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Budget debate focus on tax on EPF

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With pressure mounting to roll back the Budget proposal to tax withdrawals from Employees’ Provident Fund, Finance Minister Arun Jaitley ( pictured) on Wednesday said he was reviewing the matter.
In the Lok Sabha, he said he would address it during the Budget discussion in Parliament. He was responding to Trinamool Congress ( TMC) members raising the issue soon after Question Hour.
TMC Member of Parliament ( MP) Saugata Roy demanded that Jaitley make an announcement on this immediately. His party colleague Sudip Bandhyopadhyay said the Budget proposal to tax the Employees’ Provident Fund ( EPF) — a contributory retirement fund — has caused nationwide concern.
Earlier in the day, too, Jaitley had said, “There have been some reactions [ to the Budget proposal]. When the debate comes up in Parliament, I shall give the government’s response on what decision we finally take.” In his post- Budget interactions with industry and trade chambers, the finance minister said Parliament had the first right to know how the government was treating suggestions on the Budget and the Finance Bill.
On Tuesday, a government statement the demand for limiting tax on 60 The Budget has provided that 40 per If the remaining 60 per cent is converted into annuities and the person concerned “The intention is not revenue generation.
That is not the principal intention here,” Jaitley said.
The finance minister said the intention of the government was to make India an insured and pensioned society.
He also explained that the Employee Provident Fund Organisation has around 37 million members, of which about 30 million earns ? 15,000 a month or less. For them, there is no tax liability.
Business Stanadard, New Delhi, 3rd March 2016

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