Finance Minister Arun Jaitley withdraws proposal to tax EPF


New Delhi, Mar 8, 2016, (PTI): Facing all around attack, Finance Minister Arun Jaitley today withdrew his Budget proposal to tax employees' provident fund (EPF) at withdrawal.

Jaitley had in his Budget for 2016-17 proposed to tax withdrawal of 60 per cent of accumulations in the employee provident fund after April 1, 2016.

This was criticised by all employees unions as well as political parties.
"In view of representations received, the government would like to do a comprehensive review of this proposal and therefore I withdraw the proposal," Jaitley said in a suo motu statement in Lok Sabha.

He however stated that 40 per cent exemption given to National Pension Scheme (NPS) subscriber at the time of withdrawal remains.

In his budget proposal, Jaitley had proposed that 40 per cent of the EPF withdrawals would be tax exempt and the remaining 60 per cent would also get the same treatment provided the amount is invested in pension annuity schemes.

This proposal was criticised by the parties and the unions which said it amounted to forcing employees to invest in pension annuity schemes.

"Employees should have the choice of where to invest. Theoretically such freedom is desirable, but it is important the government to achieve policy objective by instrumentality of taxation. In the present form, the policy objective is not to get more revenue but to encourage people to join the pension scheme," Jaitley said explaining the rationale for the taxation proposal.

The proposal would not have impacted 3.26 crore EPFO subscribers drawing statutory wage of upto Rs 15,000 per month. Employees Provident Fund Organisation (EPFO) has a total subscriber base of 3.7 crore.

  

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  • Anirudh P, Bengaluru

    Wed, Mar 09 2016

    Girish,

    Can you give me one reason for which you feel that I should fear this joker.

    Jokers cannot create phobia in any persons.
    In These so called Sriman and Shrimati of your, are just laughing stock for us..

    You are giving larger than life image to Pappu and party.
    Don’t cook up lie story in which your party is famous for.

    DisAgree [7] Agree [1] Reply Report Abuse

  • Bhaskar Acharya, Shirva

    Wed, Mar 09 2016

    Congratulate Pappu for sun rise and sun set!

    DisAgree [2] Agree [1] Reply Report Abuse

  • KRPrabhu, B'luru

    Wed, Mar 09 2016

    For good rain also but not for monsoon failure..!

    DisAgree Agree [1] Reply Report Abuse

  • pks, mlr

    Wed, Mar 09 2016

    first time i have seen quickly actioning government in my life.

    DisAgree [4] Agree [1] Reply Report Abuse

  • KRPrabhu, Bangaluru

    Wed, Mar 09 2016

    We must appreciate Jaitly's withdrawal timing and method...!
    Whenever I see him on TV,can feel his difficulty in explaining the 'methodology'... of reaching out to middle class....!

    DisAgree [3] Agree [2] Reply Report Abuse

  • Vincent Rodrigues, Promenade Road,Frazer Town,B'lore

    Wed, Mar 09 2016

    BJP was clapping in the parliament when the above tax provision was introduced.Now what they do when this proposal to tax EPF is repealed.

    DisAgree [1] Agree [5] Reply Report Abuse

  • R.Bhandarkar, Mangaluru

    Wed, Mar 09 2016

    Clap again..man..so simple.

    DisAgree [1] Agree [4] Reply Report Abuse

  • RAVINDRA, KARKALA

    Wed, Mar 09 2016

    there was some rationale behind taxing EPF, which govt not able to effectively communicate to the people.

    DisAgree [2] Agree [5] Reply Report Abuse

  • ca girishkk, m'lore/dxb

    Wed, Mar 09 2016

    @ Ravindra,

    If so.., then do you mean to say that those who engaged in communicating the budget document to the people are dumb (good for nothing)...?

    Jai Ho.., Jai Hind..,

    DisAgree [2] Agree [6] Reply Report Abuse

  • Hariprasad Hegde, Mangalore/Udupi

    Wed, Mar 09 2016

    Here the people who are talking without knowing anything about Employees Provident Fund tax in favor of Government are a big fools. I doubt you guys must have paid or paying any tax, if you would have done then you were not talking in favor of government.

    DisAgree [3] Agree [15] Reply Report Abuse

  • Evans Christopher Sumitra, UDUPI/NEW YORK,USA.

    Tue, Mar 08 2016

    Arun Jaitley wants the rich to become richer and richer as any tax will not affect them but the poor hard working citizens get the biggest blow in all they do. Did Arun Jaitley had any reason for taxing EPF. Probably he does not know what is EPF. This Employees Provident Fund is the hard earned money which they earned when they worked. Now , this finance minister has withdrawn the tax. What is the reason for this. Citizens want an explanation from him.

    DisAgree [2] Agree [16] Reply Report Abuse

  • lukas, malpe

    Tue, Mar 08 2016

    shame on government instead of recovering black money putting more tax on middle class people.

    DisAgree [2] Agree [31] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Tue, Mar 08 2016

    What about Railway ...

    DisAgree [3] Agree [23] Reply Report Abuse

  • Aubb, Kuwait

    Tue, Mar 08 2016


    Another U-turn from Feku Raj

    DisAgree [5] Agree [26] Reply Report Abuse

  • Jk, Udupi

    Tue, Mar 08 2016

    What degree did pappu get it from Cambridge?. According to wikipedia he was there for almost a year.

    DisAgree [18] Agree [10] Reply Report Abuse

  • JP, Mangalore/Dubai

    Tue, Mar 08 2016

    JK, hope you can read and understand. So read the news again and tell us what connection EPF do to with RG is UK visit. Stop fekugiri !

    DisAgree [7] Agree [22] Reply Report Abuse

  • Lydia Lobo, Kadri

    Wed, Mar 09 2016

    JK,

    Google with educational qualification of Indian Politicians and you will be lead to a URL about asking educational qualification of of Indian Ministers. I was shocked to read an article about an RTI being returned from MPO office. Topic ??? Educational qualification of Indian PM Narendara Modi !!!

    Guess what could be the reason to hide year/university he got his Degrees from ? Is he afraid that he too will be grilled as Irani was ? Or, something much more fishy ???

    I had gone for completing some formality but did not take my certificates. Upon being asked by the official I apologised and if he wanted to enquire, I gave my university registration number (don't be surprised, I remember it by-heart even now). The officer checked on the website for authenticity, after which, he ticked out all remaining questions even without asking me about them - you see ? This is called transparency !

    What I cited above about politicians' qualification is not out of my pocket but I read on a search website. I am left with a lot of questions...

    Irrelevant whether RG is a Degree holder of Cambridge or not, whether his mother was a waitress or not, as compared to what fooling around is going with masses of India !

    DisAgree [3] Agree [12] Reply Report Abuse

  • Suman, Mangalore

    Tue, Mar 08 2016

    No doubt ..as Anupam Kher said " Congress people are most tolerant to tolerate Rahul Gandhi "..haha. Keep it up Lydia madam..

    DisAgree [27] Agree [13] Reply Report Abuse

  • Lydia Lobo, Kadri

    Tue, Mar 08 2016

    Suman,

    Anupam Kher confused with Amir's mentioning Kiran that its was Kiran Kher, not Rao.

    How can you cite such retarded people as an example ?

    DisAgree [9] Agree [32] Reply Report Abuse

  • Alphonso Rodrigues, Udupi

    Tue, Mar 08 2016

    Lydia,, I beg to differ.I heard both the speeches Anupam Kher left the audience dumb and spell bound. Each & every aspect and point hit out in perfection. Bharka was confused and just did a damage control.

    DisAgree [16] Agree [10] Reply Report Abuse

  • Amith, udupi

    Wed, Mar 09 2016

    alphonse

    anupham kher said his grandfather was jailed during emergency in 1984 ? .. for your blind faith in him ..emergency was d in 1975 and anupham khers grandfather had moved to simla in 1950 and kashmir pandits massacre happened in 1990 and anupham kher was born and bought up in simla ..now sit and have a garam chai and figure out who is Feku and Maha Feku ..

    DisAgree Agree [1] Report Abuse

  • Suman, Mangalore

    Tue, Mar 08 2016

    Does Pappu knows the full form of EPF ?! as he says mgnrega as narega and Speaker Sir as Speaker madamji..lol

    DisAgree [34] Agree [13] Reply Report Abuse

  • Lydia Lobo, Kadri

    Tue, Mar 08 2016

    Why do you doubt ? Did you find out that he too has a Degree from Yale University ?

    DisAgree [8] Agree [34] Reply Report Abuse

  • Suman, Mangalore

    Tue, Mar 08 2016

    Cambridge University graduate says "I woke up in the morning at night.." lol...

    DisAgree [25] Agree [15] Reply Report Abuse

  • Lydia Lobo, Kadri

    Tue, Mar 08 2016

    Thats the beauty... Humble Cambridge University Degree holder remains to be a MP during 10 years of his government's rule but Yale University Degree holder becomes Education Minister and deserts road accident victims and flees the site !

    DisAgree [10] Agree [44] Report Abuse

  • Anilkumar, Mangalore

    Tue, Mar 08 2016

    It is easy to fool the citizens of our country by such foolish acts. First present a budget with many adverse points such as increased and hidden taxes on many items, no major projects in hand, hidden regulations along with one silly and obviously major issue such as taxing of EPF. All opposition parties and media's attention is diverted to such obvious goof up. No one will oppose other issues and inaction on major points because politicians and media are busy gaining popularity by opposing the foolish issue of EPF. In the end, the Finance minister withdraws the tax and EPF and all are happy forgetting all other issues.
    This has been the tradition in India in presenting budgets in the past and also now.
    Everyone is fooled.!!!!!

    DisAgree [2] Agree [21] Reply Report Abuse

  • Prakash Shetty, Pune

    Tue, Mar 08 2016

    Before presenting Budget Jointly should have sit and discuss with Manmohan Singh.

    DisAgree [5] Agree [44] Reply Report Abuse

  • Lydia Lobo, Kadri

    Tue, Mar 08 2016

    You do have a point Mr. Shetty..

    Not thinking him as a member of the opposition but as an experienced Economist. I am sure MMS would not have refused to discuss implications - he is an honest man !

    DisAgree [6] Agree [37] Reply Report Abuse

  • JK, Udupi

    Tue, Mar 08 2016

    Real question is, can MMS sit and discuss with opposition without the permission of Sonia madam?.

    DisAgree [26] Agree [12] Reply Report Abuse

  • Lydia Lobo, Kadri

    Tue, Mar 08 2016

    Why cut short at speculation ? Try it instead and find answer to your question ??

    DisAgree [4] Agree [25] Report Abuse

  • Lydia Lobo, Kadri

    Wed, Mar 09 2016

    JK,

    As per you, if MMS had functioned only after consulting Sonia Gandhi or took all those economic decision into action after her permission, why isn't BJP's so qualified PM did not straight away do things to please people ? Why did he had to being a EPF slap on a common man which he had to revert later on ?

    Do you think his government too is lacking a woman like Sonia Gandhi ???

    DisAgree [2] Agree [7] Report Abuse

  • geoffrey, hat hill

    Tue, Mar 08 2016

    Or at least with Deve Gowda

    DisAgree [1] Agree [6] Reply Report Abuse

  • Suman, Mangalore

    Tue, Mar 08 2016

    Some duffers thinks its because of Pappu the EPF tax was withdrawn..lol.
    There was huge pressure from low salaried common man to withdrawn this tax. Thanks to our PM.

    DisAgree [41] Agree [8] Reply Report Abuse

  • A.M Shaikh, Dubai, Belapu, Kaup

    Tue, Mar 08 2016

    CHOR MACHAYE SHOR

    DisAgree [4] Agree [25] Reply Report Abuse

  • ca girishkk, m'lore/dxb

    Tue, Mar 08 2016

    As usual U-turn & ullu banaawing.

    DisAgree [3] Agree [33] Reply Report Abuse

  • KRPrabhu, B'luru

    Tue, Mar 08 2016

    Exactly....
    Pappu ka pataki ...!

    DisAgree [19] Agree [6] Reply Report Abuse

  • ca girishkk, m'lore/dxb

    Tue, Mar 08 2016

    Lagtha hai pataki sunthe hi PM Namo ne dar gaya...,

    Parliament full of entertainers...,

    lol

    DisAgree [4] Agree [27] Reply Report Abuse

  • Anirudh P, Bengaluru

    Tue, Mar 08 2016

    Listening to peoples voice by a Govt cannot be termed as "Dargaya".

    The fact is the one who is "Dargaya" coz he is calling press conference and trying to take the credit of EPF tax roll back.

    But all know its not because of him and he is making himself a joker.

    DisAgree [26] Agree [3] Report Abuse

  • Lydia Lobo, Kadri

    Tue, Mar 08 2016

    Aahhaa.. Then, why such a hue and cry when Pappu went on a holiday ? If you can't give credit to him when he raises voice against something wrong, don't also wail as if the parliament halts when he takes a break !

    Hypocrites ! Want a MP to work as much as a PM does and at the same time wants him sit super-glue applied to his mouth when parasitical taxes are imposed !

    Governance with a difference - eh ??

    DisAgree [3] Agree [26] Reply Report Abuse

  • Harish, Mangalore

    Tue, Mar 08 2016

    Suman,

    So you agreed our PM dont know the feelings of common man. After the impact only he realize.

    DisAgree [2] Agree [23] Reply Report Abuse

  • Anirudh P, Bengaluru

    Tue, Mar 08 2016

    Very true,

    Does this Pappu know the full form of EPF ?

    Shameless fellow, claiming undue credit which rightfully belongs to people of India.

    DisAgree [28] Agree [6] Reply Report Abuse

  • ca girishkk, m'lore/dxb

    Tue, Mar 08 2016

    @ Anirudh,

    It appears you are severely suffer from Shriman Rahul Gandhiji phobia.., Only God can help..,

    The real fact is that shriman Rahul Gandhiji sense the pulse of the Hindustani people before our honorable PM & FM.

    My sincere advise is - please take rest & sleep well.

    lol
    Jai Ho.., Jai Hind..,

    DisAgree [4] Agree [19] Reply Report Abuse

  • Anirudh P, Bangalore

    Wed, Mar 09 2016

    Girish,

    Does your Shriman Rahul Gandhiji has any sense ? Forget sensing the pulse.....

    Thank you for your sincere advise. .. but after reading your "sensing pulse by Pappu" statement. .I feel you really need rest and break which might help you to come out from dreamworld.

    DisAgree [12] Agree [2] Report Abuse

  • ca girishkk, m'lore/dxb

    Wed, Mar 09 2016

    @ Anirudh,

    Though i take your thanks with grace & honour.., there is no merit in taking note of your unwarranted counter advise that too from a perennial patient who severely suffer from congi/rahul/Sonia phobia...,

    With this response, I restrain responding further as it may potentially aggravate your phobia suffering...,

    Lol

    DisAgree [2] Agree [9] Report Abuse

  • The Guru, Mangalore

    Tue, Mar 08 2016

    People will now stop calling Pm as Hitler, coz if he was a true hitler then this wouldn't have been taken back.

    Note: Thanks to many corporates employees who signed the petition to withdraw this rule on taxing the corpus of PF withdrawal

    DisAgree [4] Agree [10] Reply Report Abuse

  • geoffrey, hat hill

    Tue, Mar 08 2016

    Ab aaya oont pahaad ke neechey

    DisAgree [3] Agree [25] Reply Report Abuse

  • Rakib, Mangalore

    Tue, Mar 08 2016

    Hope govt will think twice before taking any major decision in future

    DisAgree [1] Agree [18] Reply Report Abuse

  • Flavian, Mangaluru/Kuwait

    Tue, Mar 08 2016

    Joseph Gonsalves,

    Finally, I got my Aadhar card.
    Any chances to be in Rs. 15 Lakh slot?

    DisAgree [2] Agree [15] Reply Report Abuse

  • J Dal, BVR

    Tue, Mar 08 2016

    This why we need a responsible Opposition... If v had a responsible opposition for the last sixty years India would have put behind the china
    ...Being in opposition they did only hangamas and blockades in functioning the parliament now being in the ruling no changes too...

    DisAgree [2] Agree [8] Reply Report Abuse

  • MICHAEL NORONHA, Mysore

    Tue, Mar 08 2016

    Excellent decision. Unfortunately another "U" turn after damaging the image of NDA by proposing it in the budget.

    DisAgree Agree [12] Reply Report Abuse

  • Harish, Mangalore

    Tue, Mar 08 2016

    You think this is the sign good government.
    Good government always think before implementation of any policy not after implementing.

    DisAgree [2] Agree [33] Reply Report Abuse

  • R.Bhandarkar, Mangaluru

    Tue, Mar 08 2016

    Jaitley and P.C. have two things in common...
    They never think of the common man on the streets...
    Shameless...For they are stinking rich...

    DisAgree [6] Agree [37] Reply Report Abuse

  • Lydia Lobo, Kadri

    Tue, Mar 08 2016

    Bhandhu-maam,

    Are you keeping Jootly and PC at par and comparing because of currently going on Karthi episode or did have this feeling in mind last year too ?

    PC is a legal specialist like Jootly al-right but he has a team leader who had an acclaimed economist. Not a tea seller ! Budget an policies are not just dumped in a basked and brought to market to sell but are accessed and analysed before finalizing them with every department head kept in loop.

    Imagine a tea-seller's advise to the finance department as compared to that of an economist ??

    DisAgree [2] Agree [7] Reply Report Abuse

  • R.Bhandarkar, Mangaluru

    Wed, Mar 09 2016

    Lydia Mai....
    I am cross with you.You very well know..why!
    I wont discuss budget and all that kind of things with you...

    DisAgree [1] Agree [4] Reply Report Abuse

  • R.Bhandarkar, Mangaluru

    Tue, Mar 08 2016

    Nobody has asked me about the other 'common'thing.....
    Haaaaaaaaaaaaaaaaaaaaaaaaaa!
    Busy pressing disagrees.......
    O.k O.k that thing you know aa?

    DisAgree [1] Agree [2] Reply Report Abuse

  • Gangaram, Moodbidri

    Tue, Mar 08 2016

    That is why people says you can trust a Pappu and not Feku!!!

    Who has more IQ now Pappu or Jaitley ke saath feku?

    DisAgree [8] Agree [34] Reply Report Abuse

  • Gangaram, Moodbidri

    Tue, Mar 08 2016

    who ever disagreed to my below aomment just read below again!!

    Rahul Gandhi on Thursday demanded that the government should withdraw the proposal for taxing employees' provident fund withdrawals. "EPF is the safety net of the employees and imposing a tax on this is wrong," Rahul Gandhi said.

    DisAgree [13] Agree [57] Reply Report Abuse

  • Lydia Lobo, Kadri

    Tue, Mar 08 2016

    You are right Gangaram... the man whom the BJP Bhakhts tauntingly call Pappu, was on his feet right during the budget was being presented, to demand withdrawal of certain tax on some braile/blind related issue. This is one other demand he made loud and clear.

    Observe... please do observe...

    DisAgree [12] Agree [31] Reply Report Abuse

  • Raj, Bangalore

    Tue, Mar 08 2016

    Vow great..Your Pappu leader is great thinker. Enjoy !!!

    DisAgree [11] Agree [5] Reply Report Abuse

  • Anirudh P, Bengaluru

    Tue, Mar 08 2016

    That’s the sign of Good Government.

    They listen to the genuine suggestion/opinion of people of India.

    Congratulations to all honest tax payers.

    DisAgree [61] Agree [26] Reply Report Abuse

  • Lydia Lobo, Kadri

    Tue, Mar 08 2016

    Anirudh,

    That is not a sign of good government but Loot government. If there were no protests (as it happens in petrol/diesel prices), if people had abided by what this law graduate doing intern-ship in accounts and running trials and errors !

    Don't pat your own back like the Chaiwala does with his 'a chaai-wala can become a PM' ! BJP is not understanding that the citizens very well know how it is looting people's oil price gain by selling petrol for more than double it should have been sold if MMS was at the helm !

    There will be more foot-in-mouth exhibitions to come to the fore !

    DisAgree [2] Agree [6] Reply Report Abuse

  • macho, mangalore

    Tue, Mar 08 2016

    Modi was right he does not have good ministers at his disposal, if you have law graduate as economy minister this is bound to happen, phir se U turn.Even if he removes them he does not haev proper repleacment, you can see YALE graduate in 7 days as HRD minister.
    MODI intention is good ,at implementation he fails coz he has all cow / cattle class people as supporters & ministers.

    DisAgree [7] Agree [46] Reply Report Abuse

  • Joseph F. Gonsalves, Bannur, Puttur / Mangalore

    Tue, Mar 08 2016

    BJP's Jindagi Bhar U-TURN.

    MERA 15 LAKHS???!!!

    DisAgree [12] Agree [54] Reply Report Abuse

  • HENRY MISQUITH, Bahrain

    Tue, Mar 08 2016

    Good job done by opposition parties. Our representatives in parliament must obey the people as we the people of India are more important. Also revise service tax it is silent killer for middle class.

    DisAgree [6] Agree [38] Reply Report Abuse

  • Santosh,K, Mangalore

    Tue, Mar 08 2016

    One more "U TURN" by our central government. Think before ink when you people taking any decision.

    DisAgree [4] Agree [37] Reply Report Abuse

  • Amith, udupi

    Tue, Mar 08 2016

    Please refund my tax for 2 years if you are going to use our army to build bridges to some Sri Sri event in delhi ..these swamies dont pay tax and get full privileges to hold satsangs for 35 lakh people destroy our environment and use our army to their personal accomplishment ..

    DisAgree [4] Agree [33] Reply Report Abuse

  • Santan Mascarenhas, Kinnigoli/Mumbai

    Tue, Mar 08 2016


    Ye to hona yi tha

    But, our surprise is, how could you think of such a tax on retirement benefits ?

    After, All India labour strike for March 10 was d, you opened your eyes.

    DisAgree [2] Agree [45] Reply Report Abuse

  • Gangaram, Moodbidri

    Tue, Mar 08 2016

    Rahul ki jeeth!!!!

    DisAgree [19] Agree [70] Reply Report Abuse

  • Hariprasad Hegde, Mangalore/Udupi

    Tue, Mar 08 2016

    It was our hard earned money with blood and sweat.

    DisAgree [4] Agree [67] Reply Report Abuse

  • KRPrabhu, B'luru

    Tue, Mar 08 2016

    Sathyameva jayathe....
    Jaitly acts first thinks later..!

    DisAgree [3] Agree [56] Reply Report Abuse

  • HENRY MISQUITH, Bahrain

    Tue, Mar 08 2016

    That was a great stunt to divert us from real price rise.

    DisAgree [8] Agree [51] Reply Report Abuse

  • Bhaskar Acharya, Shirva

    Wed, Mar 09 2016

    Where is the sudden price rise? Is it in Bahrain?

    DisAgree Agree Reply Report Abuse


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Title: Finance Minister Arun Jaitley withdraws proposal to tax EPF



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