I retired at age of 64 years in March 2019. I stored my staff’ provident fund (EPF) account operational with none additions. The three-year interval allowed to maintain the account open with out additions ends on 18 March 2022.
I’ve the next queries:
1) Can I prolong my EPF account past three years with none additions to the account?
2) I would like to shut the account on 18 March 2022. In this case, how will the curiosity for the 2021-22 interval get credited to my account, as the speed of curiosity is usually determined in April, and my account would shut a month earlier than that?
3) When do I submit an internet software for account closure — on 18 March 2022 or earlier than that date?
– Anonymous
As per the present provisions beneath the Indian Provident Fund (PF) legislation, an EPF account turns into ‘inoperative account’ and doesn’t earn additional curiosity, as soon as an worker retires from service after attaining the age of 55 years, migrates overseas completely or dies and doesn’t apply for withdrawal of his collected steadiness inside 36 months.
Until then, curiosity will proceed to accrue on the PF balances, nevertheless, no curiosity will accrue as soon as the account turns into inoperative.
In your case, as you will have retired after finishing 55 years of age, you shall obtain curiosity as much as 36 months from the date of your retirement. It could also be famous that submit completion of the above referred 36 months, it isn’t necessary to shut your PF account. You can preserve the account open.
You might select to make an software for withdrawal of the PF steadiness in your account at your comfort even after 18 March 2022.
Further, simply to make clear, in case you select to use for the PF withdrawal in March 2022 and the PF authorities haven’t introduced the rate of interest for FY 2021-22, you shall obtain the curiosity as much as the date of withdrawal, as per the final introduced PF rate of interest.
(Parizad Sirwalla is companion and head, world mobility companies, tax, KPMG in India.)
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