Zee Media Bureau
New Delhi: Finance Minister Arun Jaitley on Wednesday said that the government is seized of concerns over the EPF issue and will address them during the reply on Budget.
Jaitley further added that the main intention of the government is not to increase revenue only but to ensure welfare society.
In what could possibly dispel fears of the salaried class, Jaitley said, "As far as EPFO is concerned, the intention is not for revenue raising but making India a pension and ensured society."
Breaking from the long-held practice of exemption at all stages, Jaitley's Budget for 2016-17 sought to impose a retirement tax at the time of final withdrawal on 60 percent of contributions made after April 1, 2016, to EPF and other schemes.
However, later the government clarified that the private employees can place 60 percent of investment under annuity for which they will be exempted from tax, making just the interest component taxable.