In a move that is going to be highly appreciated and warmly welcomed, our esteemed Finance Minister Arun Jaitley has just made an announcement in the parliament that the proposal to tax EPF investments has been withdrawn.
This was a highly-criticized proposal that was announced in the Budget last Monday. The proposal was to tax 60% of the invested corpus in the EPF at the time of withdrawal. This proposal turned out to be the most controversial budget highlight and was admonished by the opposition, financial experts and the public at large.
Over the past week, there were indications about the proposal to be taken back, with news about Prime Minister Narendra Modi’s involvement also coming through. The imminent has happened with the Finance Minister deferring the proposal for now.