I have decided to take the plunge and be an entrepreneur. I am serving my notice period of a month with my current employer. I have worked in this organisation for 5 years. Will my EPF account continue to earn interest once I stop making contributions to it?
peakalpha Answered question February 1, 2022
Your EPF account will continue to earn interest on the accumulated balance. However, any interest earned after your resigning, will be taxable.If you decide not to return to the workforce, it is advisable that you withdraw your EPF balance within 36 months of you leaving your current job. If you do not apply for withdrawal within 36 months, the account will turn ‘inoperative’. An inoperative PF account will not earn any interest.
By Aparna Mundani
Wealth Manager, PeakAlpha Investments
peakalpha Answered question February 1, 2022