Tax-free EPF contribution: FM Nirmala Sitharaman says move open to review

The Budget proposal of taxing the interest earned on EPF contribution of more than Rs 2.5 lakh a year is open to review, Finance Minister Nirmala Sitharaman said in an interview with The Hindu BusinessLine.

She also said there is no plan to merge EPF with the National Pension Scheme.

“We have taken a call not to discourage those earning more than Rs 15,000 (per month) from being part of EPF. There can always be a discussion on the Rs 2.5 lakh limit. I can go back and review it. But it is a matter of principle. We are only touching those who are putting far more (in EPF) than what an average Indian’s earnings is per month,” she told the publication.

On rising fuel prices, Sitharaman said the Centre and states should discuss and figure a way out to handle the issue.

“Taking it into the GST net can be an option — that will certainly bring it to one rate all over the country. The GST Council can deliberate on it. But then, the fact is, it is both the Centre and states even then,” she said.