As I understand, if a person stops working, he/she has an option to withdraw the balance amount from EPF account after 60 days of last working day. However, I am trying to understand more regarding the rules surrounding the withdrawal. Thanks in advance.
1. However, if the person doesn't wish to withdraw the money and let it grow for the retirement, can he/she do that? Will the government continue paying the interest on the account?
2. Can the person withdraw only half the money and keep the rest in the account for retirement?
3. Lets say, the government doesn't pay the interest, but will the amount be safe with the government for a long time? If the person doesn't withdraw for sometime, will the money be forfeited to the government after certain number of years?
4. The amount that is withdrawn - is it taxable?
5. If a person starts working in a different country and becomes an NRI, how does that affect the withdrawal rules?
From India, Kannur
11. However, if the person doesn't wish to withdraw the money and let it grow for the retirement, can he/she do that? Will the government continue paying the interest on the account?
2. Can the person withdraw only half the money and keep the rest in the account for retirement?
3. Lets say, the government doesn't pay the interest, but will the amount be safe with the government for a long time? If the person doesn't withdraw for sometime, will the money be forfeited to the government after certain number of years?
4. The amount that is withdrawn - is it taxable?
5. If a person starts working in a different country and becomes an NRI, how does that affect the withdrawal rules?
From India, Kannur
Dear Krishna.Shastry,
I shall answer your queries as under.
1. Member will get interest till 3 year completion from the date of relieving.
2. When the member is service, he can withdraw PF amount for various reasons. After service partial withdrawal is not possible.
3. At present members' amount is safe with PF and there will not be any forfeiture. But in future these unclaimed amounts may be diverted to various purposes.
4. If the service is below 5 years and accumulated amount is more than Rs.30,000, it is taxable.
5. I have no experience/knowledge in this regard.
Abbas.P.S
From India, Bangalore
I shall answer your queries as under.
1. Member will get interest till 3 year completion from the date of relieving.
2. When the member is service, he can withdraw PF amount for various reasons. After service partial withdrawal is not possible.
3. At present members' amount is safe with PF and there will not be any forfeiture. But in future these unclaimed amounts may be diverted to various purposes.
4. If the service is below 5 years and accumulated amount is more than Rs.30,000, it is taxable.
5. I have no experience/knowledge in this regard.
Abbas.P.S
From India, Bangalore
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PF Withdrawal New Rules.pdf
PF WITHDRAWAL RULES.zip