Hi,
What are the options for employee on PF after retirement? How taxes work?
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As per the EPF Act, individuals must retire once they reach 58 years of age to claim the final settlement of PF. Individuals will receive their contribution and the employer’s contribution made towards EPF along with the interest that has been generated. Depending on the number of years of service, the employee is also eligible to get the pension amount that has been made towards the Employees’ Pension Scheme (EPS).
The interest earned on the Provident Fund is normally tax free in the hands of the investor. This is true if you have completed five years of continuous service. If you are retired and do not withdraw your PF, the same becomes taxable.
If individuals reach the superannuation age and continue to work, they can remain EPF members.
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