Home > Money > Question

Sign In | Create an account

Language:

Now in हिन्दी too

Need Expert Advice?Our Gurus Can Help

Should I Keep My Old PF Account Open?

T S Khurana |384 Answers |Ask -Follow

Tax Expert - Answered on Jan 22, 2025

A certified management accountant since 1993, T S Khurana is a fellow member of The Institute of Cost Accountants of India. His areas of expertise are income tax, specifically litigation cases, and GST.

Since the last 21 years, he has also been providing expert advice on financial matters, including investments and diversification of funds, and wealth building in the long term to his clients.
He believes that investment in real estate is the safest way for better returns and wealth generation over a period of time.

A former chairman of the Chandigarh Chapter of Institute of Cost Accountants of India, T S Khurana has also served as member of its technical committee.... more

Question by Ratna on Dec 04, 2024Hindi

Money

Hi - I worked for a company for about 15+ years and came out in 2017 and started something on my own. My PF account continues to exist with no contributions and interest amount is deposited every year. Questions: 1) Can I continue to keep the account and get the interest deposited till the age of 58. Am currently 50 years old. 2) Is the interest income tax free or taxable? 3) Should I withdraw from the account and invest the funds elsewhere? Please advise. Thank you.

Ans: 01. You may keep your PF Account & earn interest.
02. Interest earned on PF account is tax free, but you have to disclose the same in your ITR.
03. You may withdraw the amount & deposit the same in PPF account, with any bank or Post Office & keep earning interest. This account would be for 15 years & you can get it renewed under certian conditions.
Please note that in case of EPF Interest is not paid after 3 years, if there is no further contribution.
Most welcome for any further clarifications. Thanks

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.

MoneyReply

You may like to see similar questions and answers below

Milind Vadjikar |1083 Answers |Ask -Follow

Insurance, Stocks, MF, PF Expert - Answered on Oct 15, 2024

Question by Anil - Oct 15, 2024Hindi

Money

Hello Sir, Greetings. My name is Anil. I quit my last job in Sept 2021 and did not withdraw my PF amount till today. I will complete my 60 years in the next year. I have a continuous service af more than 22 years all PF account have transferred time to time when I joined the new organization. Please let me know whether I should continue to keep my PF balance in PF account and will I get the interest every year? Also please let me know when should I start with my PF pension? Thanks in advance for your guidance

Ans: Hello;

You should withdraw your EPF corpus immediately and invest elsewhere.

After 3 continuous years of no contribution, except interest, the EPF account becomes inoperative.

If you have opted for deferred pension you may receive EPS pension after completing 60 years of age.

Milind Vadjikar |1083 Answers |Ask -Follow

Insurance, Stocks, MF, PF Expert - Answered on Feb 07, 2025

Asked by Anonymous - Nov 24, 2024Hindi

Sir, i am planning to quit my job from an mnc and have no plans to work in any company.(planning to start business). Currently I have PF balance of 25 lakhs and wanted to know if its beneficial for me to keep my PF balance in the same account for 3 years (until it earns interest) or should i keep it for more than 5 years(to avoid tax)? Please let me know if i can still earn interest even after account becomes inactive/dormant after 3 years? Total service : 15 years Age:40 Is the entire principal and interest tax free if I keep the amount in pf account for more than 5 years post retirement?

Ans: Hello;

As per EPFO rules an account is deemed dormant if it has no contribution (except interest) for 36 months consecutively.

However due to request from members, EPFO has a current policy to pay interest upto member age 55 followed by 3 grace years i.e. upto age 58.

Yes both interest and principal are tax free.

Best wishes;

Milind Vadjikar |1083 Answers |Ask -Follow

Insurance, Stocks, MF, PF Expert - Answered on Feb 27, 2025

Question by Hema - Feb 13, 2025Hindi

Money

Dear Sir, I am now 60 years old and still employed. My company continues to contribute to my PF as I am still working. I was told that there is no interest for PF 3 years after 58 years age. If I am not getting any interest in my PF account, please advice what I should do. Thanks a lot for your advice. Vijay

Ans: Hello;

EPS closes at 58 but you may keep contributing to pf as long as you stay in active employment.

You will get interest on all your contributions. No need to worry.

Ensure entire 12% of employer contribution is credited to your pf account.

Best wishes

Latest Questions

T S Khurana |384 Answers |Ask -Follow

Tax Expert - Answered on Mar 04, 2025

Question by Raj - Mar 04, 2025Hindi

Money

Hi My father purchase ist and barsati floor in 1986 @ 2 lac... He made 3rd floor construction... We dont have construction expenses bills Now he want to sell@ 10 lac each floor to 3 indiviual buyers, means total 30 lac sale considration ., how it can be shown in income tax... Will 2 lac buy value is divide in 3 floor?

Ans: 01. As per details provided in the question, your Cost for all the three Flats is Rs.2,00,000.00 only. This is due to lack of documentary evidence about Cost of Construction (Bills & Source of Finance etc.).
02. LTCG tax may be comparativly less, if you opt for LTCG calculation without Indexation.
03. I would suggest you to get a Certificate of an Architect, who would certify the cost of your property as on 01.04.2001. You may treat this as your Cost for 3 flats and work out your tax details.
Most welcome for any further clarification. Thanks.

Mihir Tanna |1026 Answers |Ask -Follow

Tax Expert - Answered on Mar 04, 2025

Question by K - Feb 19, 2025Hindi

Money

I bought a flat in 2000 for 15 lakhs. Recently my wife got a share of land from her dad through settlement deed. We want to construct a house in few months time. Im planning to transfer my flat to her name through a settlement and then sell it for 1.5 crores so as to fund the new house. Will it still attract CG tax for me or for my wife?

Ans: In case you transfer asset to your spouse for inadequate consideration, Income out of such asset will be clubbed in your hands.

Milind Vadjikar |1083 Answers |Ask -Follow

Insurance, Stocks, MF, PF Expert - Answered on Mar 04, 2025

Question by shraddha - Feb 22, 2025Hindi

Money

Hello Sir, I am 35 year old working women & having SIP of 51K for 15 years. I started it 2 years before.(Current amount is 14L) My salary is 85K per month. I have 10 years daughter. I have currently purchased 2BHK home having home loan of 50L for 15years.My target is close the loan in next 5 years. Rent is coming 15K. EMI is 70K.(35K husband pays the EMI).NPS is 50K yearly. LIC 35K yearly. I want to retire by 2036 with amount of 2cr.Please suggest.

Ans: Hello;

With your current sip of 51 K you may be able to achieve a corpus of 2.13 Cr in 15 years time frame. (Assuming modest return of 10%).

You may use partial withdrawal from NPS/EPF, if any, and LIC policy proceeds to prepay the home loan.

Best wishes;

Mihir Tanna |1026 Answers |Ask -Follow

Tax Expert - Answered on Mar 04, 2025

Asked by Anonymous - Feb 21, 2025Hindi

Money

Till now I was filing income tax returns every year including the rental income for a flat jointly owned by me and my wife. For AY 2024-25, the rent was included in my wife’s ITR for convenience and no ITR wea filed by me as I had no other income. Is this ok?

Ans: No

Rental Income is required to be offered by owner/owners who has contributed in acquiring the property.

Mihir Tanna |1026 Answers |Ask -Follow

Tax Expert - Answered on Mar 04, 2025

Asked by Anonymous - Feb 19, 2025Hindi

Money

I have sold my flat for 3cr and purchased new flat for 4.5 ...but the builder has taken only 20% and rest 80% at possession..last week 13 th feb 2025 registration is done for new property...I will get possession around June 2025.I have done FD of rest amount.. kindly advice I will be taxed for fd and ltcg.

Ans: For claiming exemption u/s 54, gain amount is required to be invested in buying/constructing new property as per prescribed conditions. Thus, if before filing ITR if gain amount is paid to builder you are not liable to pay tax on LTCG. However, interest on FD will be taxable. Unutilised amount can be kept in capital gain scheme account.

Milind Vadjikar |1083 Answers |Ask -Follow

Insurance, Stocks, MF, PF Expert - Answered on Mar 04, 2025

Asked by Anonymous - Feb 27, 2025Hindi

Money

Sir/Madam, I want to sell my old house. With sale proceeds, instead of buying a property or constructing it, I want to go for investments for my grandchildren future. Where to invest and how to get investment portfolios online taking into account the incometax Implications. And as I am 70+ with heart issues and arthritis problems, kindly please lend your wiser counselling. Awaiting your reply, I remain. Thank you.

Ans: Hello;

How much is the approx current market value of your house?

What is the age of your grand children?

Please clarify.

Thanks;

Milind Vadjikar |1083 Answers |Ask -Follow

Insurance, Stocks, MF, PF Expert - Answered on Mar 04, 2025

Question by Gopal - Mar 03, 2025Hindi

Money

I am having 200 shares FV 10 and 20 NCD Part B of FV 10 which were lodged in November 2018 through my DP Moti Lal Oswal Chandigarh branch. Later I came to know that Linkin time return the same with objection to them but I did not receive the same. Now I am having only Photocopy of the same. Kindly advise me how many shares will be given to me and what about my Debentures?

Ans: Hello;

Please sort out the matter between your DP and yourself regarding original share certificates.

I don't think photocopies of share certificates will help.

Which company stock and NCD are you referring to?

Please clarify.

Thanks;

Mihir Tanna |1026 Answers |Ask -Follow

Tax Expert - Answered on Mar 04, 2025

Question by Chidambaran - Feb 18, 2025Hindi

Money

I sold my land and wanted to buy a flat. Do i have to invest only indexed cost amount on buying new property or entire amount on buying another property

Ans: For claiming exemption u/s 54F, entire sale proceeds of land is required to be invested in buying new property as per prescribed conditions.

Mihir Tanna |1026 Answers |Ask -Follow

Tax Expert - Answered on Mar 04, 2025

Asked by Anonymous - Feb 20, 2025Hindi

Money

I have one house in Haryana is my own name constructed by me in the year 1987 where I am residing at present. I also have another flat in Greater Noida jointly owned by me and by my wife. Now I intend to dismantle my existing house and reconstruct again with new structure with new map duly approved by Haryana Development Authority.I want to know as to whether I can I get exemption under Sec 54F from Capital Gains if I use the entire sale proceeds of Shares/mutual funds on reconstruction of my existing house. Here the point arises that I am not acqiring any new property. but reconstucting my self acauired property by using sale proceeds of Shares/mutual funds.I want to seek your advice as to whether I can avail exemption u/s 54F in this particular case

Ans: Claiming 54F for reconstruction of house can be matter of subject to litigation. In my view, dismantle of existing house and reconstructing new structure can be considered as construction of new house for 54F

Prof Suvasish Mukhopadhyay |446 Answers |Ask -Follow

Career Counsellor - Answered on Mar 04, 2025

Asked by Anonymous - Mar 04, 2025Hindi

Career

89.37 in JEE Mains Section 1: Can my son secure CSE in an NIT or IIIT?

Ans: May be in low ranked NITs

See more questions »

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

Video Reply
Audio Reply

WhatsApp
Facebook
Twitter
Copy link

Delete

Close

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus

Sign up

email

uname

mobile no

Country Code

Mobile number

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

LOGIN

x