tag:blogger.com,1999:blog-7414102256417016270.post3715518727111045510..comments2023-04-06T15:31:56.559+05:30Comments on General Awareness: [Editorial # 76] Provident fund reform needs more clarity : The HinduTShttp://www.blogger.com/profile/03897947340389519247noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-7414102256417016270.post-74672257517017154412016-03-07T17:04:04.413+05:302016-03-07T17:04:04.413+05:30Swarnajayanti Gram Swarozgar Yojana (SGSY); The...Swarnajayanti Gram Swarozgar Yojana (SGSY); The objective of the scheme is to bring the self-employed persons above the poverty line by providing them income-generating assets through bank credit and Government subsidy. <br />Indira Awas Yojana (IAY): The Government is implementing Indira Awas Yojana (IAY) with the objective to provide dwelling units, free of cost, to the Scheduled Castes (SCs), Scheduled Tribes (STs), and freed bonded labourers, and also the non-SC/ST BPL families in rural areas. <br />National Rural Health Mission (NRHM): The Government has recently launched National Rural Health Mission which seeks to provide effective health care to rural population including unorganized sector labourers.<br />Janshree Bima Yojana (JBY): Janshree Bima Yojana (JBY) a group insurance scheme implemented by LIC is available to persons between age of 18 to 60 years and are living below or marginally above poverty line. Anonymoushttps://www.blogger.com/profile/09189375892857247784noreply@blogger.comtag:blogger.com,1999:blog-7414102256417016270.post-9183047651009104292016-03-07T11:11:40.464+05:302016-03-07T11:11:40.464+05:30National Pension Scheme
It is a voluntary defined ...National Pension Scheme<br />It is a voluntary defined contribution retirement savings scheme. The employee contribution is fixed at 10% and is also the same for the employer.<br />Central and state government employees along with the Public sector employees mandatory contributing in NPS are restricted from availing any other form of pension scheme under the government.<br />Minimum amount per contribution- RS.500<br />Minimum number of contributions - 1 per year.<br />Minimum annual contribution-Rs 6000.<br />There is no limit in the maximum contribution.Anonymoushttps://www.blogger.com/profile/09189375892857247784noreply@blogger.comtag:blogger.com,1999:blog-7414102256417016270.post-3319060863542270652016-03-07T10:57:17.637+05:302016-03-07T10:57:17.637+05:30It is a measure which is taken by the State to mai...It is a measure which is taken by the State to maintain individual or family income. This is done when some or all sources of income are disrupted, terminated or due to some circumstances heavy expenditures have incurred.<br />Provided in our DPSPs<br />1.Just and humane conditions of work.(Article 42)<br />2.Public assistance in certain cases.(Article 41)<br /> Examples<br />Employees’ State Insurance Act, 1948 (ESI Act)<br />Employees’ Provident Funds Act, 1952<br />Workmen’s Compensation Act, 1923 (WC Act)<br />Maternity Benefit Act, 1961 (M.B. Act)<br />Payment of Gratuity Act, 1972 (P.G. Act)<br />Anonymoushttps://www.blogger.com/profile/09189375892857247784noreply@blogger.comtag:blogger.com,1999:blog-7414102256417016270.post-8276547087346235032016-03-07T10:27:38.567+05:302016-03-07T10:27:38.567+05:30Directive Principle of State Policy in the Constit...Directive Principle of State Policy in the Constitution provides that the State shall within the limits of its economic capacity make effective provision for securing the right to work, to education and to public assistance in cases of unemployment, old-age, sickness and disablement and undeserved want.<br />Employees’ Provident Funds & Miscellaneous Provisions Act, 1952. The said Act was passed to fulfill this purpose.<br />Employee Provident fund is only applicable to the salaried employees. It is a fund in which both the employer and the employee have to contribute certain amount of their salary in a periodic manner.<br />Presently they need to contribute 12% of the basic salary for employee. And employer contributes 12% of "basic salary,dearness allowances and retaining allowance". This contribution of employer is bifurcated into two parts. Firstly to provident fund. Secondly to employees pension scheme. A sum equal to 8.3% or up to Rs.6500 is contributed to pension scheme. And 8.33% of Rs.6500 i.e., Rs.541 will go to pension fund.<br />The Employees' Provident Fund Organisation is statutory body of the Government of India, which manages such fund. The apex decision making body is the Central Board of Trustees.Anonymoushttps://www.blogger.com/profile/09189375892857247784noreply@blogger.comtag:blogger.com,1999:blog-7414102256417016270.post-91059131279947600092016-03-03T15:34:36.186+05:302016-03-03T15:34:36.186+05:305.What is the current debate on the new provision ...5.What is the current debate on the new provision of taxation on EPF as announced in the budget?<br /><br />Ans. The Budget 2016 has proposed making 60% of employee contribution EPF corpus taxable for contributions after 1.4.2016. Till now withdrawal of EPF corpus after 5 years of continuous service was fully tax exempt. The new provisions indicates that if the EPF is not used for buying an annuity then 60% of that portion of the corpus which is built from the employee contributions made w.e.f 1.4.2016 would be taxable. <br /><br />This has been done to bring EPF on par with NPS where 40% of the withdrawals on maturity have been made tax free.<br /><br />As per the FM's speech: "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 after 1.4.2016."<br /><br />The explanatory memorandum explaining the provisions of the Finance Bill says: In order to bring greater parity in tax treatment of different types of pension plans, it is proposed to amend section 10 so as to provide that in respect of the contributions made on or after the 1stday of April, 2016 by an employee participating in a recognized provident fund and superannuation fund, up to 40 % of the accumulated balance attributable to such contributions on withdrawal shall be exempt from tax. <br />Under the existing provisions, any payment from an approved superannuation fund made to an employee in lieu of or in commutation of an annuity on his retirement at or after a specified age or on his becoming incapacitated prior to such retirement is exempt from tax.<br /><br />It is proposed to amend the said provisions so as to provide that any payment in commutation of an annuity purchased out of contributions made on or after the 1stday of April, 2016, which exceeds forty per cent of the annuity.<br /><br /><br />Anonymoushttps://www.blogger.com/profile/00794712785663307403noreply@blogger.com