New Delhi, Mar 5: Sensing outrage among people, Government is all set to restore some of the tax benefits on Employees Provident Fund (EPF). Reportedly, Prime Minister Narendra Modi himself intervened and asked Finance Ministry to reconsider the amendments under which EPF money will be taxed.
Following after Modi's directive, Finance Ministry has reviewed whole proposal. Sources say that Ministry will announce some relief to taxpayers most likely on Tuesday.
Earlier, while presenting Budget in Parliament, Finance Minister Arun Jaitley announced that PPF amount will be taxable. Later, facing protest from Opposition and all section of the society, Government clarified its stand that PPF will not be taxed on withdrawal.
Centre announced that only the interest that accrues on contributions to employee provident fund made after April 1 will be taxed while principal will continue to be tax exempt.
"Only interest accrued on 60% contribution to EPF after April 1, 2016 will be taxed", Revenue Secretary Hasmukh Adhia said
He further said, "Small salaried employees with up to Rs 15,000/month income will be kept out of purview of proposed taxation of EPF".