Finance Minister, Arun Jaitley today said that the proposal to tax the Employees Provident Fund which was proposed in the Union Budget 2016-17, now stands withdrawn.
Earlier, the entire EPF deposit was tax-free at the time of withdrawal if the employee has completed five years of continuous service.
The withdrawal of the proposal would bring relief to at least 60 lakh subscribers of the EPF. There has been confusion and also resentment towards the proposal. Earlier, there was some clarification that it would not be taxable, if 60 per cent of the amount would be invested in pensions funds.
There were also some reports that only the interest component would be taxed. The withdrawal now is a big relief to subscribers.