source – The Hindu