The recent budget whipped up a storm among the citizens when it was announced that withdrawal from the EPF will be taxed. The finance minister proposed “taxing 60 per cent of the withdrawal from employees’ provident fund (EPF) on contributions to be made after April 1, 2016“. The measure smacks of brutality on citizens who pay various taxes.
Let us break it down to the following questions
What is EPF?
Employee’s Provident Fund (EPF) is a retirement benefits scheme that’s available to all salaried employees. This fund is maintained and overseen by the Employees Provident Fund Organisation of India (EPFO) and any company with over 20 employees is required by law to register with the EPFO. It’s a savings platform that helps employees save a fraction of their salary every month that can be used in the event that you are rendered unable to work, or upon retirement.
Why was it wrong to tax EPF?
Rich traders and professionals get away without paying tax and the tax base remains constricted. for instance
1.) This year’s write-off on excise duty for gold and diamonds is Rs 61,126 crore compared to Rs 44,926 crore in 2014-15.
2.) The overall excise and customs duty foregone is to the tune of Rs 4,82,489 crore continuing on the increasing trend which last year was Rs 4,35,756 crore.
3.) In 2014-15, the government is estimated to have foregone Rs 62,399 crore as incentives to corporate taxpayers, up from Rs 57,800 crore a year ago.
Despite all these waivers mentioned above and many others not mentioned, it is only the salaried citizen who is at the receiving end of the brutal taxation laws. Taxing the salaried citizen should be the last thing in mind given the enormous contribution through taxes and expenditure a salaried citizen is making.
What is the Government’s intention?
The government claims raising revenue for the government was not the original intention. Rather it claimed
1.) To make India more insured and pensioned society as the Budget provision provides for no tax on EPF withdrawal if it is invested in pension-based annuities.
2.) The government has also said that the tax will be on the interest rate accrued and not on the principal amount.
The Logical Indian shares the frustrations of many citizens who have voiced their discomfort with the new tax proposal. We demand immediate rollback of the proposed taxation on EPF. If the government cannot bring relief to the citizen, it should not burden them with additional taxes.
To raise your voice against the EPF tax, you can do so through the following link and sign the petition
Retiring after spending 32 years in the Indian Army, Col Chris Rego is helping change the destinies of hundreds of children in conflict-affected North East India through his “White Bullets” initiative. With this initiative, he hopes to bring peace and progress to communities across North East India.
Luminouswanted to bring out the Colonel’s story to the world to inspire and motivate others as it believes that education is a strong tool to empower women. It is supporting Col Rego’s cause through an initiative called #Luminaries – the brave people who stand up for causes like girl child education and make a difference in the society.
Col Rego’s journey started over a decade ago in Manipur when a tribal woman knocked on his door pleading for support for her daughter’s education. Touched by the woman’s story, Col Rego and his wife delved into their savings and arranged for the money for the girl’s education. Two years down the line, the woman returned, this time with a small pumpkin and a shawl that she had knitted, and all the money she had borrowed. Moved and realizing that their money could make lives rather than earn paltry interest, Col and Mrs. Rego embarked on a journey to arrange for sponsorship of many more underprivileged children.
Retiring from the Army, Col Rego took over as CEO of Sunbird Trust, a not-for-profit organization which he founded in 2014. The Trust now sponsor over 1,000 children in 21 locations acrossNorth East India. The centre of Sunbird Trust’s activities is at beautiful Ijeirong, Manipur.
Recognizing Col Chris’s immense work, Luminousacknowledged him as their first Luminary. Through this, they hope to bring more power to his elbow in the notable work he is doing. The Luminousteam travelled to remote Ijeirong village and installed solar products. These solar products will help in providing power to the entire campus 24/7 for the very first time.
The Logical Indian salutes Col Christopher Rego for his untiring efforts and leadership. His efforts are already having a cascading effect on people from across India joining the “White Bullets” endeavour. Quite amazingly, education, in itself so empowering, is merely a means to PEACE. We hope the path illuminated by #Luminary Col Rego and his Sunbird Trust team acts as a beacon for others to follow.
If you too have stories of change, share them with us. And if you want to connect with Colonel Rego, click here.