No prescribed interval to shut EPF account
I labored in a company for 15 years and needed to depart the job for private causes in May 2018. I’ve not withdrawn my workers’ provident fund (EPF) but. For what number of years can I maintain the cash in that account after leaving the job? Does the account get locked whether it is non-operational for a interval? Is there an choice to make a partial withdrawal? If sure, what’s the process? For what number of years after an worker leaves a job is curiosity paid on the quantity accrued within the EPF account?
—Deepali Srivastava
There isn’t any prescribed interval inside which you might be mandatorily required to shut your EPF account. You can select to maintain the account open as per your requirement.
There isn’t any idea of EPF account being locked below current provisions of Indian Provident Fund (PF) regulation. But these accounts grow to be inoperative and don’t earn additional curiosity the place 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 amassed steadiness inside 36 months. Until such time, curiosity will proceed to accrue on EPF balances. But no curiosity will accrue as soon as the account turns into inoperative.
Assuming that you haven’t attained 55 years of service and haven’t migrated overseas, you shall earn curiosity till you attain the age of 58, submit which the account shall grow to be inoperative.
In relation to withdrawal, within the abnormal course, you may solely withdraw your complete EPF steadiness and never partial steadiness.
However, there are prescribed functions within the provident fund scheme for which a person is allowed to withdraw EPF steadiness in accordance with the circumstances prescribed on this regard.
Can one contribute to the general public provident fund (PPF) accounts of two minors from a Hindu Undivided Family (HUF) account? On contributions of as much as ₹1.5 lakh per yr, is the profit below Section 80 C relevant whereas submitting earnings tax return of HUF?
—Name withheld on request
There aren’t any restrictions on who can contribute to a PPF account.
From a tax deduction perspective, as per the provisions of Section 80C of the Income Tax Act, 1961, an HUF can declare deduction in direction of contribution to a PPF account, standing within the title of any “member” thereof.
The most deduction below Section 80C of the I-T Act is restricted to ₹1.5 lakh.
The I-T Act, nonetheless, doesn’t outline the time period “member” of an HUF.
Hence, this may be guided by the overall rules of the Hindu Law, with respect to inclusion of minors as “members” of the HUF.
Parizad Sirwalla is associate and head, world mobility providers, tax, KPMG in India.
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