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Good News: Retirement fund will be tax free, pension will also benefit- Know the benefits related to your EPF money

Retirement Pension Rules: There is no better investment option for retirement than Provident Fund. This is because, those investing in EPF get a lot of benefits.

Retirement pension rules: There is no better investment option for retirement than Provident Fund. This is because, those investing in EPF get a lot of benefits. The first advantage is that there is tax exemption under section 80C in income tax on investments up to Rs 1.5 lakh. Also the interest rate is also very good.




At present, 8.50 percent interest has been received on the investment of EPF. There is also the advantage of compounding on interest. Simply put, the more the investment, the thicker the interest will be. But, people often withdraw PF money when they change jobs or break the investment when needed. The benefits of doing so are diminished.

Retirement fund will be tax free

Good News: Retirement fund will be tax free, pension will also benefit- Know the benefits related to your EPF money

According to a rule of EPFO, if you never withdraw PF money during the job, then you will get many benefits at the time of retirement. First, a good amount will be deposited for retirement. You will get the benefit of continuous compounding interest. At the same time, the fund received after retirement will be completely tax free. But, it is to be kept in mind that no withdrawal has been done before retirement.

Pension benefits too

Good News: Retirement fund will be tax free, pension will also benefit- Know the benefits related to your EPF money

If no withdrawal has been made from the PF account before retirement, then you will also get the benefit of pension (EPS-Pension). Under the EPS (Employee Pension Scheme) of EPFO, you will get some rupees every month as pension. Actually, according to the rules, if the EPF account runs for 10 years without any withdrawal, then the pension of that member starts. Let us tell you, some part of the amount deposited by the employer in EPF also goes to the pension fund. Pension starts from this pension fund after 58 years.

Keep in mind while withdrawing EPF after retirement

Good News: Retirement fund will be tax free, pension will also benefit- Know the benefits related to your EPF money

If you are about to retire or have retired and have not withdrawn the PF money yet, then you may also suffer loss. According to the rules of EPFO, after retirement, if there is a delay in withdrawing money from the EPF account, then tax will have to be paid on the interest earned on your amount. This is because, the facility of tax exemption on the interest of EPF is only for the employees and after retirement the person is not considered as an employee.




Keep in mind if you want to withdraw EPF money during the job itself

Good News: Retirement fund will be tax free, pension will also benefit- Know the benefits related to your EPF money

If for some reason you need money during the job itself and you want to withdraw PF money, then keep in mind that for this your job should be at least 5 years. Actually, if money is withdrawn from the PF account before 5 years of service, then tax will have to be paid on it. But, if you withdraw money from the fund after having a job of 5 years, then you will get tax free money.




Till when will the benefit of interest be available

Good News: Retirement fund will be tax free, pension will also benefit- Know the benefits related to your EPF money

EPF accounts are kept in two categories. There is an active account, in which investments are made regularly. At the same time, there is another dormant account, in which no new investment has been made for 3 years. Active accounts get interest (EPF interest rate) every year continuously. At the same time, interest is also available on inactive accounts (EPF interest news) from 2016 onwards. Earlier in 2011, interest was stopped on dormant accounts. But, in 2016 this was started again. If the account is inactive and the account holder has attained 58 years of age, the interest will stop. But, till 58 years, he will get the benefit of interest. EPFO will not pay interest if the account holder is retired and the account has become inactive.

Parvesh Maurya
Parvesh Maurya
Parvesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @ informalnewz@gmail.com
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