Top News

After changing jobs, sudden job loss or taking voluntary retirement (VRS), salaried employees are worried about their Employees Provident Fund i.e. EPF Many questions arise regarding the account. The biggest confusion remains that when the company stops deducting PF, does interest on the money deposited in the account continue or does it stop?

Employees' Provident Fund Organization (EPFO)EPFOAccording to the rules of PF, interest continues to be credited to your PF account even after leaving the job, but it has some very important rules, time limits and tax conditions. Here is our solution to clear all your doubts to PF interest, withdrawal and transfer. Accurate answers to 13 most important questions: :

answer: Even after leaving the job, interest continues to be earned on the amount deposited in your EPF account every year till your age. 58 years Is not completed. Under the amended rules of EPFO, there is no loss of interest even after stopping active contributions.

answer: If an employee has taken retirement from service after the age of 55 years and has continuously 36 months (3 years) No withdrawal has been made from that account till 2015, or the employee has completed 58 years of age, then the account is considered 'inoperative'. After this, interest on it stops. The account does not become inoperative if you leave a normal job before 58 years of age.

answer: Yes, this is the most important point. The interest earned on the deposited capital remains tax-free till the date you leave the job. But the new interest added to the account during the period after leaving the job will be treated as your income from other sources and taxable under your normal income tax slab.

answer: experts always PF Transfer Recommend to do. As soon as you join a new job, enter your Universal Account Number (uanMerge old PF into new account online through . With this, your service continuity is maintained and you get the full benefit of compound interest.

answer: If your total service period (including all previous companies) less than 5 years and you withdraw more than ₹50,000:

• If PAN card is linked, then 10% TDS Will be cut.

• If PAN card is not linked, the maximum rate i.e. More than 30% TDS Can be cut.

• If total service is 5 years or more, the entire withdrawal is 100% tax-free.

answer: If your total annual income is less than the basic tax exemption limit, you can while filling the claim form. Form 15G (Form 15H for senior citizens) can be uploaded. No TDS will be deducted from your account.

answer: to quit job 2 months (60 days) If you remain unemployed and do not join a new job in any other EPFO-covered institution, you can withdraw 100% of the PF amount by filling 'Form 19'.

answer: Yes, as per EPFO ​​rules, if you remain unemployed for 1 month (30 days), you can withdraw your total deposited amount. up to 75% You can withdraw a portion and leave the remaining 25% to keep the account active. Full 100% withdrawal is possible after 2 months.

answer:

• Less than 10 years service: If your total employment is less than 10 years, then you can withdraw the pension money in lump sum (Full & Final Withdrawal) by filling 'Form 10C'.

• 10 years or more service: If you have completed 10 years of service, you cannot withdraw the pension money in lump sum; In return, you will get lifelong monthly pension (Scheme Certificate) on completion of 58 years of age.

answer: Calculation of interest on PF Monthly Running Balance But it is credited simultaneously to the account at the end of the financial year (after 31st March).

answer: Now you do not need to go to the old company. Go to EPFO's Member Service Portal (Unified Portal) and go to 'Manage' tab. 'Mark Exit' By choosing the option, you can enter the date of exit yourself through Aadhaar OTP.

answer: If a person is going to settle abroad permanently, he can claim the final settlement of his entire PF and pension fund immediately without a waiting period of 2 months.

answer: On PF deposits for the current financial year by EPFO 8.25% per annum An attractive and guaranteed interest rate of Rs. 500 crore is being offered, which is much higher than any other bank FD or government debt instrument.

Therefore, if you are not in urgent need of money, then instead of withdrawing the PF money on changing jobs, transferring it and taking advantage of the compound interest of 8.25% for a long time is the most sensible financial decision.