India’s salaried class feels squeezed—not because they don’t want to pay taxes, but because the system increasingly treats retirement savings as a luxury. (AI image)

For a country that prides itself on a thriving middle class, India’s tax treatment of retirement savings has begun to feel oddly out of step with economic reality. Over the past few years, a series of amendments—presented as “rationalisations”—have quietly created a minefield for salaried employees who believed they were doing the right thing by saving for their future.Three provisions stand out for the burden they impose: taxation of employer contributions to provident and superannuation funds beyond ₹7.5 lakh; yearly taxation of accretions on such excess contributions; and taxation of interest earned on the employee’s own PF contributions above ₹2.5 lakh. In isolation each may appear technical. Together, they are reshaping retirement planning in ways that leave employees with little clarity, greater financial anxiety, and a rising tax bill on income they do not even receive today.A tax before the benefit arrivesThe first shock for employees came with the Finance Act, 2020, which capped employer contributions to recognised PF, approved superannuation funds and NPS at ₹7.5 lakh per year. Anything above that—common for senior professionals, mid-level employees in high-cost cities, and those in organisations with generous retirement policies—became taxable as a perquisite.But what stings more is that annual accretion—interest, dividend or similar growth—on this “excess contribution” is also taxed every single year. This is a tax on notional income, long before the employee sees a rupee of it.Many describe this as an upfront penalty on saving. Unlike bonuses or cash payments, retirement contributions are locked in for the long term. Yet tax is now collected today on money that may only be received decades later. That mismatch between tax incidence and actual receipt has become a major pain point.When exemption isn’t really exemptionThe hardship intensifies when the National Pension System comes into play. While the government justified taxing excess employer contributions by calling PF, superannuation and NPS an “EEE regime”, the law doesn’t fully support that claim.Under Section 10(12A), up to 60% of the NPS corpus can be withdrawn tax-free upon closure of the account or opting out of NPS. The remaining 40% must be used to purchase an annuity plan from a life insurance company, and the pension received from this annuity is fully taxable. Employees therefore argue that the premise of an entirely exempt regime is not accurate.Taxing the employee’s own PF savingsThe Finance Act, 2021 introduced another hit: PF interest earned on the employee’s own contribution beyond ₹2.5 lakh per year is taxable.For many mid-career employees, PF is the only disciplined savings instrument they rely on. A high PF contribution isn’t a luxury; it is a way to secure the future in the absence of universal social security.Yet the law now characterises high contributions—even when mandatory or part of salary structure—as an attempt to “enjoy full exemption”. The sting is sharper for those whose basic salary is high enough that the statutory 12% PF contribution itself may cross the ₹2.5 lakh threshold, triggering tax on interest even when the employee never intended to “over-contribute”. This change is seen as especially harsh in a country where inflation erodes purchasing power and pension adequacy is already a concern.“Also, these changes all appear to be part of the ultimate aim of the government to do away with all deductions and exemptions and make the ‘new tax regime’ the only regime available for all taxpayers,” says Ameet Patel, partner, Manohar Chowdhry & Associates.The bigger picture: When rules punish good behaviourAcross these provisions, a consistent theme emerges:India now taxes retirement savings more aggressively. Employees who save diligently, especially mid- to senior-level workers, face:

The result is that long-term savings face multiple tax points.Why reform is requiredThere is growing consensus across industry bodies that these provisions need urgent review. The argument is not about giving employees a windfall—it is about ensuring fairness and a safety net. With an ageing population, lack of a universal social security system applicable to all citizens, and rising cost of living, the existing provisions are detrimental . India’s salaried class feels squeezed—not because they don’t want to pay taxes, but because the system increasingly treats retirement savings as a luxury rather than a necessity. What was once a predictable, trusted savings pathway is now layered with caps, tax triggers, and compliance complications.“And this compounds the problems that the ageing population faces when insurance companies either refuse to issue new health policies to senior citizens or charge such high premia on the policies that having a Mediclaim policy becomes extremely expensive for such retired persons. As and when such a person needs large amounts to be paid to hospitals for medical treatments, the depleted savings are often inadequate and the entire family is put under huge financial stress,” concludes Patel.

US President Donald Trump (AP)

TOI correspondent from Washington: US President Donald Trump is claiming that India is keeping him happy by meeting his demands to stop buying Russian oil, warning that failing to do so will result in his raising even higher tariffs “very quickly.”“They (India) wanted to make me happy…Modi is a good guy….he knew I was unhappy…and it was important to make me happy,” Trump told reporters on Air Force One, interjecting as US. Senator Lindsay Graham was explaining how the threat of tariffs is effective in forcing countries to stop buying Russian oil as part of Washington’s purported efforts to starve Moscow of oil revenues that it says is funding the war.Graham himself claimed that he was at Indian Ambassador Vinay Kwatra’s residence a month ago and “all he (the ambassador) wanted to talk about was how India is buying less Russian oil.”“And he asked me to tell the President to relieve the 25% tariff… this stuff works… I really believe what he did with India is the chief reason why India is buying substantially less Russian oil,” Graham asserted. Graham is the chief proponent of the Sanctioning Russia Act of 2025, a legislation designed as a “sledgehammer” to force a conclusion to the Russia-Ukraine war by targeting the economic lifelines of the Russian military. Introduced in April 2025 as a legal shield for the executive to protect it from challenges to tariffs in courts, as is currently happening, the bill authorizes the President to impose secondary tariffs ranging up to 500 percent on imported goods, giving him “maximum flexibility” to act as a negotiator. The bill includes a waiver provision, meaning the President has the ultimate discretion over whether or not to actually implement the tariffs, fully ceding to the President what has long been a legislative domain. Graham has explicitly named China, India, and Brazil as primary targets, as they currently purchase roughly 70% of Russia’s oil exports. He claimed on Sunday that the bill now has 85 co-sponsors and indicated it could move forward in the Senate, which resumed its session on Monday.Graham appeared to be getting ahead of an expected US Supreme Court ruling this month on the legality of the current administration’s tariffs that is expected to go against the administration. The case, Learning Resources Inc. v. Trump, argued by Neal Katyal last November, challenges the President’s use of the International Emergency Economic Powers Act (IEEPA) to impose country-level “reciprocal” tariffs.The Trump-Graham remarks left unclear for now the status of the current 25+25 percent tariff on India, the additional 25 percent being punitive taxes for buying Russian oil. While Trump claimed India is making him happy by tapering down Russian oil purchases, Washington appears intent on keeping the tariffs in place till the court ruling, while waiting to see if New Delhi meets a particular publicly undisclosed target, even as India is ramping up purchase of energy from the US.According to industry estimates, Russian oil Imports in December fell to a three-year low of approximately 1.2 million barrels per day (bpd)—a 40% drop from the peaks seen in mid-2025 – after a brief spike in November. Imports are expected to fall below 1 million bpd in the coming months of 2026, a level not seen since the early stages of the Ukraine conflict. Last week, the Indian government ordered all refiners to submit weekly disclosures of their oil purchases from both Russia and the US, ostensibly for use in ongoing trade negotiations with the Trump administration.

US vice president JD Vance thanked the Secret Service and the Cincinnati police for the swift action after his house was attacked. Earlier, Vance’s home in Cincinnati was attacked at night, with several windows smashed. Secret service agents rushed to the East Walnut Hills residence in the early hours of Monday, and a suspect has been taken into custodyIn a post on X, Vance said, “I appreciate everyone’s well wishes about the attack at our home. As far as I can tell, a crazy person tried to break in by hammering the windows. I’m grateful to the secret service and the Cincinnati police for responding quickly. “He made a request to media houses and said, “We try to protect our kids as much as possible from the realities of this life of public service. In that light, I am skeptical of the news value of plastering images of our home with holes in the windows.”

Where was Vance when his house attacked?

Vance, in his tweet, informed that at the time of attack, he was not present at the home. He was in the Washington DC. In a post on X, Vance said, “We weren’t even home as we had returned already to DC.”Last week, Vice President Vance did not join Trump and other senior administration officials at Mar-a-Lago to watch the America’s operation in Venezuela unfold, amid concerns that his presence could compromise operational security.Instead, the vice president monitored the operation via a secure video conference before flying back to Cincinnati once it concluded. His office said he was “deeply integrated in the process and planning”.In a statement, Vance’s office said that due “to increased security concerns, the administration has aimed to limit the frequency and duration of the vice president and president being co-located away from the White House”.Police and secret service personnel were seen inside the property after the incident, though it is believed that neither Vance nor his family were at home at the time of the attack.The incident came after heightened security in the area over the New Year holidays. Roads surrounding Vance’s residence had been closed for several days until Sunday, with checkpoints set up and residents asked to expect law enforcement presence, according to city officials.

Los Angeles Lakers forward LeBron James (23) gestures during the first half of an NBA basketball game against the Memphis Grizzlies Sunday, Jan. 4, 2026, in Los Angeles. (AP Photo/Ethan Swope)

Every Lakers’ game with LeBron James feels like a brush with history, but Sunday night against Memphis Grizzlies, the air in the Crypto.com Arena just felt different. The 41-year-old hasn’t just been defying the stereotypes but also put up a veteran performance that took over the record books. In the second half with a clinical pass, LeBron James officially moved into 2nd place all-time in total assists (combining regular season and playoffs), passing Chris Paul.Combined with his existing throne as the NBA’s all-time leading scorer, LeBron is now the first and only player in the history of the sport to be 1st in points and 2nd in assists. For those who have followed him since the Chosen One cover in 2002, this isn’t just a stat, it’s a reflection of greatness unfolding in real time.

LeBron James is the ultimate dual-threat

LeBron James is not filling space on the court. From rebounding, scoring, and assisting his teammates on the court to cheering from the courtside, James makes sure he’s there through and through. Scoring points requires a single focus on the rim, but assisting requires the opposite: an unselfish and eagle-eyed vision to know who’s where.During the Lakers’ 120–114 victory, LeBron ran back and forth on the hardwood for 37 minutes and scored 26 points and 10 assists along with 7 rebounds, 2 three-pointers, and 6 field goals. With 10 assists, he brought his career total to 13,793 assists, Chris Paul. The only target who’s left on the list is now the legendary John Stockton at #1.This is LeBron’s 23rd NBA season, the first player to record such a long career on the rectangle, yet he doesn’t seem to be stopping. Guiding a roster filled with superstars like Luka Doncic and Austin Reeves, James is doing much more than player responsibilities.

LeBron James’ 50,000-point longevity

LeBron James officially surpassed the 50,000 total career points mark (regular season plus playoffs) in March 2025. He told Spectrum SportsNet in the on-court interview, “It’s a hell of a lot of points, and I’m super blessed to be able to put that many points up in the best league in the world with the best players in the world over my career. It’s pretty special.”Every accolade and achievement makes sense when the King continues to show why he is the 21-time All-Star. For Lakers fans, each match brings another thrill while witnessing LeBron James rewrite the very definition of basketball greatness. Also read: How one jump turned Michael Jordan into a cultural phenomenon and built a billion-dollar legacy

Donald Trump (File photo)

US President Donald Trump, once again boasted about collections from tariffs he has imposed since last year on various countries after his return to White House.“We have taken in, and will soon be receiving, more than 600 Billion Dollars in Tariffs,” he said in a post on Truth Social, while taking a jab at media whom he called “fake” for not covering it. “The Fake News Media refuses to talk about it because they hate and disrespect our Country, and want to interfere with the upcoming Tariff decision, one of the most important ever, of the United States Supreme Court,” he added.

Further voicing his support behind tariffs, he added, “Because of Tariffs, our Country is financially, AND FROM A NATIONAL SECURITY STANDPOINT, FAR STRONGER AND MORE RESPECTED THAN EVER BEFORE. GOD BLESS AMERICA!”

Trump has criticised the ongoing proceedings in the past as well multiple times. “The biggest threat in history to United States National Security would be a negative decision on Tariffs by the US Supreme Court,” cautioning that such a ruling would leave the country “financially defenseless,” he had said in the past. Trump’s tariffs have been challenged the US Supreme Court on the grounds whether the president overstepped his authority, with last hearing in November, but the final decision pushed to 2026, without much clarity on specific timing.Tariffs on IndiaIndia also faces high tariffs from US, with Donald Trump citing India’s trade with Russia for oil. Even, just a day before this tariff collection mention, Trump warned India of higher tariffs if it doesn’t cooperate on the issue of Russian crude oil imports. Currently, Indian shipments face a 50 per cent tariff, half of which is linked to India’s continued imports of Russian crude oil.Also read: Will stopping Russian oil imports ease US pressure on India? Time for a clear call“They wanted to make me happy, basically. Modi is a very good man; he is a good guy. He knew I was not happy, and it was important to make me happy. They do trade and we can raise tariffs on them very quickly. It would be very bad for them,” he said. Trump made the remarks on Sunday while speaking to reporters aboard Air Force One during his flight from Florida to Washington, DC.

Mallikarjun Kharge (File photo)

NEW DELHI: Congress president Mallikarjun Kharge on Monday likened US President Donald Trump to dictators Adolf Hitler and Benito Mussolini over the United States’ actions in Venezuela. He also criticised Prime Minister Narendra Modi for allegedly yielding to Trump’s demand to cut India’s purchase of oil from Russia, which has been at war with Ukraine since February 2022.“What is happening in Venezuela today is not good for the world. Trump is trying to frighten people across the globe,” Kharge told reporters in Delhi, referring to the US military action in Venezuela that led to the ouster of Maduro. The Venezuelan leader and his wife were then takento New York to face multiple charges, primarily related to narco-terrorism.

Alleging that the US president was indulging in “expansionism,” the Congress chief said that leaders who attempt to expand their territories, like Hitler and Mussolini, “do not remain in power for long.”Kharge further referred to Trump’s repeated claim about ending the May 2025 India-Pakistan conflict, saying that he has repeated his claim around 70 times.“What does it mean? That he (Trump) is a tall personality and he can make the world bow to him. But the world won’t bow before him. We live in a democracy, only through a democratic method we have to go ahead…Nehru ji‘s policy was ‘live and let live’. That is our policy,” he added.Reacting to Trump’s recent statement that Prime Minister Narendra Modi knows he (Trump) is unhappy with India’s continued purchase of Russian oil, Kharge invoked a dialogue from the 1989 Hindi film “Mr. India.”“It shows that PM Modi is under Trump’s control. I am reminded of a dialogue from Mr. India — ‘Mogambo khush hua’ (Mogambo is happy). If people with such a mindset try to scare the world, India is not going to cower. But I do not understand why Modi ji is bending before him. This is harmful for the nation. Stand for the country. You nod to whatever he says. The country did not elect you just to nod,” the veteran politician remarked.The US has imposed 50% tariffs on India, with the second 25% tranche linked to New Delhi’s purchase of Russian oil. Washington has accused India of “funding Putin’s war machine” in Ukraine.The Republican leader has also repeatedly claimed that he used trade leverage to push India and Pakistan into a ceasefire agreement. However, New Delhi has consistently maintained that the ceasefire talks were a bilateral matter and were held following a request from Islamabad.

NEW DELHI: Rupee continued to slide against the US dollar on Monday. It ended 8 paise lower at 90.28 (provisional) against the US dollar, pressured by firm American currency and weak equity market sentiment.Renewed geopolitical tensions triggered by the US military action in Venezuela strengthened the dollar across global markets, forex dealers said, overshadowing the supportive impact of lower crude oil prices on the rupee at weaker levels, reported PTI. The domestic currency opened at 90.21 in the interbank market, slid to a session low of 90.50 amid sustained dollar buying, and later recovered partially to close at 90.28 (provisional). The session marked the rupee’s losing streak for a fourth consecutive day, taking its cumulative fall to 53 paise since December 30, 2025, when it had settled at 89.75 against the US dollar.The rupee weakened as escalating geopolitical tensions between the US and Venezuela triggered risk aversion in currency markets, according to Anuj Choudhary, Research Analyst – Commodities Research at Mirae Asset Sharekhan, as quoted by PTI. Although the rupee found some support from softer crude oil prices and foreign fund inflows seen at the end of last week, Choudhary added that easing oil prices could help limit downside pressure at lower levels, while any intervention by the Reserve Bank of India may also lend support. He further said that market participants are likely to track the US ISM manufacturing PMI for further cues, with the USD-INR spot pair expected to move within the 90–90.60 range. Reflecting the risk-off sentiment, the dollar index, measuring the currency against a basket of six major currencies, was up 0.24 per cent at 98.39. Meanwhile, Brent crude futures slipped 0.36 per cent to $60.53 per barrel. Domestic equities also remained under pressure, with the benchmark Sensex falling 322.39 points, or 0.38 per cent, to close at 85,439.62, while the Nifty declined 78.25 points, or 0.30 per cent, to end at 26,250.30. Foreign institutional investors, however, provided some relief, turning net buyers with equity purchases worth Rs 289.80 crore on Friday, according to exchange data. Additionally, Reserve Bank of India data released on Friday showed India’s foreign exchange reserves rose by$3.293 billion to $696.61 billion in the week that ended December 26, following an increase of $4.368 billion in the previous reporting period.