Going abroad for long and would not like to withdraw EPF

Q & A Forum › Category: Provident Fund (EPF & PPF) › Going abroad for long and would not like to withdraw EPF

navsingh asked 10 years ago

Dear Sreekanth, I am planning to go abroad soon. I want to know in detail, what are the options do I have related to EPF. If I want to withdraw, when I can do that and whether my portion / employee portion & interest all will be withdrawn? And how about the pension accumulation? But if I continue (not withdraw): Q1. Can I do it? Q2. How long I can keep the account w/o depositing any amount? Q3. How long Government will pay interest? Appreciate if you can answer in detail for especially second scenario. Thanks & Regards Navneet Singhal

1 Answers

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Sreekanth Staff answered 10 years ago

Dear Navneet, As soon as you leave your current job, you can apply for full PF balance withdrawal. You can submit proofs of foreign travel/assignment. You can withdraw both EPF & EPS (EPS, if service is less than 10 years). You can continue holding your EPF balance. You will get interest on the balance till 58 years (retirement age as pre EPF & as per current PF rules). If you are planning to stay in abroad for longer period, you may consider withdrawing the funds and invest in better investment avenues for long term. Read: http://www.relakhs.com/list-of-best-investment-options-schemes-in-india/

MP replied 7 years ago

Hi Sreekanth,

I have a similar query to this one. Since I too will be moving abroad permanently in a couple of months and I have less than 5 years of continuous employment, do you suggest I withdraw my PF after I leave my job and invest the money elsewhere or let it remain in my PF account and earn interest from the EPF account till i can.

Sreekanth Staff replied 7 years ago

Hi…You need to take the decision based on your Financial Goals & Asset allocation strategy. For example : If you have been adequately investing in risk oriented investment products like Muutal funds, shares etc for your financial goals then you may keep the pf balance as it is. But do note that the interest earned during ‘non-contribution’ phase is a taxable income.
In your case, the interest income during ‘contribution phase’ (<5years) is also taxable as the service period is less than 5 years..

MP replied 7 years ago

Thanks for the prompt response Sreekanth. I have an adequate investment in equity instruments and was looking to open a FD at 8.25% interest rate. Will it be better to keep the money in the EPF account at the current rate – 8.65% (correct me if i am wrong) or in should i move the money to the FD considering I will be taxed in either of these.

Sreekanth Staff replied 7 years ago

Hi.. If you are planning to take up aborad assignment for a long-period and/or would like to have control on your funds (liquidity, ease of managing the funds, service quality..) you may withdraw the PF Funds and re-invest as per your requirements.