I left my corporate job on 28
th June 2019 after working in the company for 19 years. After that I started my own venture and since it’s a start-up I don’t draw any salary. Thus there is no contribution to my PF account post 28
th June 2019.
I do not wish to withdraw the PF money for now. So wanted to know do I have to declare the interest on PF earned as income and pay income tax on the interest.
Ans: Your EPF account is eligible to get interest even if there is no fresh contribution till the retirement even without contributions. In case of retirement and where corpus is not withdrawn, post 3 years, the account becomes inoperative and no interest is paid. Hence, you can make periodic small withdrawals so as to continue to earn interest.
Interest earned on the account will become taxable in case there is no fresh contribution to the account. You can declare it under income from other sources.