Podcast: New PF norms show govt is still unclear about retirement schemes
The government doesn't seem to have thought through the entire retirement planning
The NDA government has done one more U-turn on provident fund norms. On Monday, the labour ministry said withdrawal from the PF can be allowed for fund usage in housing, major medical treatment for self and family members, medical, dental and engineering education of children, and for their marriage.
The account holders/ employees were earlier restricted from withdrawing their entire PF balance until the age of 58.
Earlier this month, the EPFO had deferred until 30 April implementation of new norms that restrict withdrawal of the corpus once the subscriber remain unemployed for more than two months.
The latest development has come after a slew of flip-flops by the government, that has given rise to discontent among the middle-class. At the outset, the latest relaxation seems to be an attempt to set its record straight.
But, is it really a move which will help the investor? Harsh Roongta, a Certified Financial Planner, doesn't think so. "I don't think the government has though through how the entire retirement fund issue should be handled," he says.
Listen to Firstpost's interview with Roongta below:
The expanded list of PF withdrawal exemption would encourage wrong-doers
TDS is deducted at the maximum marginal rate of 34.608 percent if a member fails to submit PAN or Form 15G or 15H
At present, only two fund houses have retirement-linked pension plans — Franklin Templeton Pension Fund and UTI Retirement Benefit Pension Fund.