EPF withdrawal of more than 40% corpus to attract tax

In case of superannuation funds and recognized provident funds, including EPF, the same norm of 40% of corpus to be tax free will apply in respect of corpus created out of contributions made on or from 1st April 2016.

Shri Jaitley also proposed limit for contribution of employer in recognized provident and superannuation fund of Rs.1.5 lakh per annum for taking tax benefit.

Exemption from Service Tax for annuity services provided by NPS and services provided by EPFO to employees will be given. He also announced reduction of Service Tax on single premium annuity (Insurance Policies) from 3.5% to 1.4% of the premium paid in certain cases.

Source : Equity Bulls

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