Budget 2016: Online petition against retirement tax goes viral

Aggarwal in the petition, said that "the money which is left after paying more direct/indirect taxes is saved into PPF/EPF and used for retirement planning. But, now even this corpus will be snatched away to a major extent".

By: PTI | New Delhi | Updated: March 1, 2016 2:05 pm
budget, budget 2016, union budget 2016, finance minister, arun jaitely on ppf, epf Representative image.

An online petition against retirement tax has gone viral on social media with nearly 3,000 signups seeking urgent and immediate withdrawal of EPF Tax just a day after it was announced in the Budget.

The petition was started by a finance professional from Gurgaon, Vaibhav Aggarwal, and nearly 3,000 people have already supported his appeal to Finance Minister Arun Jaitley to immediately withdraw the decision to tax EPF.

Watch video: The Big Picture Of Arun Jaitley’s Budget 2016

Also Read: Budget 2016: PPF stays on exemption list, only EPF interest to attract tax

Budget for 2016-17 seeks to impose a retirement tax at the time of final withdrawal on 60 per cent of contributions made after April 1, 2016, to EPF and other schemes.

Share This Article
Share
Related Article

“This is a draconian act and will be a killer blow to the already tax burdened salaried class which pays 30 per cent income tax and 30 per cent taxes in indirect form customs, excise, service tax etc,” the petition said.

Meanwhile, the government today said PPF will not be taxed on withdrawal and only the interest accrued on contributions to employee provident fund made after April 1 will be taxed while the principal will continue to remain tax exempt.

Revenue Secretary Hasmukh Adhia said the proposal, is to tax the interest accrued on PF contributions made after April 1, 2016. “The principal amount will not be taxed and will continue to remain tax exempt on withdrawal. What we have said is 40 per cent of the interest accrued on contributions made after April 1 will be tax exempt and its remaining 60 per cent will be taxed.”

Aggarwal in the petition, said that “the money which is left after paying more direct/indirect taxes is saved into PPF/EPF and used for retirement planning. But, now even this corpus will be snatched away to a major extent”.

Commenting on the petition, Preethi Herman, Country Lead of Change.org said, “Taxing a huge chunk of that fund will affect crores of people. The fact that this Change.org petition by Vaibhav Aggarwal is gathering so much support so rapidly is indicative of the deep unhappiness people are feeling about this move.”

For all the latest Business News, download Indian Express App

  1. U
    Umesh
    Mar 1, 2016 at 7:59 am
    Tax on Epf is unacceptable. This is the only saving ry cl have for their old age children marriages etc and govt eying on that too......shame on this govt
    Reply
  2. D
    Devinder Dhawan
    Mar 1, 2016 at 9:04 am
    Tax on EPF is not at all a por move as it shall adversely affect both the ried and middle cl and should be done away with.
    Reply
  3. J
    jayant
    Mar 1, 2016 at 9:31 am
    . THE BJP goverment always do some act for ried cl person they are robber .non sense finance minister. next election you again not in power.same like previous term of BAJPAYEE JI.
    Reply
  4. J
    jayant
    Mar 1, 2016 at 9:35 am
    BJP ko haram ka paisa chahiya taki amir logo ka tijori bhar sake
    Reply
  5. I
    Ind Ind
    Mar 1, 2016 at 9:12 am
    Tax on EPF is not acceptable unless we put a social security structure in place. We need to make sure the people in their needy days are given best of medical care, a decent pension to live their life with dignity and only then we can even consider taxing EPF. Since such a policy is not in place why r u making life of middle cl more difficult with additional tax burden. We are already paying tax close to 50% of our income, inform of direct tax (income tax etc.) and indirect tax such as service tax, VAT etc. We are allowed to save only Rs. 1,50,000 p.a. in PPF for our needy days, why u plan to tax it? You do not have strong laws to recover money from wilful defaulters but ready to burden us (employees) with more tax at ur whims and fancy. At one end u r reducing corporate tax on the other hand u r putting additional tax on low and middle income groups. How is that fair? This is totally unfair move. We are totally against such move and the government should immediately withdraw it.
    Reply
  6. K
    K Singh
    Mar 1, 2016 at 1:28 pm
    people like jaitly of ddca can never think of curbing black money, they can only make ploy to loot middle cl by even taxing pf.
    Reply
  7. Load More Comments