(NDTV Profit Team)
Budget 2016 proposes to tax part of Employee Provident Fund (EPF)
withdrawals from April 1, 2016, a move that will disappoint nearly six
"In case of superannuation funds and recognized provident funds,
including EPF, the same norm of 40 per cent of corpus to be tax free
will apply in respect of corpus created out of contributions made on
or from 1.4.2016," said Finance Minister Arun Jaitley in his budget
Currently, withdrawals from Employee Provident Fund are completely
exempt from income tax after five years of continuous service, but
once the new measure kicks in, employees will have to pay income tax
on 60 per cent of withdrawal amount from EPF. The remaining 40 per
cent will be tax free, experts told NDTV Profit.
The tax on EPF withdrawal will be charged according to tax slab of the
employees, analysts say.