Centre decides to withdraw tax on Provident Fund
News have surfaced that the Prime
Minister has instructed the Finance Minister to put a hold on the
proposed plan to impose taxes on PF withdrawals. Finance Minister
Arun Jaitley is expected to make an official announcement in this regard
shortly.
Employee unions all over the country
have been vehemently opposing the proposed tax on the withdrawals made
on the most important savings of a worker, from the moment the
announcement was made. Most employees depend on their provident fund
savings to meet some of the most important expenses of their lives, like
medical, marriages, building a house, etc. The decision to impose tax
on these withdrawals was condemned by all.
Jaitley had announced a tax on 60
percent of the Employee Provident Fund, and Public Provident Fund. The
government has now said that they had planned to impose tax only on the
PF Interest. But, there was strong opposition for this too. Demands were
made to withdraw this tax.
According to information available,
Jaitley had informed at the meeting of the MPs that the Prime Minister
will have to decide on this. Meanwhile, the Prime Minister has
recommended the Finance Minister to stop the tax on the PF withdrawals,
and to conduct a thorough study on this. Arun Jaitley is expected
to take the required action after consulting with the officials of his
ministry. The Prime Minister’s intervention has restored the peace of
mind of more than 60 lakh Government employees.
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