New Delhi, Delhi, India
Citizens give inputs on how EPF can be made more citizen oriented
84% citizens rate Union Budget 2016 as good for the country
47% citizens rate Union Budget 2016 as good for them
LocalCircles, India’s largest citizen engagement platform today announced that approximately 88% of the citizens who were surveyed have asked for a roll back on the proposed EPF taxation. Over 15,000 citizens participated in this exercise and also gave inputs on how EPF can be made citizen oriented. In addition, the citizens also rated Union Budget 2016 from the country’s perspective and their perspective. Below are the details:
Collective Citizen Opinion on proposed EPF taxation:
Qualitative Citizen Inputs on EPF:
There should be no tax on EPF withdrawal after the age of 60 years
If EPF is withdrawn before the age of 60 years, only then tax should be applied on it
A part of EPF should be allowed to be withdrawn in case of an emergency
Taxing 60% of the EPF withdrawal will leave limited incentive for citizens to contribute to Provident Fund
Deduction of EPF should be made voluntary and not mandatory
PF interest rates should be hiked after retirement age
If PF is not withdrawn for a certain predefined period, a bonus must be given
Bonus should be increased with increase in period of non-withdrawal
The process of EPF withdrawal or deposit should be made online like other developing countries
Employees should be allowed to withdraw 90% of EPF amount including employer’s contribution one year before retirement for purchase of a house
The employee should be allowed to take tax-free loan from their EPF for marriage and education of children provided it is paid back within a certain time period.
Citizen Assessment of Union Budget 2016:
Over 100,000 citizens participated in giving inputs for the Union Budget 2016 over a series of polls and discussions pre budget. Citizens collectively were very happy that the core budget strategy proposed by them for Government to “Invest in Infrastructure” with top focus on Roads/Highways and Irrigation was accepted. However, the recommendations collectively made on income tax relief were not accepted in the budget.
LocalCircles is India’s leading citizen engagement platform that connects citizens at local, city and national level to participate in governance and make their urban life better. LocalCircles has more than 1,000,000 citizens connected on it across the country. All data and poll results are an exclusive copyright of LocalCircles so please give due credit.