Employee Provident Funds (EPF) are funds set up for employees' welfare in which 12% of each employee's monthly base pay and dearness allowance are deposited into the fund account. The employer contributes correspondingly. This fund balance has an annual interest rate of 8.10%.
According to the PF withdrawal regulations, you can withdraw this PF sum. However, if the withdrawal amount exceeds Rs. 50,000 each Fiscal Year, Tax Deducted at Source (TDS) will be withheld following section 192A of the income tax Act. As a result, you will only get the remaining sum. If your Income falls below the taxable limit, however, you can ensure no TDS deductions on your withdrawal amount by completing PF form 15G. Let’s find out more information about this form in this post.
15G Form or EPF helps to prevent TDS from being deducted from the interest you earn from your EPF, Recurring deposit (RD), or Fixed Deposit (FD) in a given year. Everybody under 60 years of age and Hindu Undivided Families (HUFs) are required to make this statement.
The Form 15G's primary characteristics are as follows:
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You can download the form from here - 15G Form
There are two sections on Form 15G. The person who wants to claim no deduction of TDS on a particular income should fill out the first component. The important information you must enter in the first section of Form 15G is as follows:
Yes, if you do not want TDS to be subtracted from the withdrawal amount, Form 15G is required. As per Section 192A of the Finance Act 2015, if your work term is shorter than five years and you take more than Rs. 50,000 from your PF, TDS will be applied.
Following the guidelines mentioned above, the below-mentioned PF withdrawal rules will be applicable:
Here are the differences between Form 15H and Form 15G:
|Form 15G||Form 15H|
|Applicable to anyone under 60 years of age||Applicable to people who are 60 years or older|
|HUF, as well as people, can submit||Can only be submitted by people|
|Only individuals or HUF with annual incomes below the basic exemption limit are eligible||No matter their annual income, older citizens can submit the form|
Let's go on and learn how to fill out Form 15G for an online EPF withdrawal now that you are aware of the TDS regulations that apply to EPF and what Form 15G or 15H is:
Here is what you can do if Form 15G was due but wasn't submitted timely and TDS has already been taken out:
Once a bank or other deductor deducts TDS, they are obligated to deposit the money with the Income Tax Department and cannot reimburse you. The only way out is to file an ITR and receive a refund of your income taxes. The Income Tax Department will process your refund claim request and credit the extra tax withheld for the fiscal year after verification
After each quarter, when the relevant interest is computed on the fixed deposit, banks typically deduct the TDS. To avoid further deductions for the current fiscal year, filing Form 15G as soon as possible is preferable
The Income Tax Act of 1961's Section 277 imposes severe fines and prison sentences for making a false statement on Form 15G to avoid TDS. The specifics of the penalties are as follows:
When it comes to reducing the TDS load, Form 15G is often very helpful. However, under Section 277 of the Income Tax Act of 1961, making a false declaration in Form 15G to avoid TDS can result in a fine or perhaps jail time. The person who will deposit the tax withheld at source to the government on behalf of the tax assessee or the deductor must fill out a second section of the form.
A: No, the financier or bank must complete the second section of Form 15G.
A: No, only Indian citizens are qualified to submit Form 15G.
A: No, Form 15G is merely a self-declaration form that enables no TDS to be taken on interest income because there is no tax on your complete or total income.
A: The estimated income listed in Form 15G is the income you have brought in throughout the specific fiscal year.
A: Form 15G is only valid for one fiscal year, and a person must provide a new form for each further year.