EPF issue under consideration

FPJ BureauUpdated: Friday, May 31, 2019, 05:35 PM IST
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New Delhi : On the vexatious proposal to tax PF, the government has made it clear that the matter is under its consideration and a final decision would be taken by Finance Minister Arun Jaitley.

Jaitley, meanwhile, has said the objective behind the proposal was that no tax is levied on 40 per cent of the withdrawal which can be used for meeting retirement commitments. The balance, he explained, can be converted into annuity and the person would get a regular pension and he does not pay tax.

“There is also a change in the law that when inheritance comes in there is no tax payable,” he said. “This was intended to incentivise people in the private sector to use it as a kind of pension fund and to disincentive those who otherwise would indulge in consumption of that fund.”

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