How to Fill Form 15g for PF Withdrawal?
Do you wanna know how to fill form 15g for pf withdrawal? Form 15G, a declaration form, is for the people who are holders of a fixed deposit account to fill out.
When you do not have income that is taxable, you must submit Form 15G to banks and other financial institutions. According to tax-saving advice from investment professionals, anyone with yearly incomes up to Rs. 2.5 lakhs can avoid TDS deduction on PF withdrawals by submitting form 15g/15h. Let us know how to fill form 15g for pf withdrawal.
Read: How to Write Self Check?
What is Form 15g?
An individual with a fixed deposit account in a bank who is under the age of 60 must complete Form 15 G, an authorised document. This is done to make sure that TDS deductions are not made from the interest that is earned on the specific deposit account. Prior to this change, TDS deductions applied to all fixed deposit accounts that had earned a gross interest of INR 10,000 or more during a given financial year. The Government has raised the threshold for designating an account liable to TDS deductions beginning with the financial year 2019–20. The current cutoff point for doing so is INR 40,000 in a particular fiscal year.
Key features of 15G Form
- If the taxpayer’s annual income is below the exemption limit, this form, which is a self-declaration form, must be submitted.
- The Income Tax Act of 1961’s Section 197A provision serves as the foundation for all of the rules and guidelines contained in this self-declaration form.
- Since 2015, the Form 15G’s structure has undergone a number of adjustments intended to reduce the costs and compliance requirements placed on the deductee and tax deductor.
- The Central Board of Direct Taxes (CBDT) has prepared the current framework for Form 15G and Form 15H. (this is Form 15G for senior citizens).
- Taxpayers under the age of 60 may utilise Form 15G. Anyone over 60 must complete Form 15H, which is quite identical to Form 15G. Senior citizens are the only ones who use this form.
- If there are any existing undertakings, Form 15G must be submitted in the first quarter of any FY in order to be eligible for the benefit. This form must be submitted for brand-new ventures before an investment garners attention for the first time.
Where Can You Acquire Form 15G From?
Obtaining Form 15G to lessen the burden of TDS deduction is extremely simple. It is available for free download via the EPFO portal and all of the major banks’ websites. The Department of Income Tax’s website also provides access to this form. You also have the option of submitting the Form 15G online through the websites of the major Indian banks.
Tax Rules for 15G
When The Tax Becomes Effective-
- If you have withdrawn more than 50,000 and have worked for less than 5 years, the act mandates that a Tax Deducted on Source (TDS) be deducted from your EPF withdrawal. This cap was increased in the 2016 budget. Prior to 2016, an amount greater than 30,000 or greater than the withdrawal amount was the upper limit for this form of TDS.
- When the employee submits a PAN card, 10% of the TDS is subtracted.
- But the TDS will be charged at 34.6% if the employee is unable to submit the PAN card.
When The Tax Isn’t Relevant-
- whenever someone moves their EPF account to another account.
- when an employee’s employment is ended due to a loss of health, the completion of a project, etc.
- if the employee takes a full withdrawal after five years of service.
- If the employee’s service has lasted less than five years but the EPF is less than 50,000.
- if the employee requests a withdrawal of at least 50,000. Even if he has less than five years of employment, he is still entitled to submit Form 15G/15H and his PAN card.
How to fill form 15G?
See the steps to know how to fill form 15g for pg withdrawal-
- Enter your name as it appears on your income tax records and your PAN number as it appears on your PAN card under Name of Assesse (Declarant).
- Status – Indicate if you are a HUF or an individual.
- Enter the current fiscal year for which you are submitting the form.
- Residential Status: Only residents may complete this form. here to check your residency status
- Include the PIN number, email address, and phone number along with the address information.
- Whether subject to taxation under the 1961 Income Tax Act? – Select “yes” if any of the last six years saw your income exceed the taxable threshold.
- If so, state the most recent assessment year for which you were assessed and the most recent year in which your income above the taxable threshold.
- Sum of interest or other income on which TDS should not be deducted from the estimated income for which a declaration is submitted.
- Estimated total revenue for the prior year, which must include the income from column 16: Determine your total yearly income from all sources, including your pay, stipend, interest income, and any other income you may have received. Include the income specified in item 16 above. If another Form 15G was filed during the prior year, please specify how many total Form 15Gs were submitted during that time period.
- Additionally, enter the total amount of revenue reported on Form 15G. Don’t forget to include the total income reported on Form 15G.
- Fill in the income information for which a declaration has been filed; the account or investment’s identification number, the source of the revenue, section where tax deductions are allowed, Quantity of income Give the details of your NSCs, life insurance policy number, recurring deposit account number, and fixed deposit account number (many of these are chargeable to tax under section 56 of the income tax act)
- Signatures: When signing on behalf of a HUF or AOP, please indicate your authority.
How to Fill Form 15G for PF Withdrawal- FAQs
- Is the online submission of Form 15G for PF withdrawal required?
Answer-Even if one’s gross taxable income is below the cutoff but their total taxable income (including the provident fund withdrawal) balance is zero, they must still submit Form 15G and request an exemption. Withdrawals from Provident Fund (PF) accounts are subject to it.
- Is 15G required in order to withdraw PF?
Answer-You must fill out Form 15G if you withdraw money from your PF account before the full 5 years have passed in order to avoid TDS deduction.
- What is the Form 15G’s projected income?
Answer-The income you made during the current fiscal year is listed as your estimated income on Form 15G.
- What happens if form 15G for PF withdrawal is not submitted?
Answer-If an employee with less than five years of service withdraws more than or equivalent to Rs. 30,000, TDS will be deducted at a rate of 10% if Form 15G/15H is not completed, provided PAN is submitted.
- If the 15G is not submitted, what happens?
Answer-If you do not complete Form 15G, Tax Deducted at Source will be debited from your account, and you will receive a TDS certificate that you can attach when completing your income tax return and pay any unpaid taxes (if any).