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Epf withdrawel query

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Abhi

Others

21 Points Posted on 08 December 2014

Hi,
I am employed with my company for 8 years.
Initially we did not have a PF account and In July2011 company started PF account system.
I would be leaving the company in Jan2015 and would be going to USA.
Now as per PF rules if I withdraw my EPF amount before 5 years, it would be taxable.
But if I do not withdraw and leave the account as it is would the time from Jan2015 onwards counted in the total 5 years time period after which the amount becomes non taxable.
What is suggested in this case, to withdraw not itself or to keep the amount untouched for next few years.

Also same is the query related to EPS amount. Should I withdraw it as well?

Replies (1)

Roshan Thomas

C.E.O

306 Points Posted on 24 December 2014

I think you are in luck. I suggest you hold on to your EPF balance for the five years otherwise you will have to pay tax on employers contribution and interest earned on both your contribution till date.

Now the reason i called you lucky is because, as per PF rules they will stop paying interest on inactive account after 36 months. Since you joined PF in 2011, 5 years will come before 36 months expire even if you leave India now. So you will keep on earning interest on your contribution till withdrawal.

However please keep all the particulars of you PF account safe and under the process of withdrawal clearly so that you will not face any hiccups while applying later on.