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Form 15G: Learn How to Download and Fill Form 15G for PF Withdrawal
Employee Provident Fund (EPF) is a fund meant for employee welfare. Every month, 12% of the employee’s basic salary and dearness allowance is contributed to this fund account. Besides the employee, the employer also contributes an equal amount in EPF. An employee can withdraw this PF balance according to the PF withdrawal rules. If the amount withdrawn exceeds Rs. 50,000 in a year, the government deducts TDS (Tax Deducted at Source) under section 192A of the Income Tax Act. It means you will receive only the balance amount after deduction on withdrawal. However, you can avoid this TDS deduction by filling out Form 15G if your income is less than the taxable limit. In this guide, we will share an overview of Form 15G.
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What is Form 15G for PF Withdrawal?
Form 15G or EPF People file Form 15G to make sure that no TDS is withheld from interest earned on their RD, FD, or EPF. Hindu Undivided Families (HUFs) and persons under 60 years of age may complete this form. Form 15H is a distinct form that is used for those 60 years of age and older.
Online PF withdrawal is now possible for EPF members thanks to a new feature introduced by the EPFO Unified portal: the ability to submit EPF Form 15G. Furthermore, and this is a huge plus, you can prevent TDS.
Features of Form 15G
Here are the essential features of Form 15G:
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It is a self-declaration form required for the non-deduction of TDS for taxpayers whose income is below the exemption limit.
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The rules and regulations of this self-declaration form come under Section 197A provision of the Income Tax Act.
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Several changes have been made to Form 15G since 2015 to ease the cost and compliance burden of deductees and deductors.
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To claim the benefit through Form 15G, you have to submit it in the first quarter of any financial year for any existing undertakings. The form should be submitted before investment attracts first-time interest for new undertakings.
Is Form 15G Mandatory for PF Withdrawal?
Form 15G is mandatory if you want to avoid deduction from the PF withdrawal amount. According to Section 192A of the Finance Act 2015, PF withdrawal attracts TDS if the withdrawal amount exceeds Rs.50,000, and your employment tenure is less than 5 years. The following PF withdrawal rules are applicable:
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10% TDS for those submitting PAN cards but failing to submit Form 15G
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30% TDS for those failing to submit PAN card and Form 15G
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No TDS for those submitting Form 15G
Form 15G Sample
How to Download Form 15G for PF Withdrawal?
The official EPFO webpage and the websites of all the major Indian banks make it simple to locate and download Form 15G for free. This form is also readily available for download on the Income Tax Department website. Additionally, the majority of India's largest banks' websites allow you to electronically submit Form 15G. To download PF Form 15G to your computer or smartphone, just log in and search for it. You can also see the same information on the official website of the IT Department.
Steps for Form 15G Download
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Access the online portal EPFO (or the website of your bank)
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Tap on the online services, click on the online claim, and tap on the required information
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Verify the last 4 digits of your phone number
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Your PF withdrawal form will be visible
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Look for the “upload Form 15G” option to download it on your PC or mobile
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Fill the Part 1 of Form 15G and convert it into a PDF
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Upload the PDF copy while making an online claim
How to Fill Form 15G for PF Withdrawal?
You will have to fill out Part 1 of Form 15G for withdrawing your PF. The following fields will have to be filled to complete the form:
Name of the Assessee (Declarant):
Name of the assessee as per the PAN Card
PAN:
PAN of the assessee.
Status:
Your applicable income tax status
Previous Year:
Select the financial year in which you want to claim the non-deduction of TDS
Residential Status:
Mention ‘Resident’ because NRI is not allowed to submit Form 15G
Address:
Write your address along with your PIN code, preferably the one mentioned in your Aadhaar card
Email ID and phone number:
Give a valid email ID and your contact number
Whether assessed to tax under the Income-tax Act:
Tick in the ‘’Yes’’ box if filing an ITR during the last few years. If yes, mention the assessment year from the latest ITR.
Estimated income for this declaration:
Mention the estimated withdrawal amount
Estimated total income of the year in which income in column 16 is to be included:
Mention the total estimated income of the financial year when you plan to withdraw the PF.
Details of Form No. 15G filed during the previous year, if any:
Total number of Form 15Gs filled and the total income amount of all these forms if any
Total number of Form 15Gs filled and the total income amount of all these forms if any:
Total number of Form 15Gs filled and the total income amount of all these forms if any
Details of income:
Mention details like investment identification number, nature of income, amount of income, and section under which tax is deductible
Remember to cross-check all the details after filling in all the fields to ensure there is no error. While Form 15G is greatly helpful in saving the TDS burden, providing a false declaration for the purpose of avoiding TDS can have dire outcomes. It can lead to a hefty penalty and even imprisonment under Section 277 of the IT Act. The deductor has to fill out a second part of the form while depositing the tax deducted at the source to the government.
How Much PF Interest Amount is Tax-Free?
Taxes do not apply to interest earned on EPF contributions up to Rs. 2.5 lakh annually. Any interest amount on contributions beyond this threshold will be levied from the employee on a yearly basis.
You can reduce the amount of TDS deducted from your interest income now that you know how to download and complete Form 15G. However, under Section 277 of the Income Tax Act, people face fines or jail time if they file a fake Form 15G in order to evade tax deduction at source.
TDS Deductions on PF Withdrawal
When filing Form 15G for the withdrawals of the PF, you must know the TDS rules concerning the PF withdrawals. When an employee wants to withdraw an EPF amount exceeding Rs.50,000 and has worked for less than 5 years, the following rules will apply:
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TDS is deducted at a rate of 10% if the individual submits their PAN card but does not submit Form 15G/15H
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TDS will be deducted at a higher rate of 30% if the employee fails to submit their PAN card and Form 15G/15H
Conversely, TDS on EPF withdrawals will not be applicable in the following cases:
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Transferring an EPF account to another account
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Termination of service due to ill health, completion of a project, discontinuation of business by an employer, or other causes beyond the control of the employee
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Withdrawal of the EPF amount after completing 5 years of service
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EPF amount is less than Rs.50,000, and the employee has worked for less than 5 years
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Withdrawal of Rs.50,000 or more with less than 5 years of service but submission of Form 15G/15H along with PAN Card
TDS Claims if an Assessee Forgets to Submit
TDS will be deducted if an assessee forgets to submit form 15G on time. However, they can reclaim the deducted amount in these ways:
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Banks must mandatorily submit to the IT Department, so it is not possible to retrieve the amount. An assessee must file and submit an ITR claim which will be verified, following which the amount is returned.
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Since banks deduct the TDS amount at the end of each quarter when the interests are added to accounts, one needs to submit form 15G immediately to prevent further deductions.
Conclusion
Form 15G is a savior for PF account holders as it enables them to avoid TDS if applicable. However, a false declaration to evade taxes may result in penalties and imprisonment under Section 277 of the IT Act, 1961. Therefore, it is crucial to provide accurate details when filling out the form for tax-saving purposes.
Frequently asked questions
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Is Form 15G mandatory?
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Form 15G is an official form under Section 197A of the IT Act. It is a self-declaration form to be filled by an individual claiming exemption from TDS for PF withdrawal, interest on fixed deposits, etc. It is mandatory if you don't want a TDS deduction from the PF withdrawal amount. It applies to cases where the withdrawal amount exceeds Rs.50,000 and the employment tenure is of less than 5 years.
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Is there a verification process?
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Since Form 15G is self-declaratory in nature, it is subjected to verification for determining exemption. False information can lead to penal measures like fines and imprisonment.
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Is it possible to submit Form 15G online?
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The Central Board of Direct Taxes allows Form 15G to be downloaded online and filled through the websites of all major banks in India and EPFO.
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How long is a self-declaration form valid?
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Form 15G is valid for the specific financial year in which the self-declaration is submitted. A fresh one is needed every year. According to the current rules, deductors can retain this form for 7 years.
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What is the penalty for submission of a false declaration Form 15G?
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A false declaration of Form 15G might lead to imprisonment and a fine. The tenure of imprisonment can be 6 months to 7 years for evading a tax exceeding Rs 1 lakh. It can be up to 3 years in other cases.
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What are the eligibility criteria for submitting Form 15G?
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An individual must be 60 years or older to be eligible for submitting Form 15G. Additionally, their gross tax liability following exemptions should be zero and total earnings from interest must not exceed the exemption limit.
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Is a PAN card mandatory for filing Form 15G?
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Yes, a PAN card is mandatory for filing Form 15G. A declaration will become invalid without proper PAN details.
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Who has to fill out Part 2 of Form 15G?
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The deductor fills out the second part of Form 15G.
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When should a person submit Form 15G for PF withdrawal?
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An assessee should submit Form 15G at the time of submitting the PF withdrawal claim form. In other cases, they must submit it at the beginning of every financial year. It ensures no tax deduction at source from interest earnings.
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How much PF interest is tax-free?
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Interest on EPF of up to Rs.2.5 lakh annually is tax-free. Any interest amount on contributions beyond this threshold will bear an annual tax.
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What is the difference between Form 15G and Form 15H?
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The distinctions between Forms 15G and 15H are fundamental and significant in two ways. Individuals under the age of sixty-one, HUFs (Hindu Undivided Families), and trusts may all file Form 15G. However, 15H cannot be filed by any organisation; rather, it can only be filed by a senior citizen individual tax assessee.
Prachi Jain
Chartered Accountant
Prachi Jain is a Chartered Accountant with a passion for simplifying finance and tax-related matters through her insightful and informative blogs. With a background in finance and a deep understanding of tax regulations, Prachi has established herself as a trusted source of financial wisdom. Prachi is committed to empowering her readers with the knowledge they need to make informed financial decisions. Her expertise and dedication shine through in every blog post, helping her audience navigate the intricacies of finance and taxes with confidence. Follow Prachi Jain's blog for practical insights and guidance on managing your finances effectively.
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