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.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
ASK THE EXPERT
Ques. One of my friends told me that your company provides detailed Retirement plans. I want to know what is the procedure to get my Retirement plan. I will be retiring in March 2025. R.P Gupta, Noida
How to Naturally Reverse Fatty Liver Disease
The liver, located on the upper-right side of the abdomen, is the body’s largest internal organ and plays a critical role in detoxifying the blood and processing nutrients.
Banking sector which has underperformed in the last two years, now offers a favorable risk-reward profile
Do you think the market is overpriced? Is yes, should investors refrain from investing in index schemes at the current valuation?
India will continue to enjoy benefits of a close US relationship and trade will continue to grow
Q1. The US elections are said to be one of the closest till date, what impact will the election of a Republican / Democratic party have on the US economy and how is that going to affect India in the short as well as the long term?
Understanding Momentum Funds
Momentum funds are a type of investment fund that focuses on companies experiencing positive momentum in factors such as earnings, revenue, and stock price movement.
Risks and opportunities associated with Small Caps
Small-caps are a stock-picker’s paradise.
How to navigate your portfolio through bull market a
Indian equities have been in a bull run for the past four years.
Choosing mutual fund schemes depending on your age to achieve life goals
The choice of mutual fund (MF) scheme might be influenced by one’s risk profile or age.
Thematic Fund Or Sectoral Fund, Which Fund Suits You?
A thematic fund is a type of mutual fund that focuses on investing in companies based on specific themes or trends.
Be Kind To Your Kidneys
The kidney is a vital organ in our body which is four inches long and two and a half inches in width.
