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Livemint : May 21, 2019, 12:46 PM

In your case, you have joined the new employer after a gap of two years and two months; so there is a gap in continuous service.

There are a few exceptions under which the period of five years of continuous service is exempted—such as when the service is terminated due to the employee’s ill health or discontinuance of the employer’s business or reasons beyond the control of the employee. In such instances, the withdrawal amount is tax-exempt. But none of these exceptions are applicable in your case, resulting in your PF becoming taxable.

However, if EPF is withdrawn before the completion of five years of subscription, i.e., continuous service of five years, the proceeds would be taxable under the Income Tax Act and TDS (tax deduction at source) would be deducted by the PF authorities. If there is any change of job and the total PF balance is transferred to the new PF account maintained by the new employer, the PF is considered to be continuous service. But there should be no gap in contribution to PF to avail of the continuous service clause.