Provident Fund (PF) or Employee Provident Fund (EPF) is an investment fund that helps you save to meet long-term financial goals. 12% of an employee’s basic salary, plus an equal amount from the employer, goes into the PF as savings. The employee further earns interest on the amount until the maturity date.
Additionally, if the income is below the taxable amount, Form 15G will ensure that no TDS is deducted from the interest earned on the EPF. And so, not only do employees inculcate a healthy habit of saving, but with a Form 15G, they can save on taxes, too, provided they’re eligible. If you want to confirm if you’re eligible and want to know how to download Form 15G, you’re in the right place.
Here, we discuss what Form 15G is and how you can download and fill out Form 15 for PF withdrawal.
When is TDS applicable?
Before we discuss the Form 15G download for PF withdrawal, it’s important to understand when is TDS (tax deducted at source) applicable. TDS is deductible if an employee wishes to withdraw and has an employment tenure of fewer than five years and the PF withdrawal amount exceeds ₹50,000. The following conditions are applicable in such a case.
1. 10% TDS will be applicable if you provide your PAN card but do not fill out Form 15G.
2. 34.608% TDS will be applicable if you fail to provide both a PAN card and Form 15G.
When is TDS not applicable?
Here are situations where you do not have to pay TDS.
1. If you transfer your PF account to another account
2. If the termination of your service happened outside of your control, such as health reasons and the company’s closing
3. If you withdraw the PF amount after five years of employment
4. If the PF amount is below ₹50,000 and the employment tenure is less than five years
5. If you submit Form 15G and PAN card
What is Form 15G?
If an individual’s income is below the taxable limit and their age is under 60, they can save their TDS with Form 15G. Employee Provident Fund Organisation (EPFO) launched Form 15G as an authorisation to state that an individual’s income is below the taxable limit. Hence, the interest they earn is not liable for TDS. Form 15G helps you claim the exemptions on TDS that you are eligible for.
How to download Form 15G
You must fill out Form 15G for withdrawal to save TDS. Central Board of Direct Taxes (CBDT) digitised Form 15G for ease. Form 15G is available online on EPFO’s official website as well as on the websites of all the major banks.
To download Form 15G from the EPFO portal, follow the steps below.
1. Log in or sign up on the EPFO portal.
2. Select “online services” and click “online claim”.
3. Fill out the necessary details.
4. Verify your mobile number.
5. Lastly, search for “upload Form 15G” to download the form on your PC or mobile.
The information on the form must be accurate and complete. Providing false information can lead to fines or even imprisonment.
You can find Form 15G on the official website of the Income Tax Department, or you can fill it out offline. To fill out the form offline, visit the nearest EPFO regional office and submit a physical copy of the form.
What are the eligibility criteria for filling out Form 15G?
It is essential to understand that the approval for a tax deduction, based on Form 15G, is only possible if an individual meets the eligibility criteria. Here are the eligibility criteria to fill out Form 15G.
1. Only individuals can fill out Form 15G.
2. The individual must be an Indian resident.
3. The age of the individual must be 60 or below.
4. The total tax amount on the income plus PF withdrawal should be nil.
How to Fill Form 15G for PF Withdrawal?
- Provide your name, PAN card number, income tax status, and previous year.
- Specify your residential status, address, email address, and phone number.
- Indicate if you have been assessed to tax under the Income Tax Act, 1961.
- Estimate your income for the declaration and the total income of the previous year.
- Provide details of any previous Form 15G filings.
- Specify the details of the investment for which you are filing Form 15G.
In a nutshell
PF is a great way to ensure financial security. Further, you can maximise your savings by filling out Form 15G to save TDS on your PF. It is also important to note that the validity of Form 15G is one financial year. You must fill and submit Form 15G for every financial year or whenever you decide to withdraw your PF before within this limit. Ensure that the details you mention on the form are accurate and up-to-date.
Lastly, if you’re in need of urgent financial assistance, you can turn to us. Tata Capital offers personal loans at attractive interest rates and with quick approvals. This allows you to continue earning interest on your EPF and safeguarding your future without compromising your present.
Visit the Tata Capital website to know more.
04 March 2024
5 mins read
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