Any accumulated balance of recognised provident fund due and payable to the emplyee is exempt if any of the following conditions are satisfied 1.Emplyee has rendered a continuous service of more than 5 years OR 2.The service is not continuous and has been terminated by reasons beyond emplyee's control such as ill health,cessation of emplyer's business,etc OR 3.The balance has been transferred to another recognised provident fund on cessation of employment. So it is clear that unless you can show point no 2,the service has to be for more than 5 years or PF balance has to be transferred to a recognised provident fund. All this is as per sec 10(12) of the Income tax Act 1961 3
