EPFO Suggests Not To Withdraw PF After Changing Job For High Interest

EPFO Suggests Not To Withdraw PF After Changing Job For High Interest

To get the most benefit out of EPFO services, a person should never withdraw his or her full amount. Doing so can be a deal of high loss as you will be excluded from getting higher returns on your savings. It’s obvious that the continuity of your pension will be over, but despite this, you should focus on merging your PF balance with the account created by the new company. Even a person can leave his savings in a PF account for several years after his or her retirement.

Status Of EPFO Account After Leaving A Job

Status Of EPFO Account After Leaving A Job

As the experts suggest, a person should not withdraw his complete earnings from his PF if he resigned or has got fired from the job. If you do not require funds immediately then don’t withdraw them. Because you will continue to get the interest amount on your PF balance and can be transferred to the next company as soon as the account is activated.

EPFO- Three Years Of Service From Company

A person will continue to earn the interest on his PF balance even after 36 months or 3 years of leaving the job. However, if there is not even a single contribution made towards your PF account then after 36 months your account will be moved to the category of inoperative account. So, to prevent this situation you can withdraw a few bucks from your PF account before the completion of three years.

Also read:

ITR Filing Is Necessary Under These Ten Situations

Taxable Interest Amount of PF

As per the rules, your PF account is not declared inactive even if no contributions are being made, but the interest earned during this period is taxable. And remember that if any claim is not made by you after the account is declared inactive then your complete amount will be transferred to the Senior Citizens Welfare Fund (SCWF).

Rishabh Sharma

Rishabh is an experienced content writer and editor, he is working for Viralbake to cover a diversified range of categories. His articles mainly focus on providing information, being a travel guide, educating others, and also making people aware of technology, after all, he is a technophile. When not writing he can be found gaming, watching movies, and travelling.

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