PDF Guide to Form 15G for PF Withdrawal

Form 15G PDF

Form 15G for provident fund (PF) withdrawal is a self-declaration form that guarantees no TDS (tax deduction at source) will be deducted if an applicant withdraws their provident fund before the end of the financial year. Under income tax regulations, withdrawing from the PF before completing five years with the current organization and withdrawing over INR 50,000 would result in TDS deduction. However, the Employees Provident Fund Organization (EPFO) has introduced Form 15G for PF withdrawal, enabling PF members to pre-withdraw their funds online without any TDS deduction. Discover the purpose and procedure of Form 15G, along with its significance in avoiding TDS deductions, by exploring our detailed article on Form 15G for PF withdrawal.

How can I download Form 15G for PF withdrawal online?

Digital Submission of Form 15G for Non-Deduction of TDS

The Central Board of Direct Taxes (CBDT) has streamlined the process of submitting Form 15G through digital means. Taxpayers can conveniently download the form online, provide accurate information, and submit it electronically. Alternatively, a physical copy can be filled and submitted to the EPFO regional office to ensure non-deduction of TDS.

To download Form 15G online, follow these steps:

  1. Access the EPFO’s online portal for PF withdrawal.
  2. Navigate to “online services” and select “online claim” to enter the required details.
  3. Verify the last four digits of your phone number to view the PF withdrawal form.
  4. Locate the “upload Form 15G” option to download the form onto your computer or mobile device.
  5. Complete Part 1 of the form and convert it to PDF format. Attach the PDF copy when making an online claim.

By embracing the digital process, taxpayers can conveniently submit Form 15G and ensure TDS non-deduction.

How To Fill PF Withdrawal Form 15G

PF Withdrawal Form 15G-It is essential to understand that PF Form 15G is categorized into two distinct sections, each catering to different requirements:

  • Section 1: This section is intended for individuals seeking non-deduction of TDS on specific incomes. To complete PF Form 15G in this section, the following crucial information must be provided:
    • Assessee’s name, as per registered documents.
    • PAN card details.
    • Income tax status, including individual, Hindu-Undivided Family (HUF), or trust.
    • Residential status, address details, and PIN code.
    • E-mail ID and phone number.
    • Tick the box indicating whether you have been assessed for tax under the Income Tax Act 1961, and mention the latest assessment year of returns.
    • Details of the estimated income for which the declaration is being made.
    • Lastly, enter the investment interest income details, including your PF account number.
  • Section 2: This section is to be completed by the individual responsible for depositing TDS on behalf of the tax assessee, also known as the deductor.
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Important Note: PF Form 15G does not need to be submitted to the Income Tax Department. It can only be submitted through the EPFO online portal.

Understanding the sections and providing accurate details in PF Form 15G ensures compliance with TDS requirements and facilitates a smooth submission process.

What are the eligibility requirements for submitting Form 15G?

Form 15G holds significant importance as a tool to alleviate the TDS burden associated with PF withdrawal. It is crucial to be well-informed about the eligibility criteria for submitting Form 15G and the consequences of providing false declarations, which may result in fines or even imprisonment. Here are the essential details and eligibility criteria to consider before completing Form 15G:

  1. Only individuals are eligible to furnish Form 15G; firms or companies are excluded.
  2. The individual must be a resident of India or a Hindu Undivided Family (HUF).
  3. The age of the individual should be 60 years or less.
  4. The computed tax amount on the individual’s total income, including the PF balance withdrawal amount, in a financial year should be nil.
  5. It is imperative that the information provided in the form is true, accurate, and complete.

By understanding and fulfilling the eligibility criteria, individuals can effectively utilize Form 15G to mitigate TDS liabilities associated with PF withdrawal. It is essential to adhere to the guidelines and ensure the accuracy of information provided to maintain compliance with tax regulations.

What penalties can be incurred for making false declarations on Form 15G?  

It is crucial to understand the severe consequences associated with providing false declarations in Form 15G to evade TDS (Tax Deducted at Source). Such actions are strictly dealt with under Section 277 of the Income Tax Act, 1961. The penalties for false declarations are as follows:

  • False declaration to evade tax exceeding INR 1 Lakh:
    • Imprisonment for a period of six months to seven years.
  • False declaration in other cases:
    • Imprisonment ranging from three months to three years.
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These penalties are imposed to deter individuals from intentionally providing false information to avoid TDS obligations. It is essential to adhere to the legal provisions and provide accurate and truthful details in Form 15G to maintain compliance with tax regulations and avoid the severe penalties outlined by the Income Tax Act, 1961.

Important Points To Remember While Submitting Form 15G for PF Withdrawal

When it comes to Form 15G, it is essential to follow certain guidelines to ensure TDS deduction is avoided. Here are some important points to consider:

  • Yearly Submission: Form 15G needs to be filled out separately for each financial year. This ensures that TDS deduction is not applicable.
  • Unique Identification Number (UIN): If you are a TDS deductor, the income tax department will provide you with a UIN. As a deductor, it is your responsibility to file quarterly statements of Form 15G and retain these forms for a minimum of seven years.
  • Age Criteria: Ensure that you are below 60 years of age to be eligible for Form 15G submission.
  • Accurate Assessment Year: Always mention the correct assessment year and thoroughly verify all the filled-in details to ensure accuracy.
  • PAN Card Copy: Submission of Form 15G requires a copy of your PAN card for identification purposes.
  • Retain Acknowledgement Slip: After submitting Form 15G, make sure to save the acknowledgement slip for future reference.

Adhering to these guidelines will help you properly submit Form 15G, ensuring TDS deduction is avoided as per the applicable regulations.

TDS Application On PF Withdrawal Rules

When it comes to filing Form 15G for PF withdrawals, it is crucial to be aware of the TDS rules associated with such withdrawals. As per the rules, the following scenarios attract TDS:

  1. Withdrawal Amount and Duration of Employment: If the withdrawal amount equals or exceeds INR 50,000 and an employee has worked for less than five years in the same company, TDS will be applicable.
  2. TDS Deduction Rates: If an employee provides their PAN card details, a TDS of 10% will be deducted. However, in the absence of a PAN card submission, TDS will be deducted at a rate of 34.61%.
Investment Type: PFPremature Withdrawals
Section of the Income Tax Act192A
Threshold LimitINR 50,000
TDS Rate (With PAN)10%
TDS Rate (without PAN)34.61%

It is important to note that TDS on PF withdrawals does not apply in the following situations:

  1. PF Account Transfer: When an individual transfers their PF account to another account, TDS is not applicable.
  2. Termination due to Health Issues: In cases where an employee’s service is terminated due to unforeseen health issues, TDS on PF withdrawals does not apply.
  3. Withdrawal after Five Years: If an employee withdraws their PF amount after completing a service tenure of five years, TDS will not be deducted.
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By understanding these TDS rules related to PF withdrawals, individuals can make informed decisions and ensure compliance with the applicable regulations.

Frequently Asked Questions (FAQs)

Is it possible for non-resident Indians (NRIs) to avail TDS deduction through Form 15G?

No, Form 15G can only be submitted by residents of India.

If I fill out Form 15G, will all of my interest income become tax-free?

No, Form 15G is simply a self-declaration form that ensures no TDS deduction on interest income. It indicates that your total income tax liability is nil.

Do I have to submit Form 15G when withdrawing my provident fund (PF)?

If you are withdrawing your PF amount prematurely, before completing five years, it is mandatory to submit Form 15G in order to avoid tax deduction. However, if the PF withdrawal occurs after five years, there is no need for Form 15G as the withdrawal would be tax-free.

When should I submit Form 15G?

If you plan to withdraw an amount of PF that exceeds INR 50,000 and haven’t completed five years of service, TDS deduction will be applicable on the withdrawal. However, if you fill out and submit Form 15G in the same financial year, no TDS will be charged.

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