EPF a/c interest calculation : Components & illustration (Employees’ Provident Fund)

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• I have some doubt:

  I have worked on Company A from March 2006 to October 2008.
  Then I shifted my job and worked on Company B from November 2008 to November 2011.
  Then I shifted again to Company C and working there since November 2011.

  Both my PF A/Cs in Company A and Company B remained unoperative until April 2015 as I did not transferred the balance in my old PF Accounts to the new Accounts.

  I have initiated and get the balance transferred from PF A/Cs of Company A and Company B to Company C in April 2015 and the transfer has already been done and the balance is now reflecting in my New PF A/C.

  However, the EPFO did not pay any interest on the amount accumulated on my PF A/Cs in Company A and Company B.

  So, my question is:
  1) Do I entitle to get the interest for the three years even though the balance transfer from old PF to new PF account is initiated after three year (as in my case)?

  2) If yes, what I need to do to get the interest from the EPFO.

  Thanks,
  Sandeep

  • Dear Sandeep,
    Company A - you have to get interest for the period from 2008 to 2011 (3 years) though no contributions were made, after that the epf a/c would have become in-operative.
    Company B - you have to get interest for the period from 20011 to 2014 (3 years) after that the epf a/c would have become in-operative account.
    Yes, you are entitled to get interest.
    You may contact the nearest EPFO office for details. Contact details are available on EPFO website.

• My salary was 4500 at exit,I have received 17615 in form 10c,so what was my service year calculated, 4year or 3 year.actually I have spent 6 years in job.but epf was deducted 1year later,now my account was inoperative,& epfo doesn't say anything,except saying you have settled

• Dear Srikant,

  Could you please tell that in pf slip form 23 is pension amount included or only epf from employee & emplyr?

  Please confirm

  Tks in advance.

  • Dear Sheela,
    EPF/ PF contributions are only reflected in the Form 23 and it is maintained by the respective PF offices in the member's account individually.

• Hi Sreekanth,

  I have been working from Feb 2013 for a company. I am planing to resign and moving to hometown. Also no more planing to work for any company. Can you help me on below given queries?

  1. Can i keep the account without withdrawing money? Will the interest will be calculated up to 58 years?
  2. If withdraw money how to get full amount without any tax?
  3. Can i deposit money for each month as a self employment for each month?

  Thanks In Advance,
  Mohan

  • Dear Mohan,
    1 - Interest will be credited for next 36 months only. After that, the EPF a/c will be considered as inoperative one.
    2 - You can not avoid tax. Tax is applicable.But, if you do not have any other income in a given Financial year then you can file ITR and get refund of any TDS that has been deducted, accordingly .
    3 - No. You may consider PPF (Public Provident Fund)

    • Hi Srikanth,

      If interest calculated fro 36 months can i leave it without encash?
      And can i apply after 2 years to withdraw(i.e. completion of 5 yr period)?
      So it is like 3 years operated account and 2 years In-operated account.

      Please suggest me.

      • Dear Mohan,
        Your period of service can still be considered as 3 years only, as not contributions will be made for 2 years.So, accordingly TDS rules apply on withdrawal .

• Hi Sreekanth,

  i have worked in X Company for 4 Years and i joined in Y Company and I have transfer my PF to Y(New) Company.

  will interest calculated on my OLD PF(from X Company) money or will calculated only for New PF(from Y Company)

  Thanks,
  Srinivas

  • Dear Srinivas,
    The balance is carried forward and get accumulated in your EPF a/c. The interest is calculated on the entire balance :)

    • Thank you so much Sreekanth.

• Hiii sreekanth I have a pf account in which my contribution is around 900 rs p/m for 6 month..I left tht company a year ago...in may 2014 ...so now how many amount I will get if I withdraw the money

  • Plz hlp me on this

    • Dear Pankaj,
      Are you currently employed? Do you have active UAN?

• please send excel so that i can calculate my PF

  • Sent, dear Tushar..

• Hi

  I have a question on the taxation of the EPF amount. If I work in a company for 3 years (throughout which the EPF contributions are made) and then I quit the company but do not withdraw or transfer the EPF amount. If I submit the papers to withdraw the EPF amount after 2 years
  1. Will I be taxed as I have technically let my account be "alive" for a continuous period of 5 years?
  2. Will I earn interest for the 2 years that I have not contributed?
  Please clarify.
  Thanks

  • Dear Sumitra,
    The EPFO's circular says 'years of service', so in this case TDS will be applicable. You will get interest, after 3 years of non-contribution the account will be treated as in-operative one and interest will not be paid.
    kindly read my article - Inoperative EPF A/c .

• you are requested to please give me advice that i will transfer the EPF from old employer to current employer account than the amount of pension contribution will be transfer along with employee share and employer share

  • Yes, dear Hari :)

• i am due to retire on 30/06/2015.I understand i can keep my PF with my company;s PF Trust (recognized by GOI) for 3 years & interest received at the end of 3 year period is not taxable.Can u elaborate the income tax rule to claim exemption of above interest @.

  • Dear Pratap,
    I do not have information as of now.

    • Please help in getting information on the same ...I also want to know whether I earn interest for one year or three years without withdrawing it

      • Dear Mauli,
        What is that you require?