Form 15G is like a declaration form you give to banks or financial places when you don’t earn enough to pay taxes. If your yearly income is under Rs. 2.5 lakhs, this form helps you avoid TDS (tax deducted) when taking money out of your PF account. It’s a way to tell them you don’t owe tax on that money, so they don’t take any from you when you withdraw it.
Form 15G is a form that certain individuals (below 60 years old and families) can fill if they have fixed deposits. It helps them avoid having tax taken from their interest earnings.
EPFO now allows Form 15G for EPF withdrawals! This means you can get your PF online and skip the TDS.
What is Form 15G?
Form 15G for PF withdrawal is like a promise made by the person withdrawing their provident fund. It’s their way of saying, “Please don’t deduct any tax (TDS) when I take out my PF money before the end of this financial year.”
Normally, if someone leaves a job before 5 years and withdraws over Rs 50,000 from their PF, tax gets deducted (TDS). But the EPFO now allows Form 15G for PF withdrawals. This lets PF members withdraw online without any TDS deduction, making it simpler.
So, Form 15G for PF withdrawal is a declaration. It helps avoid TDS deductions when taking out PF money early. The process for filling and submitting this form eases the withdrawal without tax deductions, making it more convenient for PF members.
Form 15G Requirement for PF Withdrawal and TDS Rules
Form 15G is essential if you wish to avoid TDS deductions. As per Section 192A of the Finance Act 2015, TDS applies to PF withdrawals exceeding Rs. 50,000 before completing 5 years of employment.
Here’s a breakdown of the rules:
- If you provide your PAN but don’t submit Form 15G, a 10% TDS is applicable.
- If you fail to submit both your PAN and Form 15G, a 30% TDS is deducted.
- However, submitting Form 15G ensures no TDS deduction on your PF withdrawal.
Fillable Form 15G and 15H PDF and Excel – Download
How to Download Form 15G?
To download Form 15G for EPF withdrawal, you can visit major Indian bank websites, the Income Tax Department’s website, or the EPFO website. Once there, log in and search for “PF Form 15G.” Download the form to your computer or smartphone for filling and submission. Here are the links to download Form 15G.
From Income Tax Official Website – Download Here
How to Fill Form 15G?
Form 15G has two sections. The first part is for individuals aiming to avoid TDS on specific incomes. Here’s what to fill in the first segment:
1. Name and PAN: Enter your name as on the PAN card and your valid PAN details. Without a valid PAN, your declaration won’t be accepted. Only individuals, not firms or companies, can use Form 15G.
2. Tax Status and Previous Year: Indicate your tax status (Individual/HUF/AOP) and choose the previous year for which you’re claiming the non-TDS deduction.
3. Residential Status: State your residential status as a resident individual; NRIs can’t submit Form 15G.
4. Address, Email, and Phone: Provide accurate contact details for communication.
5. Tax Assessment Information: Declare if you’ve been assessed under the Income Tax Act for previous years and state the latest assessment year.
6. Estimated Income: “Estimated income for which this declaration is made,” mention the anticipated withdrawal amount from your PF.
Estimated total income of the P.Y. in which income is mentioned in column 16 to be included,” indicate your total anticipated income for the financial year in which you intend to withdraw the PF amount.
7. Previous Form 15G Details: If you filed this form earlier in the financial year, note those details and the aggregate income.
8. Declared Income Details: Specify the investment account number or other investment details for which you’re filing the declaration.
Be meticulous while filling in the details and double-check for accuracy. Submitting a false declaration to avoid TDS can lead to penalties or imprisonment under Section 277 of the Income Tax Act.
Remember, there’s a second part of the form for the deductor, who deposits the deducted tax to the government on behalf of the taxpayer.
FAQ on Form 15G for EPF Withdrawal
Is Form 15G necessary for PF withdrawals below Rs. 50,000, and what role does it play in cases where TDS isn’t applicable?
If your PF withdrawal is less than Rs. 50,000 and you satisfy the criteria where TDS is not applicable (like having worked for more than five years), submitting Form 15G isn’t mandatory. However, if you fall under the TDS applicability criteria but wish to avoid TDS deduction, submitting Form 15G can help prevent it, even for withdrawals under Rs. 50,000.
When does TDS apply to EPF withdrawals?
TDS (Tax Deducted at Source) is applicable on EPF (Employee Provident Fund) withdrawals when:
- Withdrawal before 5 years: If an employee withdraws from their EPF account before completing 5 years of continuous service.
- Withdrawal exceeding Rs. 50,000: When the EPF withdrawal amount exceeds Rs. 50,000 before completing 5 years of continuous service.
However, TDS doesn’t apply if the withdrawal is after 5 years of continuous service, regardless of the withdrawal amount.
Q: What is Form 15G?
A: Form 15G is a self-declaration form for individuals to declare that their income is below the taxable limit and hence, they are not liable for TDS deduction on certain incomes.
Q: Who can submit Form 15G?
A: Individuals below 60 years of age can submit Form 15G if their total income is below the taxable limit for the assessment year.
Q: Can senior citizens use Form 15G?
A: No, senior citizens (above 60 years) should use Form 15H instead of Form 15G to claim exemption from TDS.
Q: When should Form 15G be submitted?
A: Form 15G should be submitted at the start of the financial year in which income is earned to prevent TDS deduction on various incomes.
Q: Is PAN mandatory for submitting Form 15G?
A: Yes, a valid PAN is mandatory for submitting Form 15G. Without a PAN, the form is considered invalid.
Q: Can Form 15G be submitted for EPF withdrawals?
A: Yes, Form 15G can be submitted to avoid TDS deduction on EPF withdrawals if the income falls below the taxable limit. However, it’s subject to certain conditions like the withdrawal amount and tenure of employment.