A comment on PPF and NPS rate cuts

My Comment on an article "Finance Minister Arun Jaitley defends PPF rate cut, attacks Congress" published in economictimes.com Dated 20/03/2016 at 10:10 pm.

"It may be reasonable from economic point of view. 

But, government could have shown some generosity by maintaining the rates of interest intact on PPF and NPS schemes. Actually, it needs to be raised according to the rate of inflation and not to be decreased at any circumstance. 

You are grabbing the meagre income earned by salaried class and other employees who are saving for their future lives and security. Already their income is very low as compared to the increasing inflation rates. 

You can on the other hand offer lower rates on bank deposits and MFs to fill up the deficit in government revenues.That can be tolerated as investments and deposits are extra incomes in most of the cases."

A Comment on FM's withdrawal of the proposal to tax EPF

My Comment on an article "Budget 2016: FM Arun Jaitley rolls back proposal to tax EPF" published in the economictimes.com Dated 08/03/2016 at 10 pm.


"Good action taken by the FM by conceding to the demands of the people in withdrawing the tax proposal. 

Now, members of EPF can withdraw their funds entirely without having to pay any tax. 

NPS contributors have got a rebate of no tax upto 40% withdrawals from their pension funds, which will be a benefit to them from April 2016. 

Further, the FM has withdrawn the proposal to impose tax on Employer Contribution exceeding 1.50 lac per annum which is also a relief to EPF subscribers.

Even if FM comes back later after more better review of the implications, with a proposal to tax the present period interest withdrawals, we may not feel sad."