Withdrawing funds from EPF can be a complicated process that involves paperwork and other formalities. Form 15G is one of the most significant pieces of paperwork for withdrawing funds. This form enables the authorities to determine that the income of the EPF holder is below the taxable level and exempts them from the deduction of TDS collected on their EPF account.
This article will help you understand the meaning of Form 15G, how to download one, and the withdrawal process.
What is Form 15G?
Form 15G is a declaration form stating that an individual's income is below the tax threshold. It is used not only in EPF but also in Fixed Deposits and Recurring Deposits. It allows individuals to get a tax exemption on the interest earned on various investments.
By submitting a Form 15G, individuals can avoid the TDS and declare that their earnings from the salary combined with the EPF interest are below the income tax slab. Senior citizens must submit Form 15H instead of 15G in such cases.
Is Form 15G mandatory for PF Withdrawal?
Yes, Form 15G is mandatory if the individuals don’t want a deduction of TDS from their EPF amount. It also depends on their eligibility and whether they should fill out the form.
If the individual's EPF amount is lower than Rs 50,000, they may not submit Form 15G. Individuals aged below 60 and Hindu Undivided Families (HUFs) members qualify to submit the form.
As per Section 192A of the Finance Act 2015, TDS is applicable on PF withdrawals of more than Rs 50,000 if your tenure of employment is less than 5 years.
How to Download Form 15G for PF Withdrawal?
To download Form 15G for EPF withdrawal, individuals must visit the EPFO's official website. Locate the EPF Form 15G and download the same on your computer or smartphone.
Apart from this, individuals can visit the official site of the income tax department and retrieve Form 15G.
How to fill out Form 15G for PF Withdrawal?
Individuals are required to fill out PART I of the Form 15G. Here are simple steps to fill out the Form 15G for PF withdrawal:
- Name of the assessee (declarant): Write your name per your PAN card in this section.
- PAN of the assessee: Form 15G is only available for individuals, not firms or businesses. Enter the valid PAN number and ensure the details are correct, or the declaration stands invalid.
- Status: In this field, you must enter whether you are an individual/Hindu Undivided Family (HUF) /AOP, whatever is applicable.
- Previous year: You must pick the financial year in which you claim the non-deduction of TDS.
- Residential status: Enter Indian Resident as your status, as NRIs cannot claim tax deductions.
- Address: Enter your valid address with the pin code as per your Aadhaar card.
- Email ID and phone number: Enter your email address and valid phone number for updates.
- (a) Whether assessed to tax under the Income-tax Act, 1961: Tick on yes if you have filed an ITR in the previous financial year.
- (b) If yes, the latest assessment year for which assessed: Mention the latest financial year in which you filed the ITR.
- Estimated income for which this declaration is made: Mention the estimated/approximate withdrawal amount that you are expecting.
- Estimated total income of the P.Y. in which income is mentioned in column 16 to be included: Mention the total projected income for the fiscal year in which you intend to withdraw the EPF amount.
- Details of Form No. 15G other than this form filed during the previous year, if any: If you have filed another Form 15G throughout the financial year, include the total number of Form 15Gs submitted as well as the total income amount of all these forms, i.e. sum the amount filed (16) of all the forms.
- Details of income for which the declaration is filed: You must provide the following information:
-Identification no. of relevant investments and accounts
-Nature of income
-Section under which tax is deductible
-Amount of income
Submit Form 15G Online for PF Withdrawal
You can submit form 15G online for EPF withdrawal by following these steps:
-
Visit the EPFO UAN Portal. Log in using the unique UAN and password.
-
Locate the Online Services option and click on Claim.
-
Enter the bank account number and click on verify.
-
Click on Upload Form 15G below the ‘I want to apply…’ option.
Keep all your documents ready and ensure the details entered are correct and valid for a smooth EPF withdrawal process.
When is the TDS Applicable on EPF Withdrawal?
Section 192A of the Finance Act of 2015 states that EPF withdrawals are subject to TDS deduction. If you withdraw your EPF money within five years after contributing, you must pay 10% TDS on the withdrawal amount.
-
If an employee provides their PAN card but not the complete Form 15G/15H, TDS is deducted at a 10% rate.
-
If the employee fails to present their PAN card or Form 15G/15H, TDS is deducted at a rate of 30%.
When is the TDS not Applicable on EPF Withdrawal?
Here are the conditions when TDS is not applicable to EPF withdrawal.
-
When transferring the EPF balance from old employer to a new employer.
-
If the employee is terminated due to illness, discontinuation of the business, completion of the project, or other reasons beyond the control of an employee.
-
If the EPF amount is less than Rs 50,000 and the employee has served for less than 5 years.
-
If an employee withdraws the EPF sum after completing 5 years of service.
-
If an employee withdraws Rs 50,000 or more with less than 5 years of service and files Form 15G/15H with their PAN card.
If you need urgent funds but do not want to touch your EPF account, apply for online finance with Hero FinCorp. You can easily apply on the loan app or website and get instant loans of up to Rs 3 Lakh at competitive interest rates and flexible repayment tenures.
Conclusion
Form 15G for EPF withdrawal is a simple process that might help you avoid needless TDS deductions. Remember to keep up with the newest tax regulations and restrictions since they may change yearly. Following these instructions and meeting the qualifying requirements may make your EPF withdrawal a simple and financially beneficial procedure.
Frequently Asked Questions
1. Who can submit Form 15G?
Your financial year income is less than Rs 2.5 lakh. You are a citizen of India who is less than 60 years old. You have no tax liabilities for the fiscal year. HUFs with yearly incomes under Rs 2.5 lakh are eligible to submit Form 15G.
2. Where can I submit Form 15G?
You can submit Form 15G at the banks where you receive the interest or other authorised financial institutions.
3. Is there any specific format for Form 15G?
Yes, Form 15 G has a specific format. You can download the template from the banks' or EPFO's official website.
4. Is Form 15G mandatory for PF withdrawal of less than Rs. 50,000?
No, tax is already exempted for individuals with incomes less than Rs 50,000.
5. Is there any limit on the total income to submit Form 15G?
Yes, the limit is Rs 2.5 lakh. If you fall within this category, you can bypass tax deductions.
