PF account turns inactive and doesn’t earn curiosity after worker retires
I’ve not too long ago retired, after which the provident fund contributions have been stopped. I’ve a PF accumulation of ₹50 lakh.
Can I proceed to maintain the above-accumulated quantity in my PF account with out withdrawing, as PF will earn a risk-free curiosity of round 8.5%? Further, whether or not such curiosity on PF after retirement might be taxable, at any time when I resolve to withdraw it?
– Murali Manohar
It is assumed right here that you’ve got retired on the superannuation age of 58 years. Under the PF guidelines, an account turns into inactive and doesn’t earn additional curiosity the place an worker retires from service after attaining the age of 55 years. Once termed inoperative, the account stops accruing any curiosity.
So, it’s advisable that you simply withdraw the amassed PF quantity on the earliest as per the prescribed time restrict post-retirement.
– Answered by Arvind Rao, founder, Arvind Rao & Associates
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