Did You Know There Are Situations When Your EPF Account Won’t Earn You Interest? Check Details Here

According to the guidelines of the retirement fund body Employees' Provident Fund Organisation, there are particular situations in which the subscriber's EPF account will not accrue any interest.

(Representative Image/ Getty)

New Delhi: Most employees are aware of their contributions towards Employees' Provident Fund (EPF) which are typically meant to take care of one's post-retirement needs. In case of most employees in the private sector, it's the basic salary on which the contribution is calculated. Did you know that once an EPF account becomes inoperative there is no interest credited further from that date? Yes! It’s important to note the situations in which subscriber's EPF account does not credit interest. According to the guidelines of the retirement fund body Employees' Provident Fund Organisation, here are the situations under which the subscriber's EPF account will not yield interest Here are situations in  which the interest will not yield any interest: The subscriber’s EPF account will not yield any interest in case the employee retires from service after 55 years or if the subscriber migrates abroad permanently. It will not get credited in case the subscriber passes away The most important situation when it stops getting credited is if no claim has been received for settlement for 36 months from the date when the amount became payable on cessation of employment. It means if you have failed to apply for withdrawal of the accumulated balance within 36 months from the time of leaving the job. But remember for the duration of 36 months, interest will continue to accrue on the PF balances What are other things to keep in mind? Also, keep in mind that the accumulated EPF balance payable to the employee is exempt from tax if you have offered continuous service for a period of five years or more. Also note, if you have worked at different organizations, and if the EPF balances are transferred to the account it is considered that you have rendered continuous service for a period of five years or more for taxation purpose. In case there has been no new contribution to the EPF account, it will turn inoperative but still continues to earn interest. But in such a case the deposit to your PF balance will be taxable. You may pay it through advance tax or self-assessment tax, whatever is applicable.