EPFO If you are a PF holder and leave the job or retire due to any reason, then withdraw money from the PF account. If you do not withdraw the money in time, then there can be a huge loss. Know how…
Jamshedpur: Even after leaving the job, if you have not transferred your EPFO amount to your PF account, then your amount may also disappear. If you have left the job or have retired, then withdraw the amount lying in your EPF account by the stipulated time limit, otherwise there will be loss of interest. Even if you are changing jobs, you have to take care of some things.
You should know how long will the interest on the money deposited in EPFO (PF) be available. Along with this, there is also a question whether the interest received after leaving the job will remain tax free. In this news today you will get the answer of all the questions. Actually, after leaving the job, people often forget to transfer their EPF. If you are doing the same thing then you are going to make a big mistake. There is no interest in the account after three years of leaving the job.
Don’t make this mistake
Most of the people who leave the job understand that even if they are not investing in their PF account, their deposits are increasing due to interest. We are going to tell you that if no contribution or amount is deposited for the first 36 months, the PF account of the employee is put in the category of dormant account. In such a situation, you must withdraw some amount before three to keep your account active.
If you do not withdraw the amount in 36 months then the account will become inactive
Under the current rules in the country, if the employee retires at the age of 55 and does not apply for withdrawal of the deposit within 36 months, then the PF account will be inactive. In simple words, even after leaving the company, interest will continue to accrue on the PF account and will not be dormant till the age of 55 years.
Interest is taxed
According to the rules made by the government, the PF account does not become inactive if the amount is not deposited in the account, but the interest earned during this period is taxed. If the PF account is not claimed even after becoming inactive, then the amount goes to the Senior Citizens Welfare Fund. However, the unclaimed amount is transferred to this fund after the account has remained dormant for seven years.
It should be known that the trusts which are exempted through section 17 of the EPF and MP Act, 1952 also come under the purview of the rules of Senior Citizens Welfare Fund. They also have to transfer the account money to the welfare fund.
There is a provision to claim the amount
The unclaimed amount transferred to the PF account remains lying in the Senior Citizens Welfare Fund for 25 years. During this time the PF account holder can claim the amount. There is no special benefit of leaving your PF amount with the old company. Because the interest earned during the period of non-working is taxable.
Do not let the account become inactive if you retire in 55 years
Don’t let the account become inactive if you retire at 55. Withdraw the final balance immediately. PF account will not become inactive till the age of 55 years, still it is good to transfer PF balance from old institution to new institution. This will raise a decent amount for retirement.
Even if you are changing jobs and do not link the old EPF account with the new one, even after three years the interest in the old account will stop. In such a situation, give the Universal Account Number in the new office so that this problem does not arise.
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