New Delhi, July 4 -- Employees' Provident Fund (EPF) withdrawals are exempt from tax if you have completed at least five years of continuous service. However, if you withdraw your EPF balance before that period, except in certain situations, the amount becomes taxable in your hands.

If you have made such a withdrawal during FY 2025-26, it is important to report it correctly while filing your income tax return (ITR) for AY 2026-27 to avoid notices or incorrect tax computation.

EPF is a popular retirement savings scheme in which both employers and employees contribute some amount every month.

Under the previous EPF rules, an employee typically contributed 12% of their basic salary and dearness allowance (DA), while the employer made a ma...