Many Provident fund subscribers are having a doubt, Is it mandatory to withdraw PF after retirement? Here we present some useful information related to PF after retirement…
Provident Fund, a Government scheme introduced for benefit of employees and individuals after retirement. The period of superannuation of an employee when they don’t have any earnings, then these provident fund savings supposed to utilize.
The Provident fund does have different plans under it such as public provident fund, employee provident fund, general provident fund, and pension scheme. The withdrawal of provident fund amount after retirement does differ based on plans that an employee subscribed to.
Employee Provident Fund Withdrawal
Employee Provident fund subscriber has to withdraw their full lump sum amount accumulated after the retirement age.
The lump sum amount will have withdrawn by the subscriber, and If the same amount not withdrawn till three years from date of retirement. The accumulated amount taxed and the subscriber has to pay the full tax on the EPF amount.
Public Provident Fund
The Public Provident Fund has a maturity period of 15 years and individuals had to withdraw full amount once they reach the maturity period.
The account balance from PPF accounts directly transferred to the suburb personal bank account along with the full interest amount. If not withdrawn, the scheme has to extend, or else the PPF account amount taxed as per the provident fund act.
General Provident Fund
The General provident fund account holder has to provide necessary documents to the employer, as after the reteritment the employer will transfer the entire amount in their provident fund account.
The amounts once landed in a PF account will have withdrawn by the subscriber else the amount will be levied with applicable taxes. The interest may applied on full amount which includes the accumulated amount along with interest gained. Let’s check some of the faqs on Is it mandatory to withdraw PF after retirement.
Is it compulsory to withdraw pf amount?
After retirement, you don’t need to withdraw the money, because your bank account will reflect with retirement fund with maturity. After that once opted for pension scheme will have partial stay back for pensions every month.
What is the new rule of pf withdrawal after retirement?
There is no new rule in terms of withdrawal after retirement but only before retirement they can withdraw 75%. So, if you have already retired the PFO will send you the PF fund with maturity.