EPF Account: A part of the salary of every salaried person keeps getting deposited in this account. People working in the private sector keep changing their jobs from time to time. Many times they leave the job, due to this their share in the PF account stops. In this case this account becomes inactive. Along with this, the interest received on the money deposited in the account is also converted as taxable income.
In such a situation, experts advise people to do any kind of withdrawal from the PF account within three years after leaving the job. This will save you from double losses. We are going to tell you about the rules related to inactive PF account-
When does PM account become inactive?
Let us tell you that if a person leaves the job and there is no transaction of any kind in his EPFO account for 36 months i.e. 3 years till the age of 55 years, then that account will be classified as inactive account by EPFO. is put in. In this case, you can suffer a great loss. To save the account from inactivity, you must withdraw from the account once in the middle of 3 years. With this, your account will not go in the inactive category.
Tax will have to be paid on dormant account
According to the rules of PF account, if there is no transaction in any account for 3 years, then you are put this account in the category of inactive. Even after this, you have been getting interest on the deposited money, but you have to pay tax on the interest earned on these money. Even after this, in case of non-claim on this money for 7 years, these money is sent to Senior Citizen Welfare Fund (SCWF). You can get this money back within 25 years by claiming it from the Senior Citizen Welfare Fund.