07 MAY, 2017 (MAINS)

TODAYS ANSWER WRITING CHALLENGE FROM GS-III

 

Q1. In an attempt to equalize the tax treatment of the National Pension System (NPS) and the Employees’ Provident Fund (EPF), the Union budget has proposed that 60 percent of an investor’s EPF corpus resulting from contributions made after April 1 be taxed at withdrawal. Why has this been done? What have been the consequences of this decision? Discuss. (200 Words)  

 

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