EPF latest news- If you do not withdraw your money within 36 months if you resign from the job before the age of 58, then the account becomes inoperative.
EPF News: Many people leave jobs before retirement age. Many such people want to know what happens to the amount deposited in their EPF (Employee Provident Fund) account. Does it continue to get tax-free interest? It is necessary to state here that even after the age of your retirement, interest continues to be received on the EPF account. Then whether or not there is a new contribution in it.
It is true that till retirement or completion of job, there is no tax on the amount collected in EPF. However, the interest earned on the amount deposited in the PF after resignation, retirement or completion of the job comes under the purview of tax. If you do not withdraw your money within 36 months in case of resignation from the job before the age of 58, then your Employee Provident Fund account becomes inactive (Inactive EPF Account). Once the EPF account is deactivated or inoperative, it does not get interest.
The account becomes inoperative in these four situations (When an EPF account becomes inoperative)
– If the employee retires after the age of 55 years.
– If the subscriber goes abroad.
– If the EPF member dies.
– If, after resigning from the job, he does not make the settlement within 36 months from the date he is eligible to withdraw money from the PF.
What is income tax rules regarding EPF
EPF News: According to income tax rules, tax is levied on the interest of EPF balance if the money is withdrawn before completion of 5 years of continuous service. In the case where the employee works in more than one institution in the first 5 years of EPF subscription, the service is considered regular. If it transfers the EPF balance of the previous institution to the existing institution. In this situation, the employee is believed to have served 5 years or more continuously for tax purposes.
