Employee Provident Fund (EPF) is a fund meant for employee welfare. Every month, 12% of the employee’s basic salary and dearness allowance is contributed to this fund account. Besides the employee, the employer also contributes an equal amount in EPF. An employee can withdraw this PF balance according to the PF withdrawal rules. If the amount withdrawn exceeds Rs. 50,000 in a year, the government deducts TDS (Tax Deducted at Source) under section 192A of the Income Tax Act. It means you will receive only the balance amount after deduction on withdrawal
Form 15G
Form 15G is a declaration that can be filled out by fixed deposit holders (individuals less than 60 years of age and HUFs) to ensure that no TDS (tax deduction at source) is deducted from their interest income in a year.
As per the income tax rules, it’s mandatory for banks to deduct tax at source (TDS) in case the interest earned on your fixed deposit, recurring deposit, etc. It is more than Rs. 40,000 in a financial year and Rs. 50,000 for senior citizens (form 15H).
Form 15G or EPF Form 15G is a document people submit to ensure no TDS is deducted on the interest you earn from your EPF, RD or FD. This form can be filled out by individuals below 60 years of age and Hindu Undivided Families (HUFs). For individuals aged 60 years and above have a different form- Form 15H.
Recently, the EPFO Unified portal launched a facility to submit EPF Form 15G for PF, which allows EPF members to withdraw PF online. Also, you can avoid TDS, which is a great benefit.
Where to Get Form 15G?
Form 15G can be easily found and downloaded for free from the website of all major banks in India, as well as the official EPFO portal. Additionally, this form can also be easily downloaded from the Income Tax Department website. Moreover, you also have the facility to submit form 15G online on the website of most major banks in India.
Is Form 15G Mandatory for PF Withdrawal?
Yes, Form 15G is mandatory if you don’t want TDS to be deducted from the PF withdrawal amount. Section 192A of the Finance Act 2015 states that PF withdrawal will attract TDS if the withdrawal amount is more than Rs.50,000 and your employment tenure is of less than 5 years.
Keeping these above conditions in view, these are the PF withdrawal rules that will be applicable:
- 10% TDS: if you submit your PAN card but fail to submit Form 15G
- 20% TDS: if you fail to submit both your PAN card and Form 15G
- No TDS if you submit Form 15G.
Can We Submit Form 15G Online for PF Withdrawal?
- Firstly, log in to the EPFO UAN portal
- Then, select ‘Online Services’ and click on ‘Claim’
- For verification, enter your bank account number and click on ‘Verify’
- Press on ‘Upload Form 15G’ below the ‘I want to apply for’ option
How to Fill Form 15G for PF Withdrawal?
- Login to EPFO UAN Unified Portal for members.
- Click on the Online Services option.
- Verify the last 4 digit Bank account.
You are required to fill out only Part I of Form 15G for PF withdrawal. Follow these instructions to fill up the other fields in Form 15G:
- Name of the Assessee (Declarant) – Name must be as per your PAN Card
- PAN of the Assessee: Form 15G can be submitted only by an individual and not by any firm or company. Enter your valid PAN card number and make sure the fourth letter of the PAN card number is ‘P’ otherwise your declaration will be treated as invalid.
- Status: Your applicable income tax status ,i.e Individual in this case.
- Previous Year: You have to select the financial year in which you are claiming the non-deduction of TDS.
- Residential Status: Mention ‘Resident’ as your residential status because NRI is not allowed to submit Form 15G.
- Address: Mention your address, preferably the one mentioned in the Aadhaar card along with your PIN code.
- Email ID and phone number: Provide a valid email ID and your contact number for further communications.
- (a) Whether assessed to tax under the Income-tax Act, 1961: Place a tick in the ‘’Yes’’ box if you filed an ITR in any of the last few years.
(b) If yes, latest assessment year for which assessed: Look at the assessment year from the latest ITR and mention the same. - Estimated income for which this declaration is made: In this field, mention the estimated withdrawal amount.
- Estimated total income of the P.Y. in which income mentioned in column 16 to be included: Mention the total estimated income of the financial year in which you plan to withdraw the PF amount.
- Details of Form No. 15G other than this form filed during the previous year, if any: If you have filed another Form 15G anytime during the financial year, then mention the total number of Form 15Gs filled and the total of income amount of all these forms, i.e. total up the amount in filed (16) of all the forms.
- Details of income for which the declaration is filed: In the last part you need to provide the following income details:
- Investment identification number
- Nature of Income
- Section under which tax is deductible
- Amount of Income
TDS on EPF Withdrawal Rules
According to section 192A of the Finance Act, 2015, EPF withdrawal will attract TDS (Tax Deducted at Source) if the withdrawal amount is more than Rs.50,000 and you worked for less than 5 years. One can also use Form 15H to fill the TDS exemption, the only difference is Form 15G is for those who are below 60 years of age, whereas Form 15H is for those whose age is more than 60 years.
When is the TDS Applicable?
In case the employee wishes to withdraw his/her EPF amount, which is more than or equal to Rs.50 000 with less than 5 years of service.
1) TDS is deducted at 10% if an employee submits the PAN Card (But the 15G form for EPF/15H is not submitted).
2) TDS will be deducted at the rate of 34.608% if an employee fails to submit the PAN Card. (Also, Form 15G/15H is not submitted).
When is the TDS not Applicable?
1) When one transfers their EPF account to another account.
2) Termination of service happened due to ill-health of the employee, discontinuation of business by an employer, completion of a project or other cause beyond the control of an employee.
3) If an employee withdraws the EPF amount after a total of 5 years of service (Including the service with a former employer).
4) If the EPF amount is less than Rs.50 000, but the employee has rendered service of below 5 years.
5) In case the employee withdraws more than or equal to Rs.50 000, with the employment of fewer than 5 years, but submits Form 15G/15H along with PAN Card.
FAQs
Is a PAN card necessary for filing Form 15G?
Yes, your PAN card is mandatory for filing Form 15G. Without proper PAN details, your declaration will become invalid.
When should I submit Form 15G for PF withdrawal?
For PF withdrawal, you should submit your Form 15G at the time of submitting the PF withdrawal claim form. In all other cases, you should submit your Form 15G at the beginning of every financial year. This will ensure that there is no tax deduction at source from your interest earnings.