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Trade unions rap Govt plot to slap TDS on PF withdrawals

Trade unions rap Govt plot to  slap TDS on PF withdrawals
Opposing the government’s decision to deduct tax at source on pre-mature PF withdrawals, trade unions on Friday said they will ask the Labour Ministry to put the EPFO order in this regard on hold. In a notification issued on Thursday, Employees’ Provident Fund Organisation (EPFO) said it will deduct TDS from June 1 on PF withdrawals where accumulations are over Rs 30,000 and the employee has worked for less than five years.

“We will oppose the government’s move of deducting TDS (Tax Deducted at Source) at PF withdrawals. We have decided to write to the Labour Minister for keeping this notification in abeyance,” All India Trade Union Congress Secretary D L Sachdev said. Another EPFO trustee and Hind Mazdoor Sabha Secretary A D Nagpal said, “We had opposed this move earlier also. Even the EPFO had proposed to exempt cases where accumulations were less than Rs 2,00,000. PF withdrawals should not be taxed.” In the current scenario, the PF withdrawals are treated as taxable income if the cumulative service period of a subscriber with <g data-gr-id="29">present</g> as well as former <g data-gr-id="27">employers</g> is less than 5 years. “Earlier, many regional heads were not deducting the tax on such PF withdrawals where service period was less than five year.” 

“Thus, EPFO got notice of tax demand to many field offices in these cases. The limit of Rs 30,000 is provided under the notification to provide some relief to marginalised people,” a senior official said. “Earlier, there was no exempted slab for PF withdrawals for subscribers with less than five years of service. But now, it’s provided in the notification,” the official added. Centre of Indian Trade Unions President A K Padmanabhan, an EPFO trustee too, said, “While the government is giving so many concessions to investors and industrialists, it is <g data-gr-id="32">injustice</g> to workers. It’s wrong to tax PF withdrawals.” According to the EPFO circular, TDS will be deducted at 10 per cent provided PAN is submitted. However, Forms 15G or <g data-gr-id="31">15H if submitted</g> won’t entail TDS. These are <g data-gr-id="30">declaration</g> that the income won’t be taxable after receiving payment of PF accumulations from the EPFO. 

Bank unions all set to sign wage revision pact with IBA
Bank unions will be formally signing the new wage revision agreement with the industry body Indian Banks Association (IBA) on Monday, one of the heads of the unions said on Friday. The pact, which will benefit 8.5 lakh employees from all the state-run banks, old generation private banks and some large foreign banks, will be signed after years of lengthy negotiations between the UFBU (United Forum of Bank Unions), an umbrella of of nine unions and the IBA. On February 23, the parties had announced a deal under which employees would be given 15 per cent wage hike on pay-slip components, which will result in an additional salary burden of Rs 4,725 crore per year to the system. 

All-India Bank Employees Association (<g data-gr-id="66">AIBEA</g>) general secretary C H <g data-gr-id="62">Venkatchalam</g> and a member of negotiating team of the UFBU said the pact will be signed on Monday.
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