Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ACCOUNTING STANDARDS :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: empanelment :: TDS :: VAT Audit :: VAT RATES :: due date for vat payment :: form 3cd :: list of goods taxed at 4% :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India
 
 
« General »
 Tax breather for foreign investors: All you need to know
 What the increase in tax collections does not tell us about Indian economy post demonetisation
 India’s crazy retrospective tax on foreign funds will tarnish country’s reputation
 How tax related, PAN grievances can be resolved through E-Nivaran
 Tackling income tax exemptions for equities and agriculture
 Amfi wants tax benefits for retirement plans
 Top five factors which could chart market direction in the coming week
 Tax rate hikes boost shadow economy
 Tax mop-up may decline in new amnesty scheme
 Weeks before Budget, Finance Minister Arun Jaitley lists out benefit of low tax rates
 Second home loan tax benefits

Impact of proposed EPF tax & what you should do
March, 07th 2016

From next month, A. Balasubrahmanian, the CEO of Birla Sunlife Mutual Fund, will start putting more into equity and debt mutual funds. "The Voluntary Provident Fund is going to be taxed so I will stop putting money there and shift to mutual funds," he says.

Capital gains from equity funds and balanced schemes are tax-free after one year. The gains from debt funds are taxed at 20% after three years, but the indexation benefit reduces the tax significantly. In comparison, if the Budget proposal to tax the Provident Fund corpus created after 1 April 2016 is passed, Balasubrahmanian might have to shell out 30% tax on 60% of the corpus at the time of maturity.

Like Balasubrahmanian, millions of EPF subscribers have been forced to rethink their provident fund contributions after the Budget announced the tectonic shift in taxation of retirement benefits. Over five crore subscribers have roughly Rs 8.75 lakh crore invested in the Provident Fund. After a severe backlash from the salaried class, the government agreed to rethink the proposal. Some believe that the proposal will be watered down and only the interest accruing on on new contributions will be taxed. Others think the government will junk the idea.

These speculations have not stopped jittery employees from asking their companies to rejig their compensation structures in the coming appraisal season. "Till last year, employees used to ask for higher basic salaries so that their Provident Fund contribution is also higher. Now they are asking for other benefits instead of a higher Provident Fund," says an HR professional who works for a large telecom firm in Gurgaon.

 

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Work Flow Workflow Software Software Automation Workflow automation Software Design Workflow Design Business Work Flow Workflow automation tools

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions