Form 15G Save TDS on PF Withdrawal How to Fill and Download Form 15G
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Form 15G Save TDS on PF Withdrawal, How to Fill and Download Form 15G

Insurance Basics & Financial Advice As the name suggests, Income Tax applies to the income you earn above the predetermined threshold. This also includes the interest income on investments, including fixed deposits. Most forms of your income will attract Tax Deducted at Source or TDS. This is a part of your income deposited as tax before receiving it.

Form 15G - Save TDS on PF Withdrawal, How to Fill & Download Form 15G

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Form 15G

Form 15G

As the name suggests, Income Tax applies to the income you earn above the predetermined threshold. This also includes the interest income on investments, including fixed deposits. Most forms of your income will attract Tax Deducted at Source or TDS. This is a part of your income deposited as tax before receiving it.

However, if you do not fall within the mentioned income tax bracket, banks and financial institutions cannot deduct tax, including TDS. To avoid this, there exists a form called 15G that can be submitted by you to your bank and avoid any TDS on income/withdrawal.

Simply put, Form 15G is a declaration that can be filled out by a bank fixed deposit holder individual less than 60 years of age and a Hindu Undivided Family entity. Proper submission of this document ensures that no TDS (tax deducted at source) is done from your interest income for the financial year.

Under existing income tax norms, banks are mandated to deduct tax at source in case of interest on any fixed deposit, recurring deposit, or any other deposit that crosses Rs 40,000 in a financial year.

Recently, the EPFO Unified portal also launched a facility to submit EPF Form 15G for PF. Form 15G for PF allows the EPF members to withdraw PF online while avoiding TDS, which itself is a great benefit for those withdrawing provident funds and are not within the tax payable threshold.

Where to Get Form 15G?

Downloading Form 15G is easy. Form 15G can be found and downloaded from the websites of all major banks in the country. You can also do Form 15G download from the official EPFO portal.

This form can also be easily downloaded from the Income Tax Department website without much hassle.

How to Fill Form 15G for PF Withdrawal

TDS will apply if your PF withdrawal exceeds Rs 50,000 per financial year. So, to make sure that there is a TDS deduction on your PF withdrawal amount, you need to fill out PF form 15G if your income is lower than the taxable limit.

So how to fill out Form 15G? To fill out Form 15G for PF Withdrawal, you will be able to get it from the Income Tax Website. After filling out the form, you will need to follow the below process:

Once this form is filled, you will need to upload it to the EPFO account. The process to do so:

  • Visit the EPFA UAN Portal
  • Log on to your account by mentioning your UAN number as your user id and your password.
  • Click on Online Services
  • From the dropdown, click on Claim
  • You will be required to verify your identity by mentioning the last 4 digits of your bank account
  • You will see Upload Form 15G under the ‘ I want to apply for’ option.

TDS on EPF Withdrawal Rules

Before knowing how to use form 15G, you will need to know when to use form 15G. To do this, one needs to understand the TDS rules concerning EPF withdrawal in this case.

According to section 192A of the Finance Act, Employee Provident Fund withdrawal attracts TDS if the withdrawal amount is more than Rs 50,000 and they have been employed for less than 5 years. These are two pre-conditions.

As you may know, earlier, the limit of such TDS was capped at more than Rs 30,000 and above withdrawals. The limit was raised to Rs 50,000 from the year 2016.

Note that one can also use Form 15H to claim TDS exemption; however, Form 15G is for those who are below 60 years of age, while Form 15H is for those older than 60 years, i.e., senior citizens.

When is TDS Applicable?

TDS shall apply if your withdrawal amount is more than Rs 50,000 in case of EPF. You can submit Form 15G to avoid TDS payment if your total taxable income for the year will not exceed the maximum exempt limit, i.e., Rs 2.5 lakh for FY 2023-24.

If you, as an individual, earn interest on fixed deposits, banks can deduct TDS before crediting the interest amount to your accounts. But, if the total income does not cross the limit of ₹2.5 lakhs, you as an individual can utilise Form 15G and avoid TDS deduction on interest income even if the interest income amount goes beyond ₹40,000.

In the case of EPF withdrawal, TDS is deducted at 10 percent if an employee submits the PAN card, but the 15G form for EPF/15H is not submitted. TDS deduction will be at the rate of 30% plus surcharge, as applicable and 4% cess if an employee fails to submit the PAN Card and form 15G is not submitted.

When the TDS is not Applicable?

If your interest income amount goes beyond ₹40,000, TDS will be applicable.

Instructions to fill out Form 15G

Note: There are two parts to Form 15G. Part 1 needs to be filled:

  1. Name of the Assessee: This will be the name of the person withdrawing the PF (The Declarant)
  2. PAN of the Assessee: The PAN Number of the Individual filing the Income Tax Return must be mentioned. Do note that companies cannot file this form.
  3. Status: The status mentioned should be individual
  4. Previous Year: The year you plan to claim the non-deduction of TDS
  5. Residential Status: You will need to write resident, as NRI cannot file this form
  6. Numbers 6-12 in the form will be your complete address and PIN Code
  7. Numbers 13-14 will be your email address and telephone number
  8. 15a Whether assessed to tax under the Income-tax Act, 1961: If you have filed income tax returns in the past years, you will need to tick Yes
  9. 15b: If yes, the latest assessment year for which assessed: Mention the year of assessment
  10. Estimated income for this declaration: Write the approximate amount that can be withdrawn
  11. Estimated total income of the P.Y. in which income mentioned in column 16 is to be included: Approximate amount of the income that may be received in the financial year when you want to withdraw your PF
  12. Details of Form No. 15G other than this form filed during the previous year, if any: If you have filled any other Form 15G, you will be required to mention the details here, along with the aggregate income for which the forms were filled.
  13. Details of income for which the declaration is filed: Here, you will mention the details of your PF account as well as the withdrawal details:
    • Identification Number of the Investment: UAN number of your PF account
    • Nature of Income: PF Withdrawal
    • Section under which tax is delectable: Section 192A
    • Amount of Income: The amount which is withdrawn
  14. The declarant will need to sign the form
  15. Followed by this is the verification/declaration, which has to be filled and signed by the assessee.

FAQs on Form 15G

Does Form 15G need to be submitted at all the bank branches?

Yes. One must submit one form 15G at each branch of the bank from which they receive interest income.

Does filing Form 15G mean my interest income is not taxable?

No, just filing Form 15G means that you have declared that your estimated taxable income for the previous year will be less than the maximum exempt limit. However, if your actual taxable income exceeds this threshold, you will need to pay tax on it. So, the mere submission of Form 15G is no guarantee.

Do I need to submit this form to the income tax department?

Form 15G is to be submitted when you file an income tax return. You can use the internet banking facility of major banks to submit Form 15G. Alternatively, you can also submit Form 15G physically at the branches. The EPF body also allows the submission of Form 15G. When done properly, the form is submitted to the Income Tax department.

 

Disclaimer:
Our content given in this article is as per the existing provisions, laws and regulations as per the Income Tax Act, 1961 and Income Tax Rules, 1962 issued thereunder. Tax laws are subject to amendments made thereto from time to time. The benefits / guidance mentioned herewith should not be considered as opinion / view of the Company. We request to seek independent view from your personal tax advisor on applicable tax benefits / guidance under the said article.

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