Provident fund transfer

Mr. Shyamal,

Would suggest you to keep the balance in your PF acount with the previous employer & get it transferred to the new account once you join an organisation where PF is to be contributed. Even if you dont join organisation having PF facility the amount can be withdrawn at the time of your retirement based on the option you select (Commute or Uncommute). However, the existing PF account will stop providing you interest if it remains inactive for 36 months i.e. if there is no PF instalment for 36 months, interest will not be credited to your account.

PF a/c is your life saving. You can invest if you are to withdraw for any reason in many government investments /bonds /public provident funds  that will earn without taxing on the PF moneys after all you can lock it in long tme relative securities, depending upon finance policies of government of India as announced by Finance minister of government of india, as also state finance ministers. so you need to keep track on finance policies relating to Provident funds if you really care to save your PF moneys which are clearly meant for old age or very bad rainy days! 

One suggested option is to withdraw PF and invest the proceeds in a PPF a/c in which case no interest is taxable, provided withdrawal proceeds from PF are not taxable to you if you fall under the exempted list