Govt should urgently roll back proposal on Provident Fund tax: Trinamool Congress

Trinamool Congress, which had strongly opposed the proposed tax on PF corpus, on Tuesday noted the government's promise to consider demands for a partial rollback and asked it to do it at the earliest.

PTI| Last Updated: Mar 01, 2016, 19:19 PM IST

New Delhi: Trinamool Congress, which had strongly opposed the proposed tax on PF corpus, on Tuesday noted the government's promise to consider demands for a partial rollback and asked it to do it at the earliest.

"Trinamool was the first off the block yesterday. We did say that it would be cruel for the retirement benefit to be bruised in a country where virtually no social safety net exists," Trinamool leader Derek O'Brien said here.

"We hear the government is reconsidering ...The faster they do, the better it is," he added.

His comment came after the government, under attack, promised to consider demands for a partial rollback of the proposal to tax 60 per cent of withdrawals from provident fund and a ceiling on employers contribution.

Earlier in the day, Revenue Secretary Hashmukh Adhia said only 60 percent of interest on contributions made after April 1, 2016 will be taxed and that the principal amount of contribution will remain untouched at the time of withdrawal.

However, in the evening a government press note said a proposal to tax only interest and not principal is under consideration.