(a) whether the Centre has proposed to drop earlier suggestions of taxing withdrawals from
Provident Fund, Pension funds and pure life insurance schemes and also on the retirement and
service perks given by employers; and
(b) if so, the details thereof ?
MINISTER OF STATE IN THE MINISTRY OF FINANCE:(SHRI S.S. PALANIMANICKAM)
(a)& (b) Yes,Madam.The draft Direct Taxes Code and Discussion Paper were released in August
2009 for public comments. Based on the inputs received, a Revised Discussion Paper was issued
in June, 2010. It is proposed in the Revised Discussion Paper to provide the
exempt- exempt-exempt (EEE)method of taxation for General Provident Fund, Public Provident
Fund, Recognized Provident Fund, approved pure life insurance products and the pension scheme
administered by Provident Fund Regulatory Development Authority (PFRDA). Further, retirement
benefits received by an employee will be exempt subject to specified monetary limits.