EPF Taxation: Inputs Sought
Budget 2016 has proposed to levy a tax on 60% of the EPF Withdrawal amount.
Kindly share your inputs on how should the EPF work so people are discouraged from withdrawing from their EPF account before retirement. Also, they should do not have to pay taxes at retirement when Provident Fund is their primary source of income.
Also, if you have examples from how retirement pensions work in other countries, please share them
We look forward to your inputs and will also conduct a poll on the same shortly for submission to the Government for consideration! more
MODIJI,THANKS 4 TAKING DECISION BACK,BUT LOT WORK HAS TO B DONE,4 FARMERS,WORKERS ,COMMON MAN,POORS ,DO WORK PLEASE FAST ,OTHERWISE NEXT ELECTION WIL BE HARD 4 BJP & I AM WORRIED ABOUT THIS ,BANISH CONGRESS,PAWAR,LEFTIST,JAYLALITA ETC FROM INDIA BY UR GOOD WORK & EXPOSE THE OPPOSITIONS IN EVERY MEDIA EVERY WERE & ASK SOME BJP MLAS TO KEEP MUM,DO SOMETHING FAST & BEST more
1.my experience with finance department in PSU (I am a retired PSU employee) is any expenditure cutmeans, cut on the benefits, travels and perks. They never think of increasing revenue with the spending. Same is the attitude of Government (mostly guided by the bureaucrats) to target regular salaried employees. The bureaucrats takes care of themselves on such matters. example is taxing the Gratuity. All Government employees the gratuity was not taxed from the introduction,on increased amount that is Rs 1000000, whereas for others it is effected from May 2010 only. What an colossus attitude.This is how EPF is also considered. EPF corpus really helps onepeople retire. The annuity get never increased,like pension. The pension increases with DA increases for the Government staff. If Government wants the employees is to invest in Annuity,introduce the benefit of increasing the annuity with cost of index. Then employees may opt for it . In US the scheme 401K,like PF gives option for the employees to invest in two streams. One with exempting the investment eligible for tax rebate in the investing stage, and the corpus get taxed while withdrawing. The other is investing after paying IT, and this corpus is not taxed while withdrawing. Introduce this facility for the new NPS. People in general are not aware of the NPS and the long term benefit. Educate all employees. In Most developed countries, Government is creating awareness about various financial instruments, to their people more
I thought that this govt will not be tax-raj govt like Cong. But I am disappointed that taxes are only getting worser and not any better. I also thought $ will be weaker since money laundering overseas will not be there. But somehow the $ rate is increasing constantly. more
As per my knowledge with the retirement plans in other countries, the EPF withdrawal is discouraged by taking the taxes when withdrawn before certain age. But as per recent budget it was applicable to all!! which should not be the case. If Govt. just wants to discourage withdrawal only by doing this then they can put the age bar for applying tax. But for retirement age, the tax should NOT certainly be there. more
I don't know what made Crazy to the Government to target the tax EPF part , which is the hard earned earnings for an employee during his retirement , my humble request to the government is to please withdraw this and make every single employee proud of this...please don't steal it from us...if you want to tax , please tax on other luxury things... more