EPF taxation: Labour Minister says govt in discussion with stakeholders

Zee Media Bureau

New Delhi: Clarifying on EPF taxation issue, Labour minister Bandaru Dattatreya on Wednesday said that the government is in discussion with stakeholders and is considering all aspects.

"We are in discussion with stakeholders. There are many stakeholders. Now I cannot reveal many things. Our government is considering all options," Labour Minister Bandaru Dattatreya said when the issue came up during Question Hour.

"We are discussing with all stakeholders. We are in touch with the Ministry of Finance. Government will also consider these issues. Up to now I can say this," he said without disclosing further details on the issue.

Finance Minister Arun Jaitley also said today 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.