EPF nonsense
Employee Provident Fund (EPF) was started in 1952.
It was a provision in lieu of the government's inability to provide social security to the working class on retirement, and was thus kept tax free.
In Apr'22, 70 years after its inception, EPF became taxable (for interest on contributions above 2.5 lacs / year).
Maybe, the government now feels that the working class can take care of their own financial security. more
It was a provision in lieu of the government's inability to provide social security to the working class on retirement, and was thus kept tax free.
In Apr'22, 70 years after its inception, EPF became taxable (for interest on contributions above 2.5 lacs / year).
Maybe, the government now feels that the working class can take care of their own financial security. more
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Given the member antagonistic policies, for a good chunk of the contributors, it money lost for good, clearly proven by the huge corpus of unclaimed (actually unclaimable) funds in crores of inoperative accounts. more
Nov 05
it may be true that higher salary people are dumping their earnings for tax free benefit. If we strictly see their % will be minimal. Most of these high salary brackets invest in other modes than this kind of fixed benefit. I wish to add a point here in line with the main post, the EPS payment is not increasing since inception, where as the corpus is growing. Could not understand why this retirement social security fund administrators are not thinking to provide benefit for the retired people after several years of contributions! more
Nov 04
It is correct that EPFO is started for social security to service class by their own in the form of PF contribution and govt. provide tax benefit on intetest earned on your PF corpus. As we are aware govt. is declaring interest on higher side then what is current in market for secured investment. There is a huge burdon to govt. for this differencial interest. Govt. introduced this is a scheme is for retiement planning and not for other investment platform. It come to notice of govt. many high salary earner class dumping there investment in EPFO as Voluntery PF for tax free interest income. Therefore govt. kept this ceiling of Rs. 2.5 lakh by memeber contribution. As per this, if salary of person Basic+DA salary( other other allowance, which is more then 50% of CTC) is not more then Rs. 1,74,000 Per Month, PF @12% does not taxable as it does not exceed Rs.2.5 Lakhs ceiling. This is for check to high salary earner class who use EPFO and tax free, high return and secured investment platform and not as a social security option. more
Nov 04
truly said there are lot of business houses who do not pay taxes and have lot of shell companies .It is only the salaried people who get caught in the tax net and with the prices of commodities and inflation at such level and increment does not meet the inflation it becomes hard forthe middle class to meet their basic requirements. With no increase in the tax benefit for the salaried class since so many years they are being snubbed more
Nov 04
