What happens to my PF account after leaving job?
And if you have quit to start your own business, the entire balance in your EPF account can be transferred to the National Pension Scheme. So, to avoid the interest getting taxed, you will have to either transfer the PF balance to your new employer or withdraw the amount at the earliest after the exit.
Can I withdraw my PF after 7 years?
Money from your EPF can be withdrawn for an occasion like marriage in case you have already completed seven years of your service life. You can use up to 50 \% of the amount that is there in your EPF account and you can enjoy this advantage for a maximum of three times.
How is PF amount recovered from the employer?
Normally whole share of Employee and Employer PF (EPF, EPS and Difference) is deposited with PF Department in Employee A/c. Whole amount is recovered on retirement of Employee or as pension. To cover salary and office expenses of PF Department, PF Admin Charges are also recovered from the employer. It is 0.5\%*EPF WAGES.
What happens to your PF account when you leave a company?
Therefore, even after leaving one company, the PF account continues to earn interest and is not termed inoperative PF account till such a situation rises till age 55. However, during the period when contributions don’t get credited to the PF account, the interest rate earned does not remain tax-free.
What happens when a PF account becomes inoperative?
A PF account becomes inoperative if the employee does not make an application for withdrawal within 36 months of retiring after attaining the age of 55 years. According to the rules, the unclaimed amount of the account which remains inoperative for 7 years is to be transferred to the Senior Citizens’ Welfare Fund.
Where is the PF amount deposited in employee a/C?
View Answer. Normally whole share of Employee and Employer PF (EPF, EPS and Difference) is deposited with PF Department in Employee A/c. Whole amount is recovered on retirement of Employee or as pension. To cover salary and office expenses of PF Department, PF Admin Charges are also recovered from the employer.