Employee’s Provident Fund also said as EPF or PF is a retirement fund. It generally ensures financial stability and security after retirement. You must ensure few guidelines to get the most of your ‘EPF account’. Therefore, it is important to ensure that you have transferred your PF account while quitting or changing your job before the age of 58.
However, employees now and then forget to transfer or link their PF account when they quit or change their job. Also, after retirement, they earn tax-free interest. Additionally, you must know what happens to your PF account after quitting your job and what you should know.
What do you need to keep in mind?
- It is important to transfer your ‘EPF account’ to your new employer in case if you change or quit your job to avail benefits of your EPF.
- Ensure that each EPF account is linked to the same UAN number.
- In case, if you have retired before reaching the age of 58, then you should withdraw your PF corpus on or before the 36 months of retirement.
Know, what happens to EPF account when you quit a job
- Your EPF account remains active and you will be eligible for interest even after you leave or change the job.
- You must know that accumulated balance is not taxable at the age of retirement or the job termination. In other words, the EPF account earns interest even after you leave your job or get retired.
- In case, if you withdraw PF fund before completing five years of “continuous service,” then the interest earned becomes taxable, as per the Income Tax guidelines.
- If you have worked for multiple employers in the first five years, then the service provided to those companies are termed as “continuous” if the EPF account is transferred to the next employer.