With the tax on EPF, how safe are your investments?
How safe are your investment and pension funds after the government proposed to tax employee provident fund?
business Updated: Mar 02, 2016 15:01 ISTHindustan Times

With the government proposing to tax the interest accrued on 60% of employee provident fund, this is how your investments are impacted:
Employee Provident Fund: Interest accrued on 60% of the corpus will be taxed during withdrawal. But the tax is applicable only on deposits made after April 1, 2016.
Investment: No tax
Withdrawal: Tax on interest earned on 60% of the corpus.
Condition: The tax on the interest is applicable on those earning salaries above Rs 15, 000 per month.
Read: In defence of EPF tax: Govt not afraid of taking on moneybags
National Pension Scheme: 60% of the corpus will be taxed on withdrawal.
Investment: No Tax
Withdrawal : Tax on 60% of the corpus
Condition: Corpus fully taxable till March 31, 2016
Employer managed pension funds: Just like EPF, interest accrued on 60% of the corpus will taxed on withdarwal. On this as well, this tax is applicable from April 1, 2016.
Investment: No tax
Withdrawal: Tax on interest earned on 60% of the corpus.
Condition: The tax on the interest is applicable on those earning salaries above Rs 15, 000 per month.
Superannuation funds managed by employers: 60% of the corpus will be taxed on withdrawal.
Investment: No Tax
Withdrawal : Tax on 60% of the corpus
Condition: Corpus fully taxable till March 31, 2016
Read: #epfnotax: Petition to withdraw EPF tax gets 4,631 signatures on day 1
PPF & NSC: Public Provident Fund and other small savings schemes like the National Savings Certificate remain tax free.
Investment: No tax
Withdrawal: No tax
Condition: Investments of only Rs 1,50,000 can be made per year.
Pension funds offered by LIC and other private companies: These schemes continue to remain tax-free, if designed under section 80C
Investment: No tax
Withdrawal: No tax
Condition: Interest accrued and bonuses, if applicable, are also not taxable
Read: Only EPF interest to attract tax, withdrawals will be exempted
First Published: Mar 02, 2016 13:40 IST