But it exempts from that change (and continue with the status quo the tax rate) the superannuation funds that “voluntarily” participate in an offer made by the government.

They will receive a reduced yield on the government bonds they hold, by exchanging a selected set of those bonds for a new set of bonds with lower yields.

Therefore, even an employee earning a monthly salary of Rs. 30,000 will be liable to bear the tax of 30% on their savings on EPF/ETF.

The present government’s income tax policy to attract an effective tax rate of 30% would require a salary above Rs. 500,000 per month. Probably 90% of the working population draws less than 500,000 per month.