Closing and Withdrawing EPF amount ?

POSTED BY Amal ON October 17, 2012 12:25 am COMMENTS (3)

 

I joined company A on August 2005 and worked for 1 year. They created a PF account for me. Then 1 year I took a break and did some research assistantship. So no PF was deposited for that time. Then again in 2007 August I took up another job. I transferred the old PF account to the new Company. I worked in the company till 2010 January. After that i left for starting my own venture. And no PF has been deposited from 2010 january till now.

So I have totally worked for 3 1/2 years of service in 2 different companies.

I heard that PF amount becomes dormant after 3 years (There is no interest). So I am planning to withdraw the amount after closing the account. Is it advisable ?. And will there be TDS on the source on the amount ?. If yes, whats the percentage. You can assume that I don’t earn any money this year since i am running a startup. And my amount is 2.5 lakhs rupees. Or is there a way I can reactivate the account ?

Can you advice me on the same please. 

3 replies on this article “Closing and Withdrawing EPF amount ?”

  1. Navneet Kumar says:

    Earlier it was 3 years I think. Now GoI has changed it to 1 year.

  2. Biswa Singh says:

    I think after one year of leaving a job and not tranferring the EPF then the interest amount is not paid. Its better to withdraw the amount and invest it somewhere lese. If you still want something like EPF then you can open PPF.

    1. Not sure if thats true ! . Only after the 3 yrs of inactivity , the interest is not paid .

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