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Introduction:

The Employees Provident Fund has contributions of 12% per month from employees and employers. Withdrawals are subject to PF rules, TDS is applied if withdrawals exceed Rs. 50,000 per annum under Section 192A of the Income Tax Act.

However, if your income falls below the taxable limit, you can ensure that no TDS is deducted on your PF withdrawals by filing Form 15G. Keep reading for more on this topic.

Form 15G:

Form 15G, also known as EPF Form 15 G, is a document submitted to prevent TDS deduction on the interest earned from EPF, RD, or FD. Individuals below 60 years of age and Hindu Undivided Families (HUFs) can fill out this form. Individuals aged 60 years and above are required to use a different form, Form 15H.

The EPFO ​​Unified Portal recently introduced a facility that enables EPF members to submit EPF Form 15 G online for withdrawal of PF, making it easier to access PF Not only does this facilitate the withdrawal process but also it also provides great benefits in deducting TDS.

Form 15G Specifications : 

• The primary features of Form 15 G are:
• The rules and instructions contained in this self-declaration form are based on Section 197A of the Income Tax Act, 1961 .
• The current format for Form 15G and Form 15H was established by the Central Board of Direct Taxes (CBDT).
• Form 15G should be submitted in the first quarter of any financial year to qualify for the benefit, especially if there are existing commitments. For new ventures, this form must be submitted before an investment gains attention for the first time.
• Taxpayers under 60 can use Form 15G, while those over 60 must complete Form 15H, which is virtually identical to Form 15G. Only senior citizens are eligible to use Form 15H.
• If the taxpayer’s annual income falls below the exemption limit, they must submit this self-declaration form.

Steps to Download Form 15G for the  PF Withdrawal:

• Form 15 G is available for free download from the websites of major banks in India as well as through the official EPFO ​​channel. Also, it is easily available from the website of the Income Tax Department. Moreover, many leading banks in India provide online access for filing Form 15G on their websites.
• Moreover, you can also visit the official website of the Income Tax Department.
• Just log in and search for “PF Form 15 G download”, and you can save it to your computer or smartphone.
• Importance of Form 15G for PF Withdrawal:
• Form 15G is required to avoid deduction of TDS on PF withdrawals. As per Section 192A of the Finance Act 2015, TDS will be applicable on PF withdrawals exceeding Rs. 50,000 if your tenure is less than 5 years.
• Taking into account the aforementioned conditions, the following are the applicable PF withdrawal rule
• 10% TDS applies if you submit your PAN card but fail to submit Form 15G; 20% TDS applies if you fail to submit both your PAN card and Form 15G. However, no TDS is applicable if you submit Form 15G.

Parts of the 15G Form for PF:

• 1-Name of the declarant
• 2-The tax assessee’s PAN (Permanent Account Number) is required. The declaration is considered void if a valid PAN is not provided.
• 3-An individual may provide a status declaration (excluding companies or firms).
• 4-The fiscal year to which the relevant money pertains.
• 5-Residential status, whether as a resident Indian or non-resident alien.
• 6-14 Address and phone number
• 15(a) If any assessment is liable to taxation under the provisions of the Income-tax Act of 1961, please respond ‘Yes’ to that question. Year out of the six assessment years preceding the year of filing the declaration.
• 15(b) Indicate the latest assessment year for which a tax return was filed and processed.
• 16 – The anticipated income disclosed herein. (Enter the EPF withdrawal amount you anticipate receiving. Only include the contributions made by the employee and employer; exclude the EPS and Pension amounts.)
• 17 – Estimated total income for the current fiscal year, encompassing the income specified in 16.
• 18 – You must disclose the total number of Form No. 15G filings, along with the entire amount of income for which such declaration(s) have been submitted, if any Form No. 15G declarations are filed before submitting the new declaration within the Financial Year.
• 19 –Provide the unique numbers for shares, term deposit and recurring deposit accounts, National Savings Scheme, life insurance policies, employee codes, etc.

Steps to Fill Form 15G for Withdrawal:

• Let’s proceed and learn how to complete Form 15G for online EPF withdrawal.
• Visit the EPFO ​​UAN Unified Portal for members.
• Click on  “Online Services” option.
• Verify  last 4 digits of the bank account.
• You only need to complete Part I of Form 15G for PF withdrawal. Follow these instructions to fill in the remaining fields of Form 15G:
• Name must match the one on your PAN Card.
• Only individuals can submit Form 15G and not any company or company. Enter your valid PAN card number and ensure that the fourth letter of the PAN card number is ‘P’; Otherwise, your declaration will be considered invalid.
• Your relevant income tax situation ie. individuals in this case.
• You need to select the financial year for which you are claiming non-deduction of TDS.
• Indicate “Resident” as your residential status, as NRIs are not allowed to file Form 15G.
• Please provide your address, preferably the one listed on your Aadhaar card, along with your PIN code.
• Please provide a valid email ID and your contact number for further communication.
• If you have filed Income Tax Return (ITR) in any of the previous years, check the “Yes” box.
• In this field, indicate the estimated withdrawal amount.
• Specify the total estimated income for the financial year in which you intend to withdraw the PF amount.
• f you have submitted another Form 15G at any time during the financial year, please indicate the total number of Form 15Gs filled out and the total income amount from all these forms. This involves summing up the amount in field (16) from all the forms submitted.
• In the final section, you are required to provide the following income details:
• Investor Number, . Nature of income, . The tax deduction part, too The amount of money earned
• Complete all the fields and double-check all the details to make sure there are no errors.

Conclusion:

Form 15G helps PF account holders avoid TDS if applicable, but false declaration can lead to fine and imprisonment under Section 277 of the Income Tax Act. To save tax, fill up the form and provide specific information.