A provident fund is a government-run retirement savings plan for employees who can contribute a portion of their pension fund each month. And Form 15G is a declaration that can be filled by fixed deposit holders (people below 60 years and HUF) to ensure that no TDS (tax deduction at source) is deducted from their interest income in a year.
In case an employee withdraws provident fund before completing five years, Employees’ Provident Fund Organization (EPFO) introduced Form 15G for PF withdrawal, which allows PF members to pre-draw their PF in line without any TDS deduction.
What is Form 15G?
A self-declaration form known as Form 15G for provident fund (PF) withdrawals assures the applicant that no TDS (tax deduction at source) will be deducted from his funds if he withdraws them before the end of a specific financial year.
Eligibility for Form 15G
Form 15G is an essential tool to reduce the TDS burden related to PF withdrawal. Therefore, it is crucial to determine the prerequisites for filing Form 15G and how making a false statement can result in a fine or even imprisonment. The applicant must know the following important details and eligibility requirements before filling Form 15G:
- Only individuals can file Form 15G, and no company or company.
- The individual must be a resident of India or HUF.
- Age must be 60 years or younger.
- The tax amount calculated on your total income including the withdrawal amount from PF balance in a financial year should be nil.
- The information submitted in the form must be true, correct and complete.
Steps to download the 15G form online
The Central Board of Direct Taxes has digitized the process of filing Form 15G (CBDT). A taxpayer only needs to download the online form, fill it out with the correct information and submit it. To avoid TDS deduction, you can also fill out and mail a physical copy to the EPFO regional office.
The following is the process to download Form 15G online:
- You can download the PF 15G withdrawal form from the EPFO online portal.
- Click on “online services” and then go to “online claim” and fill in the required details.
- Check the last four digits of the phone number and your PF withdrawal form will be visible.
- Look for the “upload 15G form” option to download the form to your PC or mobile device.
- Complete Part 1 of the form and convert it to PDF. Upload the PDF copy of the form while filing a claim online.
Steps to fill out Form 15G
The PF 15G withdrawal form is divided into two sections.
Section 1
This section discusses people who do not want to claim any TDS deduction on particular income. These people must complete the PF 15G form with the following crucial information:
- Name of the assessee according to the registered documents.
- PAN Card Details
- Income tax status, as an individual, Hindu Undivided Family (HUF) or any trust.
- Residential status, address details, PIN code.
- Email ID and phone number.
- Check ‘yes’ if you have been taxed under the Income Tax Act, 1961 and you have mentioned the last year of assessment of returns.
- Detail of the estimated income for which the declaration is made.
- Lastly, enter the details of the investment interest income. To do this, enter your PF account number.
Section 2
In this case, the form has to be filled by the person depositing the TDS to the government on behalf of the tax assessor. This individual is also known as the deductor.
In case of any false declaration made during filing of Form 15G, heavy fines and imprisonment are imposed under section 277 of the Income Tax Act, 1961.
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Source: ptivs2.edu.vn