12% of your salary goes into your PF fund and your employer pays the same amount into your PF account. However, sometimes you may need to withdraw money from your PF account. What is Form 15G and what is its role in saving TDS while withdrawing PF funds. Read what is the full news.
New Delhi. For working people, PF (Provident Fund) money is their biggest asset. PF account is handled by EPFO. 12 percent of your salary is deposited in the PF fund and the employer also contributes the same amount to your PF account. However, sometimes we need to withdraw money from our PF. Let us know what is Form 15G and how important it is to save TDS on withdrawal of PF money.
TDS is deducted above Rs 50 thousand
According to PF rules, you can withdraw money from your PF balance. However, if you withdraw more than Rs 50,000 in a year then the government, under Section 192A of the Income Tax Act, deducts TDS (tax deducted at source) on that amount.
However, if your income is not taxable then you can prevent TDS from being deducted on your PF withdrawal by filling Form 15G.
What is Form 15G?
People submit Form 15G or EPF Form 15G to save TDS on interest earned from EPF, RD or FD.
This form can be filled by individuals below 60 years of age and Hindu Undivided Families (HUF). Whereas for persons aged 60 years and above, Form 15H is there. Let us know Form 15G and Form 15H in more detail.
Form 15G is necessary to withdraw PF money
If you withdraw more than Rs 50,000 from your PF and if you do not want to deduct TDS on that amount, you are required to fill Form 15G. However, this can happen only if your income is not taxable and your employment tenure is less than 5 years.
Keep these things in mind
If you submit only your PAN card and do not submit Form 15G, then TDS of 10 percent is deducted.
But if you do not submit both PAN card and Form 15G, then TDS of 30 percent is deducted. Whereas if you submit Form 15G then TDC is not deducted.
Where to download Form 15G?
You can download Form 15G from the online portal of EPFO or the websites of major banks or the Income Tax Department website.
How to submit Form 15G?
- You can submit this form online by visiting the EPFO website.
- First of all you go to EPFO website
- Then, select ‘Online Services’ and click on ‘Claim’.
- For verification, enter your bank account number and click on ‘Verify’.
- Click ‘Upload Form 15G’ below the ‘I want to apply for’ option.
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