Hare Krishna,
I was member of PF Delhi region.I discontinued to be pf member after the closure of my employer company.in may 2013. Now when I withdrew my pf balance in Dec 2017 then pf office gave me interest on my pf balance only up to May 2016.citing the reason that interest in payable only for three years after it becomes inoperative.But fact of the matter is that I didn't withdrew my pF balance as there was CHANGE in LAW which states that interest is payable even to inoperative accounts like mine. Here pf Staff unofficially says that our systems are not updated for this change in LAW.. My query is \"AM I ENTITLED FOR INTEREST ON PF BALANCE TILL DEC. 2017
1 Answers
Hi,
As per the EPFO’s notification issued in last FY, all in-operative EPF accounts get interest payment from April 2016 onwards.
So, in your case, ideally the interest would have been paid till May 2013 + 3 years before it became inoperative ie till May 2016 + based on new notification interest even on inoperative ac from May 2016 till the closure of account ie till Dec 2017.
Hence, I believe that you are eligible to get the interest payment for the entire duration.
But, kindly note that interest accrued (if any) during non-contributory period is a taxable income.
Kindly read :
https://www.relakhs.com/epf-interest-income-withdrawals-taxation/
https://www.relakhs.com/interest-inoperative-epf-accounts/
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