DSOPF is a provident fund (PF). The tax rules, applicable to all PFs, whether Govt. or private, clearly lay down that withdrawals from PFs, partial or complete, are tax-free only if the PF is invested into for a minimum of 5 years. When you retire, your previous DSOPF account is closed and a new account is started. The maximum that you can run it for is 4 years till 58 years of age on re-employment, if retired as a Col or equivalent. Hence, the entire DSOPF amount that you receive on final retirement after re-employment, the principal contributed as also the interest earned, is fully taxable! So far we’ve never come across a case where Income Tax Dept. has raised a tax notice on this issue for a re-employed officer. But for how long will this continue, is anybody’s guess.