Tax on Employee Provident Fund is the major concern for every employee. Some believe that EPF withdrawals are not taxable. Withdrawal from EPF can be taxable. TDS will also be deducted in certain cases.
If the employee withdraws the EPF balance before completing 5 years of service, then EPF balance is taxable.
For calculating the period of 5 years of service, it is not necessary that service should be continued with the same employer. He may have worked in different organizations. But when a person changes the job, he must transfer his previous company PF balance to new company’s PF Account (UAN Number will remain the same). (Read More- Employee Provident Fund)