Finance Minister hints at review of tax limit on EPF -Raghuvir Srinivasan, Parvatha Vardhini C and Aarati Krishnan
No plan to merge the EPF with NPS, says Nirmala Sitharaman.
Finance Minister Nirmala Sitharaman has said there is no intent to discourage higher income earners from saving with the Employees Provident Fund (EPF) and that she was open to reviewing the contribution limit of 2.5 lakh a year for tax-free interest, imposed in the recent Union Budget.
Reiterating that the EPF will continue to remain in its present form, the Minister said there was no plan to merge the EPF with the National Pension Scheme.
“We want to continue with the EPF. We understand that there is a certain comfort with people, particularly middle income earners when they are assured of a return,” she said in an exclusive interview with Business Line.
“We have taken a call not to discourage those earning more than 15,000 from being part of EPF,” she added.
There can always be a discussion on the 2.5 lakh limit. I can go back and review it. But it is a matter of principle. We are only touching those who are putting far more than what an average Indian’s earnings is per month,” she added.
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The Hindu, 22 February, 2021, https://www.thehindu.com/business/Economy/nirmala-sitharaman-interview-finance-minister-hints-at-review-of-tax-limit-on-epf/article33897077.ece?homepage=true