While the government discusses whether (or not) to keep the EPF tax that they recently introduced, let’s take a dive into what this tax really is, in a short video. (Also read: Clearing the confusion on how the EPF is Taxed at Exit ) Our View While the Economic Times suggests that some (or all) of this tax is going to be rolled back on Tuesday , it remains an intriguing topic: Will the government keep this tax free forever? Or will they slowly, over time, tax what you save for retirement? After all if it isn’t taxed when you save it (due to input tax benefits) it is likely to get taxed when you take it out. You get incentivized to save for retirement only when such a tax is applicable when you do reach retirement – that’s how most developed nations do it. Having said that, the EPF tax hurts more because the inputs – for most people – aren’t exactly tax free. … (Read On…)
[via Capital Mind]
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