After facing major backlash over bringing the EPF under the tax net, Finance Minister Arun Jaitley finally roll-backed the proposal of taxing the withdrawal of over 40% of the Employees' Provident Fund (EPF).The common man was unhappy after Jaitley, in his Budget 2016-17, had announced tax on lump-sum withdrawals, which dented the plans of pensioners.
Now, the EPF has become fully tax-free, a huge relief to salaried workers.
People who had just entered the EPF would have been the worst affected because of this proposal.
Currently, a company can contribute up to 12% of the basic component of someone's salary as EPF.
(Image: Indiatimes)