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I have recently retired, after which the provident fund contributions have been stopped. I have a PF accumulation of 50 lakh.

Can I continue to keep the above-accumulated amount in my PF account without withdrawing, as PF will earn a risk-free interest of around 8.5%? Further, whether such interest on PF after retirement will be taxable, whenever I decide to withdraw it? 

- Murali Manohar

It is assumed here that you have retired at the superannuation age of 58 years. Under the PF rules, an account becomes inactive and does not earn further interest where an employee retires from service after attaining the age of 55 years. Once termed inoperative, the account stops accruing any interest.

So, it is advisable that you withdraw the accumulated PF amount at the earliest as per the prescribed time limit post-retirement.

- Answered by Arvind Rao, founder, Arvind Rao & Associates

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