This is intended to incentivise people in the private sector to use provided fund as a kind of pension, said Jaitley
After an outrage and confusion over the budget proposal to tax employee provident fund (EPF) withdrawal, the ministry of finance clarified on Tuesday that 60% corpus will be taxed only if withdrawn in lump sum instead of being invested in annuity after maturity.
Rather than correcting a bad instrument like NPS, Jaitley and his team of experts preferred to make all pension plans equally bad
Earlier this month, the EPFO tightened the norms for withdrawals of PF accumulations for its over five crore subscribers