Question
I am changing jobs and considering withdrawing my PF, but I have heard there may be tax if I have not completed five years.
Answer
Yes. EPF withdrawal is taxable if you withdraw before completing 5 years of continuous service (service across employers counts if the balance was transferred). The employer contribution and interest are taxed as salary, your own contribution may lose Section 80C benefit, and interest on your share is taxed as other income. TDS at 10% applies if the taxable amount exceeds Rs 50,000 (20% without PAN); below Rs 50,000 no TDS is deducted. After 5 years, the entire withdrawal is fully tax-free. From 1 April 2026 these rules sit under Section 392(7) of the Income-tax Act 2025.
This answer is general information based on the law as it stood when written and is not professional advice on your specific situation. Verify the current position and consult a qualified professional before acting. See our disclaimer.