Will your contributions the Employee Provident Fund (EPF) be taxable? When that became a matter of intense speculation on Monday following FM Arun Jaitley’s Budget speech, the government was forced to ‘clarify’.
Revenue Secretary Hasmukh Adhia confirmed:
1. Only interest accrued on 60 percent contribution to EPF after 1 April 2016 will be taxed; principal amount to remain tax exempt.
2. Small salaried employees with up to Rs 15,000/month income will be kept out of purview of proposed taxation of EPF.
3. All PPF contributions will continue to remain tax emempt, no tax on withdrawal of PPF.
#RollbackEPF
The decision that would have affected nearly six crore people led to much heartburn on social media with #RollbackEPF among the top Twitter trends this morning.
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