How TDS is applied on EPF if I withdraw it after 5 years but before 4.5 years of employement (5 months of un-employment?

Question

I have read following things about EPF:

If salaried persons wish to withdraw their EPF accounts, they have to submit form 19 to their ex-employers, who in turn, have to sign and attest it.

It is important to note that withdrawal of the EPF account by a salaried employee between switching jobs his or her jobs is illegal. As per PF withdrawal rules, a salaried employee can withdraw a provident fund account on two counts; first, if he or she has no job and second, if two months have elapsed since his or her last employment (not attached to any organization or unemployed for 2 months).

If a salaried employee opts for withdrawal after continuous service of five years or above, there will be no TDS deduction on the amount. It is important to note that if withdrawal is made before the completion of five years of continuous service, the amount withdrawn will be taxable.

the government of India’s Unique Account Number or UAN simplifies the procedure (management and transfer) given that it is allotted to all salaried employees and will not change throughout their careers.

I have few doubts:

Consider the case in which I have joined a company for first time. I have worked for 4.5 years and resigned but did not joined any new company. So, I did not transferred EPF amount also did not withdrawn.

1. Now after 5 months I want to withdraw my full EPF amount (as I am unemployed). What will a happen will it apply TDS?
2. What if I join new company after 5 months of gap? Should I get back to old employer and perform transfer procedure.

Answer 1

Now after 5 months I want to withdraw my full EPF amount (as I am unemployed). What will a happen will it apply TDS?

As per the current rules; Yes you can withdraw without any taxes. The rules are fluid and changing, there is a proposal to allow only individual contribution and not company contribution, taxes as well there are proposals... So if you are looking to withdraw, do it ASAP.

What if I join new company after 5 months of gap? Should I get back to old employer and perform transfer procedure.

Transfer procedures are generally initiated from new employer [there is no hard and fast rule]. There is a form that needs to be filled out and its routed to PF office to Old Employer.