1. Vide Gazette Notification GSR 1065(E) dated 11th Nov'16, EPFO has allowed inoperative accounts to receive regular interest till the employee attains the age of 58 years.
2. The relevant Para 72, Sub-para 6 of EPF Scheme,1952 was amended, and named as EPF (Sixth Amendment) Scheme, 2016.
3. Herein, changes have been made in conditions leading to a PF account becoming an inoperative account.
4. After its implementation, an EPF account becomes inoperative if no claim has been preferred by the member after 36 months from the date of attaining the age of 55 years/actual date of retirement, whichever is later.
5. The implication of the last phrase, "whichever is later", is significant because it effectively makes interest payable upto 58 years, as the account remains operative, if not already closed upon earlier retirement.
6. For the same reason, even FAQs Page of EPFO website has replied to a specific query as follows:-
Q. Will my inoperative account earn interest?
A. : No. However, at present, all accounts will earn interest upto 58 years age of a member.
7. Accumulated Provident Fund will always remain tax-exempt.
8. Accumulated interest will be tax-exempt only till end of actual employment (or 58 years age max.) after a continuous service for 5 years or more.
9. Interest accumulated thereafter is taxable in the year(s) withdrawn under the head "Income from other sources".
2. The relevant Para 72, Sub-para 6 of EPF Scheme,1952 was amended, and named as EPF (Sixth Amendment) Scheme, 2016.
3. Herein, changes have been made in conditions leading to a PF account becoming an inoperative account.
4. After its implementation, an EPF account becomes inoperative if no claim has been preferred by the member after 36 months from the date of attaining the age of 55 years/actual date of retirement, whichever is later.
5. The implication of the last phrase, "whichever is later", is significant because it effectively makes interest payable upto 58 years, as the account remains operative, if not already closed upon earlier retirement.
6. For the same reason, even FAQs Page of EPFO website has replied to a specific query as follows:-
Q. Will my inoperative account earn interest?
A. : No. However, at present, all accounts will earn interest upto 58 years age of a member.
7. Accumulated Provident Fund will always remain tax-exempt.
8. Accumulated interest will be tax-exempt only till end of actual employment (or 58 years age max.) after a continuous service for 5 years or more.
9. Interest accumulated thereafter is taxable in the year(s) withdrawn under the head "Income from other sources".