Technoglitch
Core Member
ou just have to count the number of new cesses introduced in the last decade to be sure of this. It's also not about giving up subsidies, which Indians have begun to do rather speedily—the latest example being the surrender of 7.5 million LPG connections in little over a year.
The rage over the new tax on withdrawal from employees' provident fund (EPF) is because the government is seen to be attempting to steal the hard-earned savings of salaried private sector employees. Unlike government employees, private sector workers do not have guaranteed pension or healthcare plan to take care of their sunset years.
Ever since news of the EPF tax broke, people have been worrying about how much of an impact it will have on their nest egg. TOI did the calculations and as the table above shows, if the government goes ahead with the tax on the interest accrued on PF contributions after April 2016, a person starting his career after this could lose 18% of his entire retirement savings at provident fund maturity. Even those in the middle of their career face the prospects of losing between Rs 10 lakh and Rs 20 lakh (12% to 8%) of their retirement corpus.
Budget 2016: A 25-year-old could lose 18% of retirement income - Times of India
The rage over the new tax on withdrawal from employees' provident fund (EPF) is because the government is seen to be attempting to steal the hard-earned savings of salaried private sector employees. Unlike government employees, private sector workers do not have guaranteed pension or healthcare plan to take care of their sunset years.
Ever since news of the EPF tax broke, people have been worrying about how much of an impact it will have on their nest egg. TOI did the calculations and as the table above shows, if the government goes ahead with the tax on the interest accrued on PF contributions after April 2016, a person starting his career after this could lose 18% of his entire retirement savings at provident fund maturity. Even those in the middle of their career face the prospects of losing between Rs 10 lakh and Rs 20 lakh (12% to 8%) of their retirement corpus.
Budget 2016: A 25-year-old could lose 18% of retirement income - Times of India
