A Clarification regarding taxation of PPF and EPF withdrawals

My Comment on an article "Budget 2016: PPF stays on exemption list, only EPF interest to attract tax" published in the economictimes.com on 01/03/2016 at 10:25 pm.


"Now, they have cleared the doubt. 

It was very ambiguous at the early hours of Budget release today, when they announced that 60% of PPF and EPF withdrawals will be taxed. It implied that principal amount is going to be taxed. 

Now, it is clarified by Revenue Secretary that only interest withdrawal will be taxed. So, it can be acceptable to some extent. 

And, they have further clarified now, that if same interest amount is further invested into annuity schemes, then, they will not be taxed at all. That will be a good option open."

A Comment on deductions towards HRA and levying of tax on old age benefit withdrawals

My Comment on an article "Budget 2016: How FM Arun Jaitley has affected common man's spending & savings plan" published in economictimes.com Dated 01/03/2016 at 6 pm.


"The raising of the deduction limit allowed under section 80GG towards house rent paid 
from Rs.24,000 to Rs.60,000 is a very good move taken by FM. This implies that a person can enjoy a rented accommodation of Rs.5,000 per month which is a bit reasonable from the vision of common man. 

But, the deduction of tax introduced on PPF and EPF withdrawals against contributions made after 2016, is an injustice as the EPF is the only source of funds during one's old age life. Allowing only 40% drawal and taxing the rest amount is a kind of blow to the common man which will leave him insecure as he can't meet his expenses. FM should reconsider this."