The Finance Ministry had decided to drop the proposal to bring interest on Provident Fund (PF) contribution under the Income Tax Act. The Union Labour Ministry had pleaded with the finance ministry in this connection.
Union Minister for Labour and Employment Mallikarjun Kharge told reporters here that an official from the Income Tax department had sent the proposal to the Central Provident Fund Trust and submitted a note to the Finance Ministry after the Central Provident Fund Trust increased the interest rate on Provident Fund contribution to 9.5 per cent.
“I spoke to Finance Minister Pranab Mukherjee and pleaded against the move of the I-T department as it would eat into the savings of the working classes and affect their retirement plans.
Mukherjee, after considering various options, decided to give up the move to bring interest on Provident Fund contribution under the Income Tax Act,” Kharge said. Interest on Provident Fund would continue to remain exempted from Income Tax, he added.
Now, the Andhra Pradesh zone would have jurisdiction over mines in Andhra Pradesh, Orissa and Goa.
The Labour Ministry has also sought land for taking up construction of the Regional Office of Employees State Insurance Corporation in Gulbarga, Peenya in Bangalore, subregional office of the Provident Fund in a few places in Bangalore. “Once land is given, we will start construction,” he said.
