AMN /
Labour Minister Bandaru Dattatreya has said he is holding discussions on the Budget proposal to tax EPF withdrawals with the Finance Ministry. Mr Dattatreya yesterday said the the Government will reveal final details on the issue during the debate on the Budget. He said as the Labour and Employment Minister, he is discussing with the stakeholders and he is also in touch with all concerned people, including trade unions and the Finance Ministry.
Mr Jaitley in his Budget for 2016-17 had proposed that 60 per cent of the withdrawal on contribution to employee PF made after April 1 this year will be subject to tax. This would apply to superannuation funds and recognised provident funds including EPF.
Following criticism from employees union and political parties, Mr Jaitley has already indicated willingness to reconsider the proposal. Earlier this week, he said when the debate comes up in Parliament, he will give the Government’s response.