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Explained: How to Submit Form 15G Online to Avoid TDS on PF Payment?

As children, it was tedious whenever we went out shopping with our mothers. They hopped from shop to shop to get the best deal out of their purchases. Little did we understand then that “a penny saved is a penny earned”. Now that we take charge of our own finances, we realise the importance of saving every penny. Form 15G is one such tool that helps you retain your own money from getting deducted as tax from the source, provided the required terms and conditions are taken care of. Did you know that your EPF isn’t altogether immune to TDS? However, Form 15G can bail you out here as well. Here’s how you should submit Form 15G online to avoid TDS on your PF.

Rules on paying TDS on EPF withdrawal

  • No TDS applies on EPF withdrawal after five years of continuous service, provided you have contributed to EPF for at least five years.
  • You might have worked for multiple organisations, and your combined continuous service is more than five years. You have also retained the same EPF account throughout your entire service period. Under the circumstances mentioned above, you’re eligible for TDS exemption on EPF.
  • TDS will be applicable if you withdraw more than Rs.50,000 prior to the completion of five years of constant service. Your employer’s contribution and the interest earned on the same will be taxed under “profits in lieu of salary. The interest income earned on your contribution will be taxed under “income from other sources”. If you submit your PAN card, a TDS of 10% will be applicable to your EPF withdrawal. If you fail to submit your PAN, the tax deducted at the source will be 34.608%. However, you can avoid TDS on EPF withdrawal even if you take out more than Rs.50,000 before five years if:
    • The amount withdrawn is less than Rs.50,000
    • Cessation of service due to employee’s disability, ill health or demise
    • Cessation of service due to reasons you cannot be held accountable for, such as completion of a project, closing down of your company, etc.
    • You can submit Form 15G.

What’s Form 15G?

Form 15G is an online form via which you inform the bank that you will submit the due taxes on your own and that the bank need not deduct TDS from your interest income in a year, even when it exceeds the exemption limit. You can submit Form 15G at the beginning of every financial year along with your PAN card. 

Who can submit Form 15G at the time of EPF withdrawal?

  • Your overall income is within the basic threshold of tax exemption as per the latest tax slab.
  • If your tax liability as estimated for the present financial year is zero.

How to fill in and submit Form 15G online to avoid TDS on PF payment?

Wondering how to go about filling and submitting Form 15G online to avoid TDS on EPF withdrawal? Here’s a step-by-step guide that could come to your aid:

  • Sign in to Member’s Login of EPFO UAN at their Unified Portal.
  • Hit on the tab mentioning “online services.”
  • Check whether the last four digits mentioned in your savings bank account details are accurate.
  • Find out the EPF withdrawal form.
  • Download Form 15G from “upload Form 15G”. 
  • Form 15G has two parts. Let’s deal with Part 1 first:
    • Declarant’s name
    • PAN address
    • Status: whether you’re an individual, HUF or a Trust. Companies are not eligible for Form 15G
    • Previous year. If you’re filling out the form for the year 2020-2021, mention 2020-2021 in the form.
    • Residential status. Please note that NRIs are not eligible for Form 15G
    • Address details
    • Email address
    • Contact details
    • Select “yes” if you’ve filed an IT return in any of the last six assessment years prior to the current year. If “yes”, mention the latest assessment year for which you have filed your IT return. 
    • Punch in your estimated income for which you need to submit Form 15G
    • Mention your gross income from all relevant sources
    • Mention the total number of Form 15G you have submitted to date, including the one filled in for the current assessment year. Mention the total income for which you needed to submit these forms. Field 19 needs details for which the previous Form 15s have been declared. Please provide your UIN number  –  
    • Sign the declaration, type in your name, place, etc.
  • Part 2 will be filled in by the deductors, such as banks.
  • Upload the filled-in form.

Conclusion

The provision of dealing with Form 15G online has only abated the entire process of filling and submitting the same.

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