There are many ways to save on tax. One of the most common ways is to fill out the FORM 15G. FORM 15G is a declaration that is ideally filled out by those who hold fixed deposits and are less than 60 years of age and belong to the Hindi United Family. It is filled with the sole purpose to ensure that no TDS or Tax Deducted at Source is deducted from the income for a year.
As per the rules, the banks are liable to deduct the said tax or TDS on the fixed deposits, recurring deposits et al. if the interest earned through these deposits are more than INR 10000 annually.
In a recent development, EPFO had announced that one can submit the EPF form 15G through a newly started online facility, which will allow the members of EPF to withdraw Provident Fund or PF online. One can also avoid paying TDS which is of great benefit.
But before that,we need to know where to find the form and how to fill it up.
Table of Contents
Where to find the FORM 15G?
FORM 15G can be found quite easily on the website of all banks. It can also be download from the same websites, free of cost. One can also have a look at the form on the EPFO portal. The procedure of downloading the form is similar everywhere.
Search for it and click on it. Download the PDF version. Additionally, one can also visit the Income Tax website and search for the same. It can be downloaded from the same free of cost.
What is The TDS on EPF Withdrawal Rules?
Section 192 A of the Finance Act of 2015 states that EPF withdrawal will attract a TDS if the amount is INR 50000 or more and the tenure of the professional is less than 5 years. Earlier the withdrawal amount was INR 30000 and above.
However, at the 2016 Budget, it was amended. One can also make use of Form 15H. However, there is a difference between the forms. FORM 15G is for those under the age of 60 years while FORM 15H is for those above 60 years of age.
Eligibility for a TDS
It is essential to know the eligibility criteria for a TDS.
There are two circumstances under which the TDS is deducted:
- On the submission of the PAN card, there will be a deduction of 10%. In this case, the FORM 15G has not been submitted.
- If the PAN card has not been submitted, then 34.608% will be deducted. In this case, too, FORM 15G has not been submitted.
Conditions Under Which the TDS is Not Applicable
- When there is a transfer of the EPF account to another
- The employee has been terminated for reasons beyond his or her control, like ill-health, stoppage of business, completion of project etc.
- If the EPF has been withdrawn after 5 years of service, which will include service with the current employer.
- If the amount is withdrawn is less than INR 50000 but the tenure of service is less than 5 years.
- If the amount is withdrawn is more than INR 50000 or equal to it but both PAN card and FORM 15G has been submitted.
How to Fill up FORM 15G?
Filling up the FORM 15G is quite a user friendly.
Here are the steps:
- Log in to EPFO UAN Portals for members
- Online Services option for claim (Form 31, 19, 10C)
- Verification of the last four digits of the bank account number is mandatory
- Click on the FORM 15G below the option “I want to apply for”
Instructions to fill out the FORM 15G:
- Name of the Declarant
- PAN
- Income Status
- Income in the previous year
- Residential Status
- Address of the Declarant
- Email id and the telephone number of the declarant
- Whether assessed to tax under Income Tax Act, 1961
- If, yes, the latest assessment year
- Estimated Income for which the declaration has been made
- Estimates Income of the Present Year
- Details of FORM 15G previously filled, if already filled in the current year
- Details of income for which declaration is filled
Lastly, While the PAN card plays an important role, it is also pertinent that the Aadhar Card be kept handy. One can always download Aadhar Card if not handy. FORM 15G is a helpful device for those willing to withdraw EPF in the given criteria.
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