What is Form 15G and how it is used for PF withdrawal?

Holders of fixed deposits (individuals under the age of 60 and HUFs) may fill out Form 15G as a declaration to ensure that no TDS is deducted from their interest income for the fiscal year.
What is Form 15g?
What is Form 15g?

A Provident fund is a government-managed retirement savings scheme for employees who can contribute a part of their pension fund every month. And, Form 15G is a declaration that can be filled out by fixed deposit holders (individuals less than 60 years of age and HUFs) to ensure that no TDS (tax deduction at source) is deducted from their interest income in a year.

In the event that an employee withdraws the provident fund before completing five years, the Employees Provident Fund Organization (EPFO) introduced Form 15G for PF withdrawal, which enables PF members to pre-withdraw their PF online without any TDS deduction.

What is Form 15G?

A self-declaration form known as Form 15G for provident fund (PF) withdrawals guarantees the applicant that there will be no TDS (tax deduction at source) deducted from their funds if they withdraw them prior to the end of a specific financial year.

Eligibility For Form 15G

Form 15G is an essential tool for lowering the TDS burden related to PF withdrawal. Determining the prerequisites for submitting Form 15G and how making a false declaration can result in a fine or even imprisonment are therefore crucial. The applicant should be aware of the following important details and eligibility requirements before completing form 15G:

  • Only individuals can furnish Form 15G, and not any firm or company.
  • Individual needs to be a resident of India or HUF.
  • The age must be 60 years or less.
  • The computed tax amount on your total income including the PF balance withdrawal amount in a financial year should be nil.
  • The information submitted in the form should be true, correct, and complete.

Steps To Download Form 15G Online

The Central Board of Direct Taxes has digitized the Form 15G submission process (CBDT). A taxpayer only needs to download the form online, complete it with the correct information, and submit it. To avoid TDS deduction, you can also fill out and mail a physical copy to the regional EPFO office.

Following is the process to download Form 15G online:

  • You can download PF Withdrawal Form 15G from the online portal EPFO.
  • Click on “online services” and then go to “online claim” and fill in the required details.
  • Verify the last four digits of the phone number, and your PF withdrawal form will be visible.
  • Search for the “upload Form 15G” option to get the form downloaded on your PC or mobile.
  • Fill the Part 1 of the form and convert it into PDF. Upload the PDF copy of the form while making an online claim.

Steps to fill Form 15G

The PF withdrawal Form 15G is divided into two sections.

Section 1

The people who want to claim no TDS deduction on particular incomes are discussed in this section. Such people must fill out the PF Form 15G with the following crucial information:

  • Name of the assessee as per the registered documents.
  • PAN card details
  • Income tax status such as an individual, Hindu-Undivided Family (HUF) or any trust.  
  • Residential status, address details, PIN code.
  • E-mail ID and phone number.
  • Tick mark on “yes” if you have been assessed to tax under the Income Tax Act 1961 and mentioned the latest assessment year of returns.
  • Details of estimated income for which declaration is made.
  • Lastly, enter the details of investment interest income. For this, enter your PF account number.

Section 2

Here, the form is to be filled in by the individual who deposits the TDS to the government on behalf of the tax assessee. This individual is also known as the deductor.

In case of any false declaration made during Form 15G submission, heavy fines, and imprisonment under Section 277 of the Income Tax Act, 1961 are imposed.

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