Recently I took VRS from public sector bank and balance available from my contribution to PF is continued with the bank at my request. This was done as the interest on PF is at a higher rate and also tax free (correct me if I am wrong). Now I understand that there is a new rule for PF in such cases where there is no addition by way of contribution to this balance then from next financial year bank shall not pay interest for the balance retained with them. Is this true ? kindly clarify....
thanks in advance
From India
thanks in advance
From India
Dear Ravindra,
Yes, the Central Board of Trustees (EPF) has decided on 15.9.2010 to not pay interest for the inoperative accounts from the 37th month onwards. This will come into force w.e.f 1.4.2011.
Abbas.P.S
From India, Bangalore
517Yes, the Central Board of Trustees (EPF) has decided on 15.9.2010 to not pay interest for the inoperative accounts from the 37th month onwards. This will come into force w.e.f 1.4.2011.
Abbas.P.S
From India, Bangalore
Dear Abbas,
Thank you for the quick response. What I understand from your clarification is as under:
my last contribution was in October 2010. That means fund will stop paying interest from October 2013 (37th month from the last contribution when the account became in-operative). Kindly clarify whether I am right in understanding the rule.
thank you
From India
Thank you for the quick response. What I understand from your clarification is as under:
my last contribution was in October 2010. That means fund will stop paying interest from October 2013 (37th month from the last contribution when the account became in-operative). Kindly clarify whether I am right in understanding the rule.
thank you
From India
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