New EPF Norm-On Employment Termination EPF Interest Taxable

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    A leading news daily reports that interest credited to an employee provident fund (EPF) account after an individual ceases to be in employment is taxable in his hands in the year of credit. The recent ruling has come in by the ITAT Bengaluru which not only upheld the provision but cleared the air surrounding the issue and says that the ruling is applicable for retired employees as well as individuals who are given a pink slip or leave the job for several reasons but continue to get interest payments in their EPF account with the retirement fund body.

    New EPF Norm-On Employment Termination EPF Interest Taxable
     

    Tax expert on this provision says,"Post-employment, whether on account of termination, resignation or retirement, several employees continue to maintain their EPF accounts and earn interest on the same. Unfortunately, they are usually not aware of the tax implications on the interest accretion in the fund after termination of employment".

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