What is one characteristic feature of an EPF account?

An EPF (Employees' Provident Fund) account is designed primarily for retirement savings, and one of its key features is that it provides tax-free withdrawals after retirement. This means that when individuals reach the retirement age and start to withdraw funds from their EPF accounts, they are not charged income tax on these withdrawals. This tax benefit encourages individuals to save for their retirement, as it allows them to retain more of their funds when they need them the most.

In contrast, other options do not accurately represent the characteristics of an EPF account. For instance, the idea that it allows unlimited withdrawals is incorrect because there are specific conditions and limits on withdrawals, particularly before retirement. Similarly, the requirement for annual renewal does not apply to EPF accounts, as they are typically maintained until the individual retires or ceases employment. Lastly, while EPF accounts are primarily for employees in the organized sector, it is not restricted solely to government employees; private sector workers are also eligible to open an EPF account. Thus, the feature of tax-free withdrawals after retirement stands out as a defining characteristic of an EPF account.