New Delhi: Delhi Chief Minister Arvind Kejriwal on Tuesday slammed the Union Government over the Budget proposal to make the Employees Provident Fund (EPF) partially taxed, saying that while the EPF withdrawals of the common man are taxed, black money holders are getting ‘amnesty’.
Kejriwal took to micro-blogging site Twitter to express his angst.
“Spoke to many people. They are v angry. EPF/PPF withdrawals by aam admi taxed, loans of rich waived, black money holders get amnesty,” he tweeted.
Union Finance Minister Arun Jaitley presented the Union Budget 2016-17 in the Parliament yesterday. The FM has made Employee Provident Fund (EFP) and National Pension Scheme (NPS) withdrawals on retirement partially taxable in the Budget.
This essentially means when a person withdraws from EPF, the 60 per cent of the corpus, accumulated post April 1, 2016, will attract tax and the remaining 40 per cent will not.
At present, the deposits, the interest and withdrawals of the EPF are tax free as it is an EEE scheme.
It is not clear if the Public Provident Fund (PPF) will also come under taxation but it would need a modification of the PPF Act.