Hi Srikanth,
I relocated to Vietnam, my last contribution to EPF is May 2017.
When i return back to India I will again go for job, so I don't want to withdraw my PF amount.
I understood that i will get interest and i need to pay tax on the interest as per your earlier answers, is it correct?
My Query are
- Shall i keep it with EPF organisation or investing in any other way is good?
- if you say in other way of investment, which investment is good with low risk?
3 Answers
Hi,
Yes, your understanding is correct.
The interest earned during non-contribution period is a taxable income.
It depends on how long you would take to rejoin in India and start contributing to EPF scheme again...
May I know your age and financial goals??
Related article :
https://www.relakhs.com/epf-interest-income-withdrawals-taxation/
Thank you Srikanth,
I have a plan to stay in VN for a 5 years.
I am 41 years old, Two kids (7 years & 5 years old) want to secure their future and my retirement life.
I don't know about market & MF's (I want to go with a less risk, with moderate returns)
Current Financial status:
- My EPF contribution as per the pass book is around 5 Lacs
- After all my expenses (home loan + car loan) i can save a 1.0 L/monthÂ
- One Lac Lic policy + SBI life (traditional) policy 25K/Year
Dear Satish,
Based on your profile, I believe that withdrawing your accumulated EPF balance can be a prudent decision.
But, do note that if PF is withdrawn within 5 year service period then such amount becomes a taxable income.
Your high priority task is to get adequately covered with a term insurance.
Suggest you to go through below articles, can be useful, and do revert to me with more queries (if any) ;
https://www.relakhs.com/personal-financial-planning-articles-list/
https://www.relakhs.com/traditional-life-insurance-plan/
https://www.relakhs.com/insurance-importance-life-health-accident-covers/
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