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November 28, 2016
2016-2017

India revises provisions relating to Provident Funds previously deemed as Inoperative Accounts

The Indian Ministry of Labour and Employment issued a notification on November 11, revising the rules on when a Provident Fund becomes an inoperative account and when interest may be credited to it. The new rules make it easier for employees who leave an employment without withdrawing their funds to continue to receive interest in the fund. The changes do not cover so called International Workers.

A Tax Alert prepared by EY's People Advisory Services group, and attached below, provides additional details.

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Full text of Tax Alert 2016-2017

 

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