New Delhi, July 26 -- Many salaried employees assume that if no tax is deducted while withdrawing their EPF, the money is automatically tax-free. However, tax experts say that is one of the biggest misconceptions around EPF withdrawals.

Suvarna Mishra, HR Director at Pluxee India, mentioned that understanding the distinction between TDS and actual tax liability is crucial before making any withdrawal.

"TDS is only a mechanism to collect tax, while the final tax liability is determined when the employee files the income tax return," Mishra adds.

According to Mishra, EPF withdrawals are generally exempt from tax if an employee has completed five years or more of continuous service.

She points out that continuous service is not limited t...