Indeed these are high profile citizen of India. Our FM is senior advocate and his fees for one case is in six figure. They don't know any thing about a middle class. An employee give more than 30 years to nation and collect some amount for his life after retirement. It is ravin.

anil wrote:

Indeed these are high profile citizen of India. Our FM is senior advocate and his fees for one case is in six figure. They don't know any thing about a middle class. An employee give more than 30 years to nation and collect some amount for his life after retirement. It is ravin.

I agree.This proposal by the FM, evoked a strong opposition from the employee's representatives on the Board of Empoyee's Provident Fund Organization.  Further the FM clarified that this is in line with the National Pension System and other Pension Plans, where the Government has proposed to exempt Forty percent of the corpus from tax at the time of withdrawal.

 

The intention of taxing was to move retirees to a secured pension. The principle amount would be given to nominee when pension ceased. It is a good advice but it is seen as a penalty. Taxation was being used here as a tool to motivate people to move towards pension. It should have been done with some promotion and communication. Perhaps those who opt for getting pensions from 60% PF amount could have been rewarded.

I am sure the PM, FM and his team of financial experts are not fools to come up with a supposedly unpopular proposal which has given enough ammunition to the opposition, if there was no good coming out if it and is beneficial in the long run. For a population that has gotten used to freebies, folrs and perks, some hard hitting measures become difficult to come to terms with. I guess a free this snd s free that would ptobsbly hsve made you and others very happy..

http://m.firstpost.com/business/budget-2016-calm-down-folks-taxing-epf-may-not-be-all-that-bad-say-experts-2650556.html

Finance Minister announced that EPF contributions made after April 1, 2016 will no longer be a part of EEE tax regime. The FM added in case of Superannuation funds and recognized provident funds, including EPF the same norm of 40 percent of corpus to be tax free will apply in respect of corpus created out of contributions made after 1-4- 2016.

Experts feel to wait for the fine print. They expect amendments will be made. Hence , I'm of the opinion we should wait. 

@Usha's comments are not clear. The PF class of our population does not get freebies and whatever it gets everybody gets. I have supported te effort of Finance Minister to move retirees to secured pensions. Taxation here was being used as a concession as well as a penal tool. Far more brilliant FM and PM's have also many times bungled in executing even good schemes. as Rambabu says the last word  is yet to be said. :et us wait before condemning everything on the past regimes a safe and reliable alibi.

Nowhere, the member you said, contemned the past regimes. I agree with Usha who expressed in clear terms how the people are habituated to  Freebies offered by the respective governments.

Inflation is falling but prices are rising, GDP is rising but jobs are falling, savings are falling and interest rates are being cut. A common man does get adversely affected freebies or no freebies.