EPF tax is unfair, govt should withdraw it, says Rahul Gandhi

Opening another front against the Modi government, Congress vice president Rahul Gandhi, Thursday, demanded that the proposal to tax Employees' Provident Fund (EPF) should be withdrawn.

Last Updated: Mar 03, 2016, 12:23 PM IST
EPF tax is unfair, govt should withdraw it, says Rahul Gandhi

New Delhi: Opening another front against the Modi government, Congress vice president Rahul Gandhi, Thursday, demanded that the proposal to tax Employees' Provident Fund (EPF) should be withdrawn.

Talking to reporters outside the Parliament, Rahul said, “Yesterday, I mentioned in the Parliament about the 'Fair and Lovely' scheme where thieves and people who have stolen money are being allowed to change their black money to white.”

“We have our view on this scheme. What the government is doing on EPF?...this is unfair, EPF is a safety net...people should not destroy it,” he said, adding that he would request the government to withdraw the proposal.

The government has come under all-round attack after Finance Minister Arun Jaitley, in his Budget for 2016-17, 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.

He also proposed a monetary limit for employer contribution in recognised PF and superannuation fund at Rs 1.5 lakh per annum for taking tax benefit.