From Vivek Kaul’s Diary (IND) –
There has been a lot of drama surrounding the changes that the Narendra Modi government has tried to introduce in the Employees’ Provident Fund (EPF) in the recent past. It started with the government trying to tax the EPF.
In the budget speech made in February, 2016, the finance minister Arun Jaitley said: “I propose to make withdrawal up to 40% of the corpus at the time of retirement tax exempt in the case of National Pension Scheme. In case of superannuation funds and recognized provident funds, including EPF, the same norm of 40% of corpus to be tax free will apply in respect of corpus created out of contributions made after 1.4.2016.”
Just the word tax was enough to get the protests going. The social media went berserk. And so did television channels as well as newspapers, protesting vehemently against this move.