"Prime
Minister has recommended the Finance Minister to stop the tax on the PF
withdrawals, and to conduct a thorough study on this."
Centre decides to withdraw tax on Provident Fund
News have surfaced that the Prime Minister has instructed the Finance
Minister to put a hold on the proposed plan to impose taxes on PF
withdrawals. Finance Minister Arun Jaitley is expected to make an
official announcement in this regard shortly.
Employee unions all over the
country have been vehemently opposing the proposed tax on the
withdrawals made on the most important savings of a worker, from the
moment the announcement was made. Most employees depend on their
provident fund savings to meet some of the most important expenses of
their lives, like medical, marriages, building a house, etc. The
decision to impose tax on these withdrawals was condemned by all.
Jaitley had announced a tax on
60 percent of the Employee Provident Fund, and Public Provident Fund.
The government has now said that they had planned to impose tax only on
the PF Interest. But, there was strong opposition for this too. Demands
were made to withdraw this tax.
According to information
available, Jaitley had informed at the meeting of the MPs that the Prime
Minister will have to decide on this. Meanwhile, the Prime Minister has
recommended the Finance Minister to stop the tax on the PF withdrawals,
and to conduct a thorough study on this. Arun Jaitley is expected to
take the required action after consulting with the officials of his
ministry. The Prime Minister’s intervention has restored the peace of
mind of more than 60 lakh Government employees.
