PF Withdrawal: How to Download and Fill Form 15G for PF Withdrawal
EPF stands for Employee Provident Fund, a savings scheme mandatory for most employees in India. It is a retirement benefits scheme administered by the Employee Provident Fund Organization (EPFO) and governed by the Employee Provident Fund and Miscellaneous Provisions Act of 1952.
Under this scheme, 12% of an employee’s basic salary and dearness allowance is deducted each month and deposited into the employee’s EPF account, along with a matching contribution from the employer. The amount deposited in the EPF account earns interest and is payable to the employee upon retirement or resignation. According to the Provident Fund (PF) withdrawal rules, this balance can be withdrawn.
What is Form 15G?
Sections 197 and 197A of the I-T Act give specific power to individuals/HUF to specify NIL or lower tax rate deductions on their incomes under specified conditions. According to these sections, the individual can apply for an exemption of TDS deduction on their income if their salary or income is lower than the specified taxation limit.
Here, if you are withdrawing from your PF account, which is more than ₹50,000 and before the completion of five years, then you will have to bear a TDS deduction on the proceeds from that PF amount as explained above. But, if you fill out Form 15G and submit it in that given financial year, no TDS will be charged.
Therefore, Form 15G is an authorised document providing a self-declaration that can be submitted by individuals and Hindu Undivided Families (HUFs) to ensure that no TDS is deducted from the interest that one earns from the EPF in a given year.
Is Form 15G mandatory for PF withdrawal?
Yes, Filling out Form 15G is mandatory if you want to save on TDS. Section 192A of the Income Tax Act 1961 states that a TDS will be applicable if the withdrawal amount is more than Rs. 50,000 or the employment tenure is less than 5 years.
Following are the PF withdrawal rules applicable concerning TDS:
- 10% TDS if you submit your PAN card details but do not submit Form 15G
- 30% TDS if you fail to submit both your PAN card details and Form 15G
- No TDS if you submit Form 15G.
How to download Form 15G?
You can download form 15G through various online sources, such as the websites of major banks in India, the EPFO website, or the Income Tax Department website.
If users prefer offline mode, they can fill out the downloaded form and submit it to the EPFO regional office.
How to Upload Form 15G Online?
Here are the steps you can follow to easily upload your EPF Form 15G online to EPFO Portal:
Step 1: Log in to the EPFO UAN portal, click on the ‘Online Services’ option and select ‘Claim’
Step 2: Now, you need to enter the last 4 digits of your registered bank account for verification
Step 3: Search for the “upload Form 15G” option to obtain the form downloaded on your desktop or mobile.
Step 4: Fill out Part 1 of Form 15G and ensure all the details are accurate, and then convert the completed form into a PDF format. Upload the PDF version of the form to finalise the process.
How to Fill Form 15G?
Form 15G consists of two parts, with the first part being intended for individuals who wish to claim no deduction of TDS on certain incomes.
Note: This instruction for filing Form 15G applies to online and offline modes.
(A) Instructions for Part 1 of Form 15G
To fill out the first segment of Form 15G, follow the below points:
|to be taken care
|Name of the Assessee (Declarant)
|This should be the same as the name on your PAN card.
|PAN of the Assessee
|A valid PAN card is mandatory for filing Form 15G, as the declaration will be considered invalid without it. Only individuals can provide this declaration, not firms or companies.
|Your income tax status as an individual, HUF, or AOP, whichever applies to you
|You must select the previous year as the financial year for which you are claiming the non-deduction of TDS
|Mention your residential status as a resident individual, as NRIs are not allowed to submit Form 15G
|Provide your communication address along with your PIN code.
|Email ID and phone number
|Provide valid contact information for further communication
|Whether assessed to tax under the Income-tax Act, 1961
|You must indicate whether you have been assessed for taxation (filed ITR) under the Income Tax Act of 1961 for any previous assessment years.
|Estimated income for which this declaration is made
|Here, it would help if you mentioned the estimated income for which you are making the declaration.
|Estimated total income of the P.Y. in which income is mentioned in column 16 to be included
|This Point requires the total estimated income for the financial year, including all income.
|Details of Form No. 15G other than this form filed during the previous year, if any
|If you have already filed Form 15G at any time during the financial year, you must provide the details of the previous declaration along with an aggregate income.
|Details of income for which the declaration is filed
|In the final part, you need to provide the investment details for which you are filing the declaration:a) Investment account number: Universal Account Number (UAN)b) Nature of Income: PF Withdrawalc) Section under which tax is deductible: 192Ad) Amount of Income: Withdrawal Amount
In the last step, Complete the form by signing the declaration.
(B) Instructions for Part 2 of Form 15G
The deductor must complete this part and is responsible for depositing the tax deducted at source to the government on behalf of the tax assessee.
TDS on EPF Withdrawal Rules
- Section 192A of the Income Tax Act of 1961 (I-T Act) is a provision that was introduced by the Finance Act of 2015. This section relates to the Tax Deducted at Source (TDS) on the withdrawal of premature accumulated balance from a Recognised Provident Fund (RPF)* due to the employee.
**An RPF is a fund that the Commissioner of Income Tax recognises for the I-T Act, 1961.
- As per Section 192A of the I-T Act, an employee must have completed at least five years of continuous service (subject to exceptions) to be eligible for tax-free withdrawal from the RPF.
- However, when an employee withdraws the accumulated balance from an RPF before the completion of five years of continuous service, the amount withdrawn will be subject to TDS at the rate of 10% at the time of payment since it becomes taxable due to premature withdrawal.
- But no tax deduction is to be made under this section if the amount or aggregate of such payment to the payee is less than ₹50,000. Further, no tax will be deducted if one transfers their PF account to another account. Let’s take an example to understand this better. Let’s say an employee withdraws ₹1 lakh from their Provident Fund account before completing five years of continuous service. In this case, ₹10,000 will be deducted as TDS, and the employee will receive only ₹90,000 as the withdrawal amount. Contrastingly, suppose an employee withdraws ₹40,000 from the Provident Fund account before completing five years of continuous service. In that case, no TDS will be deducted, and the employee will receive the entire withdrawal amount of ₹40,000.
- Further, quoting the Permanent Account Number (PAN) is mandatory. Where the PAN is not furnished, TDS will be deducted 20% instead of the Maximum Marginal Rate (MMR) (Recent amendment in Finance Bill 2023).
Eligibility Criteria for Form 15G
- Only individuals and HUFs can submit Form 15G. Other entities, such as trusts, companies, firms, etc., cannot submit this form.
- The individual should be a resident of India.
- The individual’s age should be below 60 years for the financial year in which the form is submitted.
Note: Senior Citizens above 60 must submit Form 15H for the same benefit.
- The computed tax amount on the total income, including the PF balance withdrawal amount in a financial year, should be nil. This means that the total income of the payee should be less than the basic exemption limit for that year.
- The information submitted in the form should be accurate, correct and complete.
Note: Any false declaration to avoid TDS may result in imprisonment and heavy fines under Section 277 of the I-T Act.
It is important to note that if the above eligibility criteria are not met, then Form 15G cannot be submitted, and in that case, TDS will be deducted from the interest income earned.
Can we submit Form 15G online for PF withdrawal?
Yes, you can download form 15G online from various sources. The list is as follows:
- EPFO Portal,
- Bank Websites, and
- the Income Tax Department website.
To download the form from the EPFO Portal, follow these steps:
- Log in to the EPFO UAN portal.
- Select ‘Online Services’ and click on ‘Claim’
- For verification, enter your bank account number and click on ‘Verify’
Choose ‘Upload Form 15G’ below the ‘I want to apply for’ option
How much amount of PF interest is tax-free?
Interest earned on EPF contributions up to Rs.2.5 lakh annually is tax-free, offering a significant benefit. Yet, any interest exceeding this limit becomes taxable for employees each year.
Understanding the process of downloading and completing Form 15G empowers individuals to minimise TDS on their interest income. However, providing false information on Form 15G to evade TDS can lead to penalties or imprisonment under Section 277 of the Income Tax Act.
When is TDS Applicable on EPF Withdrawal?
When an employee opts to withdraw an EPF amount of Rs.50,000 or more, and their employment tenure is less than five years, the following TDS regulations are applicable:
If the employee provides their PAN card but does not submit Form 15G/15H, 10% TDS will be deducted.
If the employee neither provides their PAN card nor submits Form 15G/15H, TDS will be deducted at a higher rate of 30%.
When is TDS not Applicable on EPF Withdrawal?
In the following cases, no TDS is applicable on PF withdrawal:
When transferring an EPF account to another, TDS does not apply.
TDS is not applicable in cases of service termination due to reasons like ill health, employer business discontinuation, project completion, or other factors beyond the employee’s control.
Withdrawal of EPF funds after completing 5 years of service is exempted from TDS.
If the EPF withdrawal amount is below Rs.50,000, and the employee’s service duration is less than 5 years, TDS is not applicable.
In cases where an employee withdraws Rs.50,000 or more with less than 5 years of service but submits Form 15G/15H along with the PAN Card, TDS is not deducted.
Form 15G is used to declare that an individual’s/HUF (India resident) total income for the year, including the EPF withdrawal amount, is below the taxable limit and the person is below the age of 60 years. By following the process described above, one can reduce the TDS liability.
Frequently Asked Questions (FAQs)
Can I submit Form 15G for partial EPF withdrawals or only for complete withdrawals?
If the eligibility criteria are met, you can submit Form 15G for partial and complete EPF withdrawals.
How many copies of Form 15G must be submitted for EPF withdrawal?
Generally, two copies of Form 15G need to be submitted for EPF withdrawal. The EPF office will retain one copy, and the other copy will be returned to the individual as an acknowledgement.
What is the validity period of Form 15G for EPF withdrawal?
The validity period of Form 15G for EPF withdrawal is one financial year. If you wish to claim exemption from TDS for a subsequent EPF withdrawal during the same financial year, you must submit a fresh Form 15G.
Do I need to submit any documents for EPF withdrawal?
You must submit documents such as the EPF withdrawal form, a cancelled cheque, and your Aadhaar/PAN card to process your EPF withdrawal.
Is filling out form 15G for EPF withdrawal compulsory?
If you are withdrawing early from your PF account before the completion of five years, then it becomes necessary for you to fill out Form 15G to avoid tax deductions. However, if PF withdrawal happens after five years, there is no requirement for Form 15G, as the withdrawal would be tax-free.
What are the eligibility criteria for submitting Form 15G?
Form 15G can be submitted by individuals aged 60 or below, provided their gross tax liability after exemptions are zero. Additionally, their total interest earnings should remain below the exemption limit.
Can HUF submit Form 15G/Form 15H?
Yes, HUFs can submit Form 15G, subject to conditions.
Do I need to submit Form 15G to the income tax department?
You do not have to submit Form 15G to the income tax department. You can submit it to the deductor.