retirement fund

Central trade unions to oppose taxing of withdrawals from savings schemes

The central trade unions will press for shelving of a proposal, that wants to tax withdrawals from savings schemes, including provident funds, at the pre-Budget meeting with Finance Minister Pranab Mukherjee on January 14. "(The) Finance Minister has invited trade unions for pre- budget consultations on January 14," All India Trade Unions Congress Secretary D L Sachdev told media.
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Labour Ministry opposed the move to bring EPFO activities under service tax net

The finance and labour ministries have locked horns over the issue of bringing retirement fund manager EPFO under the service tax net. The Central Board of Excise and Customs has slapped a notice for recovery of service tax on Employees’ Provident Fund Organisation (EPFO) but the Labour Ministry has opposed it saying the organisation was not doing any commercial activity.
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CBEC slapped Rs. 1200 crore penalty notice on EPFO for evading service tax

It's not clear if dipping tax collections have anything to do with it, but the country's largest retirement fund just got a shocker from the revenue authorities. The Central Board of Excise & Customs has slapped a penalty notice on the Employees' Provident Fund Organisation (EPFO) for evading service tax, arguing that it provides employers fund management services. Fund management falls under the definition of banking & financial services, which are taxable.
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Retirement savings will become taxable on withdrawal in new direct tax code

The Direct Tax Code is a bit of a mixed bag for individuals, particularly the salaried class. Prima facie, the tax liability will reduce significantly as the draft code proposes to tax incomes up to Rs 10 lakh at 10%, that between Rs 10 lakh and Rs 25 lakh at 20% and sum in excess [...]
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