PF not withdawn, after Resignation
K V Subba Rao
(Querist) 15 March 2011
This query is : Resolved
An employee, after rendering five years of continuous service, resigns from service and starts undertaking software work on contract basis. He proposes NOT to withdraw accumulated balance in Recognised Provident Fund account because Interest is allowed at a fairly good rate of 9.5 % and it is believed that interest earned is tax free
Please advise--
(1)whether there are any restrictions in continuing the accumulated balance with the RPF Commissioner
(2) whether interest is credited on accumulated balance continuing with the RPF Commissioner
(3) whether any Form is required to be submitted to the RPF Commissioner for crediting interest
(4) whether interest earned on accumulated balance is taxable
Kirti Kar Tripathi
(Expert) 15 March 2011
i. At present there is no restriction but there is a proposal not to pay interest after three years.
2. Yes.
3. No.
4. No.
K V Subba Rao
(Querist) 16 March 2011
I have since traced the amended rule position in the following Link--
http://labour.nic.in/ss/Notificaiton/InterestInoperativeAccounts.pdf
It is true that interest will not be credited from 36 months after an account has become in-operative
