Giving relief to about 46 lakh subscribers of over 2,700 private PF Trusts, the Finance Ministry has extended the income tax exemption for them till March 31, 2013. The subscribers of these private provident fund trusts were facing the threat of their retirement funds coming under tax net as Budget 2012-13 was silent on this issue. A Finance Ministry official said the amendment has been incorporated in the Finance Bill which was approved by Lok Sabha yesterday.

In 2006, the then Finance Minister P Chidambaram had made it mandatory for all private PF trusts to seek exemption certificates from the Labour Ministry within a year for enjoying the tax benefits.