Tax laws provide 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.

In its recent order, the Bengaluru bench of the Income-Tax Appellate Tribunal (ITAT) also upheld this I-T provision while determining the matter of a retired employee.

This recent ITAT ruling is relevant not only for retired employees, but also those who have quit employment for various reasons, say, to be an entrepreneur or a homemaker, and have continued to retain a balance in their EPF accounts.

Source: Times of India