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PF Money News: Not Linked Your Multiple PF Accounts To UAN Yet? Here’s What Happens

EPF withdrawal in India: So, if you want to avail full benefits, you must transfer your EPF account to the next organisation immediately after changing the job. If you are taking early retirement before the age of 58 years, you must withdraw the PF amount within 36 months of retiring.

Employees’ Provident Fund (EPF) or popularly known as PF is an essential fund which provides financial solidity and assurance post retirement. However, there are a few rules that you should remember to avail the optimum benefits from your EPF account. So, you need to be careful while leaving the job and if you are retiring before 58 years. Often it has been witnessed that, employees forget to transfer their EPF account after switching jobs. Several employees also feel that the EPF balance will get tax-free interest while leaving the job before the age of 58.

First of all, salaried class must remember a few things so that their EPF accounts remain operative. Employees’ Provident Fund Organisation (EPFO), the nodal body for EPF account, has laid down a few situations in which a PF account can become inoperative. These are

  • If a salaried employee retires from service after 55 years and he or she does not withdraw the money from the account three years after the retirement.
  • If the EPF account holder migrates abroad permanently.
  • If the EPF account holder passes away.
  • If an EPF account holder does not make any claim for settlement of the account or does not apply for withdrawal within 36 months of quitting the job.

Will Your EPF account earn interest even after leaving job?

Employees often have a question “Will my EPF account earn interest after leaving job?” According to the existing rules, your EPF account is eligible to receive interest even after leaving the employment. In case, there is no fresh contribution, the rule remains the same. However, the benefit only can be availed till the age of 58 years.

It must be noted that accumulated balance up to the age of 58 years or end of employment is not taxed. However, if your EPF account receives any interest aftermath of resigning or end of employment or retirement, then that interest amount during that period becomes taxable.

According to the Income Tax rules, interest on your EPF account becomes taxable if you withdraw any amount before completion of five years “continuous service”. If an employee works at multiple organisations in the initial five years, then service rendered to those organisations will be considered as ‘continuous’ if you transfer the EPF account to the next organisation.

Three Things You Should Remember

  • If you want to avail full benefits, you must transfer your EPF account to the next organisation immediately after changing the job.
  • If you have multiple PF accounts then you must ensure that those accounts are linked to a single UAN number.
  • If you are taking early retirement before the age of 58 years, you must withdraw the PF amount within 36 months of retiring.

 

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 @ praveshmaurya24@gmail.com
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