EPF withdrawal tax rules explained: When your corpus is tax-free, when it is taxable and how TDS works

EPF withdrawals are tax-free if an employee completes five years of continuous service, which can include service under multiple employers if the balance is transferred.

Withdrawals before five years are generally taxable, except for specific cases such as ill health or employer closure.

TDS on early withdrawals: no TDS if amount is below ₹50,000; 10% TDS if above ₹50,000 and PAN furnished; higher rate without PAN.

TDS is not the final tax liability; the actual tax is determined when filing the income tax return.