It is always a confusion for peoples that what I need to do with my PF account, if in a career gap or jobless situation.
Employee Provident Fund is one of the great investment methods to save a little money per month, it also gives 8-9% interest annually. One important thing is that these earnings are tax-free if you are not withdrawing the money before 5-year completion.
Benefits of Keeping EPF
- EPF considered as Retirement benefit money, so it is always better to continue until you are employed
- It is Tax-free if you are not taking PF amount within the 5-year timeline
- switching PF account from one company to new company is an easy process
PF Amount withdrawal
You can withdraw your PF amount if you unemployed for 60 days after the last job. UAN is a mandatory number which will be provided by your previous employer. Before withdrawing your PF you need to make sure that whether you completed 5 years with your PF account or not because if the PF is active less than 5 years, then there will be tax while withdrawing the money. You need to update KYC which is mandatory nowadays, Also you need to verify the bank account, Adhaar card as well as the PAN(PAN needs to be updated to avoid 35% tax for the PF balance 50000 INR and above) card before claiming the amount.
Refer these videos to know how to check your PF balance and withdraw your PF,