Kindly clarify on below points:
PF Query
Facts:
- A person at the age of 48 resigned from the regular private company employment
- After this he has not joined any other organisation
- There is no further PF contribution after his resignation from regular employment
Queries:
- Till when, he will continue to receive interest on his PF balance?
- Is the PF interest received after the resignation, tax free or not?
- Also suggest any restrictions on this interest?
- How long the PF account will remain active if there is no PF contribution after the resignation at the age of 48?
- What is the recommended action for this person regarding this PF account, means to hold or withdraw from this account?
- Also suggest implication on EPS balance?
Please let me know if you need any specific info for answering this query.
Also pls share specific circular or sections from the act to support your view.
PF Query
Facts:
- A person at the age of 48 resigned from the regular private company employment
- After this he has not joined any other organisation
- There is no further PF contribution after his resignation from regular employment
Queries:
- Till when, he will continue to receive interest on his PF balance?
- Is the PF interest received after the resignation, tax free or not?
- Also suggest any restrictions on this interest?
- How long the PF account will remain active if there is no PF contribution after the resignation at the age of 48?
- What is the recommended action for this person regarding this PF account, means to hold or withdraw from this account?
- Also suggest implication on EPS balance?
Please let me know if you need any specific info for answering this query.
Also pls share specific circular or sections from the act to support your view.
The employee who has left an establishment will continue to be a member of the PF until he has fully withdrawn the PF accumulations. A such, he will receive interest on the accumulations till he withdraws the amount. The PF account will not become dormant as such because every year the PF account is credited with an interest.
Recommended:
So long as fund is not required, it is safer to keep the amount in the PF itself because no Bank can give you an interest higher than the one offered by EPFO.
If the employee has had 10 years' membership in Pension Scheme, he would get monthly Pension when he attains 58 years of age. Early pension is available from 50 years of age but it is recommended to take full pension on attaining 58 years of age. Since the pension fund cannot be withdrawn for an employee who has 10 years service, there is no other option but to apply for pension when he becomes 58.
From India, Kannur
4239Recommended:
So long as fund is not required, it is safer to keep the amount in the PF itself because no Bank can give you an interest higher than the one offered by EPFO.
If the employee has had 10 years' membership in Pension Scheme, he would get monthly Pension when he attains 58 years of age. Early pension is available from 50 years of age but it is recommended to take full pension on attaining 58 years of age. Since the pension fund cannot be withdrawn for an employee who has 10 years service, there is no other option but to apply for pension when he becomes 58.
From India, Kannur
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Circular on PF Damage & Interest Calculations.pd f
Copy of PF Interest calculator.xls