‘For salaried man, is this achche din?’

Jaitley's bid to tax EPF leaves salaried class worried about savings.

Written by MANOJ MORE | Pune | Updated: March 2, 2016 8:46 pm
Salaried class. express photo The Budget has proposed to tax 60 per cent of EPF withdrawal amount. Express

FINANCE MINISTER Arun Jaitley’s proposal to tax a part of the Employee Provident Fund (EPF) withdrawal has not gone well with the salaried class and workers’ unions. The Budget has proposed to tax 60 per cent of withdrawal amount from next week. Many called it a retrograde step — one that will hit their corpus badly. This is being seen as second and biggest blow to self-employed professional and salaried class in a week.

“In case of superannuation funds and provident funds, including EPF, the same norm of 40 per cent of corpus to be tax free will apply to corpus created out of contributions made on or from April 1, 2016,” Jaitley said.

Chandrashekhar Iyer, an investment consultant, said the move will affect the salaried class in the country. “All these years, the withdrawals from EPF had been completely tax free. The EPF has enjoyed exempt status. If the proposal of the Finance Ministry gets approval, then salaried class will have to pay tax on 60 per cent of their withdrawal amount,” he said.

PF Tax: Making Sense Of Govt’s Clarification

Sachin Mengale of Bharatiya Mazdoor Sangh (BMS), Pune unit, called it a step that will hit the common man very hard. “The salaried class is already paying the professional tax. Where was the need for the government to tax them further ?” he said. BMS said EPF is the salaries class’ biggest saving and hope.

Sunil Pataskar, secretary of the Hindustan Antibiotics Mazdoor Sangh, said the move to tax EPF was a big blow for the salaried class which relies heavily on its saving in the fund. “The EPF is like an oxygen for the salaried. If the government wants to disrupt the oxygen supply, then the common man is going to be in trouble,” he said. Pataskar said if the FM goes ahead with his proposal, they would undertake a signature drive to oppose it and submit it to Union Minister Prakash Javadekar with the hope that it would be forwarded to the Prime Minister.

Pravin R, a marketing executive, said,”I thought the government was talking of bringing in acche din…but it seems to be doing exactly the opposite.”

Keystrokes: EPF Tax

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  1. K
    Mar 1, 2016 at 6:56 am
    one of the worst ways to implement lofty pseudo-socialism by killing the golden goose of ried middle-cl...shame on BJP government
    1. P
      Mar 1, 2016 at 9:45 am
      No logic in this double taxation of ried cl other than some special interest lobby being behind it..
      1. G
        Mar 1, 2016 at 4:49 am
        This is the first time I am noticing there is no praising comments ( which otherwise is in hundreds !)......very big surprise...or some pointer...
        1. S
          S.Nagaraja Rao
          Mar 1, 2016 at 7:55 am
          No more 'ache din' either to ried cl or middle cl.FM has cheated all.While the prices of dals, rice etc, are rising on one side, there is no hike in income tax slab limit. The purse of bread winners are becoming thinner and thinner, no incentives. Further he has imposed cess, which will push up the prices.No where the FM has said about arresting rising prices. It is sad to note that he extended support of Rs.25000 crores to Banks, when they failed to recover the bank loans. The Bankers should be held responsible.The peoples' money is going into the pockets of evaders.
          1. V
            Vilas Apte
            Mar 1, 2016 at 3:34 am
            BJP has a history of being against the ried cl, so this action of their's does not come as a surprise.
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