Q. Dear Sir, I am working in a local private sector company, and I am due to retire in next one year. I have accumulated good amount around Rs. 50 lakhs in my EPF account. Can I continue the same amount even after my retirement? Also, can I continue to contribute to my provident fund account after my retirement? Please advise.
-Mahesh Vajpayee, Lucknow
A. Dear Mr Vajpayee, We congratulate you for accumulating sizeable amount in your provident fund account. However, please note that after you retire from your company, you cannot contribute any amount in your PF account. As soon as the employer stops contributing to your provident fund account you cannot make any contribution from your side. Also, please note that you can keep that account alive for three more years from the date of your retirement and you will continue to earn interest every year as announced by the EPFO. But please note that the interest income earned by your after your date of retirement will be fully taxable. You will have to include that interest income in your income tax return under the head ‘Income from other sources’ and pay income tax on the same.
Also please note that if you do not withdraw your PF accumulation balance even after three years from the date of your retirement, your account will become dormant, and it will stop earning any interest. So, please ensure that you withdraw your amount as soon as the period of three years is completed from the date of your retirement.
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