EPF policies are disincentivising honest tax payer
PF tax rules change from April. Employee contributions to PF above ₹ 2.5 lakh p.a. will be taxed..
So anyone who earns more than ₹20.83 lakhs p.a. will attract interest on EPF contribution..
Big question is.. Should people be penalised for earning more money honestly ? more
If the Govt wants to tax amounts about 2.5 lacs, that is fine(not happy though). What should also be possible that, people should have choice to not contribute any income above this amount to EPF and take it home. Otherwise, this comes an automatic tax kitty for the govt, and individuals will be prisoned to the scheme as is available right now. more
As it appears on the face of it, the GOI wish to discourage savings by individuals by imposing tax on a life time savings such as PF, as GOI has failed to bring in liquidity to the markets to spend and rather indirectly forcing the general public to spend more and more, since their savings will not yield respective returns and also such savings are taxed . GOI has exhausted its treasury, courtesy our great banks, who comfortably lost lakhs of crores of tax payers money and ironically GOI wish to bail out them by creating a BAD Bank to save these somewhat badly managed banks. The lower strata/ Middle class of the society are always sure shot to bear the burden and brunt. The myriad /myth about good governance is slowly fading away. more
Sir, Income Tax is a Fine on Income generated. Further, due to humanitarian reasons, all over the world, people earning less are taxed at a lower rate, they get deductions and exemptions on certain investments and expenditure. As one's income increases the tax bracket increases, that's a truth we all are aware of and accept. The question we are left here is why should EPF contribution of above 2.5L limit be compulsory, if et all it is? more
we had hopes by being an honest tax payer (as apart of only 6 % of the population even though others earn more) will get benefits but it is going in the opposite direction. Do you guys know that my hard earned savings in EPF is still lying with EPFO after my retirement 7 months passed. Here also i had hopes when deigital transactions are introduced. Lost hope on all the goverment they have no guts to tap the tax from illegal guys they will only suck from us more
Is anything left out from the ambit of TAX or GST, TDS, TCS, etc,? Power is in in the hands of fraud mentality. more