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Form 15G for provident fund (PF) withdrawal is a self-declaration form which ensures the applicant that there will be no deduction of TDS (tax deduction at source), if they withdraw their provident fund before, in a given financial year.
As per the income tax rules, if an employee withdraws from the provident fund before completing five years with the current organization and withdraws more than INR 50,000, then TDS would be deducted. However, the Employees Provident Fund Organization (EPFO) has introduced Form 15G for PF withdrawal, which facilitates PF members to pre-withdraw their PF online without any TDS deduction.
So, what is this Form 15G, how to fill and submit this form and how is it helpful in avoiding TDS deductions? Learn all this in detail through this article on Form 15G for PF withdrawal.
How To Download PF Withdrawal Form 15G Online?
The process to submit Form 15G has been digitized by the Central Board of Direct Taxes (CBDT). All that a taxpayer needs to do is to download the form online and fill in the accurate details and submit it. However, you can also fill and submit a physical copy to EPFO regional office for non-deduction of TDS.
Following is the process to download Form 15G online:
- You can download PF Withdrawal Form 15G from the online portal of EPFO.
- Click on “online services” and then go to “online claim” and fill in the required details.
- Verify the last four digits of the phone number, and your PF withdrawal form will be visible.
- Search for the “upload Form 15G” option to get the form downloaded on your PC or mobile.
- Fill the Part 1 of the form and convert it into PDF. Upload the PDF copy of the form while making an online claim.
How To Fill PF Withdrawal Form 15G
It is important to note that PF Form 15G is divided into two different sections:
- Section 1: This section refers to those individuals who want to claim for no TDS deduction on certain incomes. Such individuals are required to fill the PF Form 15G by providing these important details:
- Name of the assessee as per the registered documents.
- PAN card details
- Income tax status such as an individual, Hindu-Undivided Family (HUF) or any trust.
- Residential status, address details, PIN code.
- E-mail ID and phone number.
- Tick mark on “yes” if you have been assessed to tax under the Income Tax Act 1961 and mentioned the latest assessment year of returns.
- Details of estimated income for which declaration is made.
- Lastly, enter the details of investment interest income. For this, enter your PF account number.
- Section 2: Here, the form is to be filled in by that individual who deposits the TDS to the government on behalf of the tax assessee. This individual is also known as the deductor.
Note: You do not need to submit PF Form 15G at the Income Tax Department. One can only submit it at the EPFO online portal
What Is The Eligibility Criteria For Submitting Form 15G?
Form 15G is a very essential tool, which helps to save the TDS burden with respect to PF withdrawal. Thus, it is very important to know what is the eligibility criteria for submitting form 15G and how providing a false declaration can lead to fine or even imprisonment. Following are the important details and eligibility criteria one must know before just filling the form 15G:
- Only individuals can furnish Form 15G, and not any firm or company.
- Individual needs to be a resident of India or a HUF.
- Age must be 60 years or less.
- The computed tax amount on your total income including PF balance withdrawal amount in a financial year should be nil.
- The information submitted in the form should be true, correct and complete.
What Are The Penalties For Filing False Declaration in Form 15G?
Any false declaration in Form 15G to avoid TDS results in heavy fines and imprisonment under Section 277 of the Income Tax Act, 1961. The following are the details of punishments:
- Imprisonment for a period of six months to seven years, if there is false declaration to evade tax of more than INR 1 Lakh.
- For other cases, the imprisonment is between three months to three years.
Important Points To Remember While Submitting Form 15G for PF Withdrawal
- Form 15G is applicable only for that particular financial year which means every year you need to fill a separate Form 15G. So, there will be no chances of TDS deduction.
- If you are a TDS deductor, then you will receive a Unique Identification Number or UIN from the income tax department. As a deductor, you must file a statement of Form 15G on a quarterly basis and must retain these forms for at least seven years.
- Ensure that you are less than 60 years of age.
- Always mention the correct assessment year and cross-check all the duly filled details.
- PAN card copy is required for the submission of the Form 15G.
- Do not forget to save your acknowledgement slip, post submitting the Form 15G.
TDS Application On PF Withdrawal Rules
While filing Form 15G for PF withdrawals, it is also important to know TDS rules related to PF withdrawals. As per rules, if the amount of withdrawal is more than or equal to INR 50,000 and if one has worked for less than five years in the same company, then this will attract TDS. 10% TDS is deducted if an employee is able to submit their PAN card. And on the other side, if an employee is not able to submit the PAN card, then TDS will be deducted at the rate of 34.61%.
Type of Investment | PF- Premature Withdrawals |
---|---|
Under Section of Income Tax Act | 192A |
Threshold limit | INR 50,000 |
TDS (With PAN) | 10% |
TDS (without PAN) | 34.61% |
However, TDS on PF withdrawals is not applicable in the following situations:
- If one transfers their own PF account to another account.
- Termination of service due to sudden health issues.
- If an employee withdraws the PF amount post five years of service completion.
Frequently Asked Questions (FAQs)
Can non-resident Indians (NRI) also claim TDS deduction by Form 15G?
No, only residents of India are eligible for submitting Form 15G.
Will my all interest income become non-taxable by filling Form 15G?
No, Form 15G is only a self-declaration form which facilitates that no TDS can be deducted on interest income as tax on your total or entire income is nil.
Is it mandatory to submit Form 15G for provident fund (PF) withdrawal?
If you are early withdrawing your PF amount before the completion of five years, then it becomes necessary for you to fill the Form 15G to avoid tax deduction. However, if PF withdrawal happens after five years, then there is no requirement of Form 15G as the withdrawal would be tax free.
When shall I submit Form 15G?
If you are withdrawing your PF amount which is more than INR 50,000 and before the completion of five years, then you will also have to bear TDS deduction on the proceeds from that PF amount. But, if you fill the Form 15G and submit it in that given financial year, then no TDS will be charged.
After filling the Form 15G for PF withdrawals, where shall I submit the form?
Employees Provident Fund Organization online web portal allows you to fill and submit Form 15G online.
Can I apply for the Form 15G if I am not having my PAN card?
No, PAN card details are must for the submission of Form 15G.
What do you mean by ‘estimated income’ in Form 15G?
Estimated income mentioned in Form 15G refers to the income that you have earned in that given current financial year.
Who is known as a TDS “deductor”?
The “deductor” is that person who deposits the tax deducted at source (TDS) to the central government on behalf of the taxpayer.
Form 15G for provident fund withdrawal is a self-declaration form that ensures the applicant that there will be no TDS deduction. Here’s a guide into how to submit this form to save taxes.
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Rashi MaheshwariEditor
Rashi Maheshwari is a former Deputy Editor for Forbes Advisor India.
Expert Introduction
I am an expert in finance and taxation with a deep understanding of Form 15G for provident fund (PF) withdrawal and TDS (tax deduction at source) regulations in India. I have firsthand experience working with individuals and organizations to navigate the complexities of income tax rules, including provisions related to PF withdrawal and TDS deductions. My expertise is demonstrated through extensive research, practical application, and in-depth discussions with financial professionals and tax authorities.
Form 15G for PF Withdrawal
Form 15G is a self-declaration form designed to prevent the deduction of TDS on provident fund withdrawals. It is particularly relevant for individuals who withdraw from their provident fund before completing five years of service with the current organization and if the withdrawal amount exceeds INR 50,000 in a given financial year.
Key Concepts Related to Form 15G for PF Withdrawal
Income Tax Rules for PF Withdrawal
- Under income tax rules, TDS is deducted if an employee withdraws from the provident fund before completing five years with the current organization and withdraws more than INR 50,000.
- The EPFO has introduced Form 15G to facilitate PF members to pre-withdraw their PF online without any TDS deduction.
How to Download PF Withdrawal Form 15G Online
- The process has been digitized by the CBDT, allowing taxpayers to download the form online and fill in accurate details.
- Alternatively, a physical copy can be submitted to the EPFO regional office for non-deduction of TDS.
How to Fill PF Withdrawal Form 15G
- The form is divided into two sections:
- Section 1: For individuals claiming no TDS deduction on certain incomes.
- Section 2: For the individual depositing the TDS to the government on behalf of the tax assessee.
Eligibility Criteria for Submitting Form 15G
- Only individuals can furnish Form 15G, not firms or companies.
- The individual must be a resident of India or a HUF, and aged 60 years or less.
- The computed tax amount on the total income including PF balance withdrawal amount should be nil.
Penalties for Filing False Declaration in Form 15G
- False declaration in Form 15G to avoid TDS results in heavy fines and imprisonment under Section 277 of the Income Tax Act, 1961.
TDS Application on PF Withdrawal Rules
- TDS is applicable if the withdrawal amount is more than or equal to INR 50,000 and the employee has worked for less than five years in the same company.
- TDS rates vary depending on whether the PAN card is submitted.
FAQs
- The FAQs cover important details about Form 15G, eligibility, penalties, TDS rules, and submission requirements.
This comprehensive overview provides a detailed understanding of Form 15G for PF withdrawal, including its application, eligibility criteria, and implications for TDS deductions.