According to section 192A of the Income Tax Act, Tax Deducted at Source (TDS) will be deducted if the withdrawal amount exceeds Rs 50,000 and the employment tenure is less than 5 years.
Employee Provident Fund (PF or EPF) is a fund that is meant for the welfare of the employees where 12% of the employee’s basic salary is transferred to their provident fund account every month. PF balance can be withdrawn as per the PF withdrawal rules. According to section 192A of the Income Tax Act, Tax Deducted at Source (TDS) will be deducted if the withdrawal amount exceeds Rs 50,000 and the employment tenure is less than 5 years. To avoid TDS deductions, an individual has to fill out Form 15G and he/ she can avoid the deductions if their income is below the taxable limit.
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PF Withdrawal: What is Form 15G?
Form 15G is an authorized document that will make sure that there is no TDS deduction on the amount of interest you receive on PF or EPF. This declaration is mandatory for all individuals and HUFs (Hindu Undivided Families) below 60 years.
PF Withdrawal: How to download Form 15G?
EPF Form 15G or Form 15G can be downloaded from the following sites-
Websites of all the major banks in India
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EPFO website
One needs to visit any of these websites, log in, and search for PF Form 15G. The form has to be downloaded on computer or smartphone.
PF Withdrawal: How to fill the Form 15G?
There are various fields that need to be filled. Here is step-by-step guide-
1. Enter the name of the Assessee as per the name on the PAN card in Field 1 (Name of the Assessee).
2. Enter the Pan card number in Field 2 (PAN of the Assessee). The absence of a PAN card can render Assessee’s declaration as invalid.
3. Fill in the individual’s income tax status which should be individual or HUF in Field 3 (Status).
4. In Field 4 (Previous year), ensure to select the financial year for which you are claiming the non-deduction of TDS.
5. Mention ‘Resident’ in Field 5 (Residential Status) as NRIs are not allowed to submit Form 15G.
6. In Fields, 6-12 (Address), enter the communication address along with the Pin code.
7. Enter your e-mail address and contact details in Fields 13-14 (Email ID and contact details).
8. Select the Yes option if you filed for ITR in any of the previous years, and mention the assessment year from the latest ITR in Field 15.
9. In Field 16, state the estimated withdrawal amount for which the declaration is made.
10. In Field 17, mention the total estimated income of the financial year in which you have planned to withdraw the PF amount.
11. If you have filled the Form 15G earlier, fill in those details in Field 18.
12. In Field 19, you need to provide the following details-
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-Investment Identification Number
-Nature of Income
-Amount of Income
-Section under which tax is deductible
Go through all the details you filled in once to ensure there are no mistakes.
You can submit the form to the bank branch from which you receive your interest income.
Accurate details need to be provided as false declaration may lead to penalties and imprisonment under Section 277 of the Income Tax Act, 1961.
