[New Delhi] Tolerant FM Arun jaitely Accepts Opposition’s Intolerance And Withdraws Proposal to Tax EPF Withdrawal
Finance Minister Arun Jaitley today withdrew his Budget proposal to tax employees’ provident fund (EPF) at withdrawal.
Jaitley had in his Budget for 2016-17 proposed to tax withdrawal of 60 per cent of accumulations in the employee provident fund after April 1, 2016.
This was Opposed by all employees unions as well as political parties.
Arun Jaitley in a suo motu statement in Lok Sabha said
“In view of representations received, the government would like to do a comprehensive review of this proposal and therefore I withdraw the proposal,”
He however stated that 40 per cent exemption given to National Pension Scheme (NPS) subscriber at the time of withdrawal remains.
In his budget proposal, Jaitley had proposed that 40 per cent of the EPF withdrawals would be tax exempt and the remaining 60 per cent would also get the same treatment provided the amount is invested in pension annuity schemes.
Political Parties Are Demanding Freedom To Invest
Theoretically such freedom is desirable, but it is important the government to achieve policy objective by instrumentality of taxation. In the present form, the policy objective is not to get more revenue but to encourage people to join the pension scheme,” Jaitley said explaining the rationale for the taxation proposal.
The proposal would not have impacted 3.26 crore EPFO subscribers drawing statutory wage of upto Rs 15,000 per month. Employees Provident Fund Organisation (EPFO) has a total subscriber base of 3.7 crore.
Tag: Budget 2016
Tolerant jaitely Withdraws Proposal to Tax EPF Withdrawal
Debt Burdened Govt Run Carrier AI To Receive a Boon Of Rs 1713 Crore
[New Delhi]Loss Making National Carrier To Receive a Boon Of Rs 1713 Crore
Air India to receive Rs 1,713 crore The Govt Run airline is surviving on a Rs 30,231 crore bailout package extended by the previous UPA government in 2012 for a period of up to March 31, 2021.
,National carrier Air India, which is expected to slash its net losses by around 40 % this fiscal, will receive Rs 1,713 crore government funding for the next fiscal.
In the Union Budget for the 2016-17 financial year, presented by Finance Minister Arun Jaitley in Lok Sabha today, the Government-run carrier has been allocated Rs 1,713 crore as part of the Rs 30,0231 crore financial bailout package.
The total outlay for the Civil Aviation Ministry stands at Rs 4,417 crore for the fiscal 2016-17.
Organisation such as Airports Authority of India, Directorate General of Civil Aviation, Pawan Hans Ltd, Bureau of Civil Aviation, among others, come under the Civil Aviation Ministry.
Significantly, Air India had earlier this year sought Rs 4,300 crore worth funds from the government for the financial year, starting A[pril 1, 2016 amid its turnaround plan and stiff competition.
Under the Turnaround Plan (TAP), which runs till March 2021, it has already received Rs 22,280 crore including Rs 3,300 crore in the ongoing fiscal.
Minister of State for Civil Aviation Dr Mahesh Sharma had last week said that Air India losses were expected to come down by 40 per cent to Rs 3,529.80 crore by March this year.
The airline had in the financial year ended March 31, 2015, reported a net loss of Rs 5,859.91 crore.
However, its debt burden stood at Rs 51,367.07 crore, including Rs 22,574.09 crore outstanding on account of aircraft loans, in the previous financial year.
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