Recently, I took VRS from a public sector bank, and the balance available from my contribution to PF is continued with the bank at my request. This was done because the interest on PF is at a higher rate and also tax-free. Now, I understand that there is a new rule for PF in such cases where there is no addition by way of contribution to this balance; then, from the next financial year, the bank shall not pay interest for the balance retained with them. Is this true? Kindly clarify.
Thanks in advance.
From India
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Thanks in advance.
From India
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Yes, the Central Board of Trustees (EPF) decided on 15.9.2010 not to pay interest for inoperative accounts from the 37th month onwards. This will come into force with effect from 1.4.2011.
Regards,
Abbas.P.S
From India, Bangalore
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530Regards,
Abbas.P.S
From India, Bangalore
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Dear Abbas,
Thank you for the quick response. What I understand from your clarification is as follows: my last contribution was in October 2010. That means the fund will stop paying interest from October 2013 (37th month from the last contribution when the account became inoperative). Kindly clarify whether I am correct in understanding the rule.
Thank you
From India
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Thank you for the quick response. What I understand from your clarification is as follows: my last contribution was in October 2010. That means the fund will stop paying interest from October 2013 (37th month from the last contribution when the account became inoperative). Kindly clarify whether I am correct in understanding the rule.
Thank you
From India
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PF Amount Balance Check.xls
Circular on PF Damage & Interest Calculations.pd f