Understanding how tax rules apply to your Provident Fund (PF) withdrawal may make the process simpler and help you plan your finances. Many individuals discover only during the withdrawal process that TDS may apply on the payout when their service period is under five years and the withdrawal amount exceeds Rs. 50,000. This is often unexpected, and in many cases avoidable, if the individual’s taxable income falls below the basic exemption limit.
Here, form 15G comes into the picture. Form 15G allows an individual to self-declare eligibility to receive a non-deduction of TDS on specific types of income. One of these types of income is your provident fund withdrawal. Understanding how to use Form 15G will assist employees with provident fund withdrawal when changing jobs or leaving permanent employment by providing clarity on how to withdraw your provident fund without being taxed unnecessarily.
The guide below outlines what Form 15G is; why Form 15G is important for provident fund withdrawal; who qualifies for Form 15G; how to complete Form 15G online; and how to upload Form 15G electronically.
Table of Contents:
- Understanding Form 15G for Provident Fund (PF) withdrawal
- Why is Form 15G important for your PF withdrawal?
- Eligibility criteria for submitting Form 15G for PF withdrawal
- Step-by-step guide: How to download and fill Form 15G
- Section-wise Guide to Filling Part 1 of Form 15G
- Submitting Form 15G for PF withdrawal online via EPFO UAN portal
- Common mistakes to avoid when submitting Form 15G
- When is TDS NOT applicable on EPF withdrawal? (Beyond Form 15G)
Understanding Form 15G for Provident Fund (PF) withdrawal
What is Form 15G?
Form 15G is a self-declaration by the taxpayer under Section 197A (1) and Section 1971 (1A) of the Income-tax Act, which allows individuals (under 60 years of age) to declare that their taxable income is lower than the basic exemption. If accepted, it will enable certain types of income to be exempt from TDS, such as interest earned on fixed deposits or TDS on a PF withdrawal.
As per the Central Board of Direct Taxes (CBDT), Form 15G is meant for individuals whose tax liability is zero for the financial year. Do note that section 197A (1) allows non-deduction of TDS only when the tax on estimated total income is NIL.
Also Read: Mutual Funds vs Post Office: Key Differences
Why is Form 15G important for your PF withdrawal?
TDS applies on PF withdrawal only under specific conditions. TDS is deducted at 10% on EPF withdrawal above Rs. 50,000 when the employee has not completed five years of continuous service. If your income is below the taxable limit, submitting Form 15G may help avoid this TDS, so you receive the entire withdrawal amount.
Eligibility criteria for submitting Form 15G for PF withdrawal
When to submit Form 15G
You may submit Form 15G while withdrawing PF if both of the following conditions are met:
- Your total taxable income for the financial year is below the basic exemption limit. The basic exemption limit is Rs. 2.5 lakh for individuals below 60 years under the old Income Tax regime and Rs. 3 lakh under the new tax regime for assessment year 2025-26.
- Your PF withdrawal amount requires TDS. This includes:
- Service below 5 years
- Withdrawal amount above Rs. 50,000
Individuals have to ensure that both conditions apply before filing Form 15G. Filing it when you are not eligible may lead to tax notices or queries, as incorrect filing.
Also Read: How to Withdraw Money from Mutual Funds Easily?
Step-by-step guide: How to download and fill Form 15G
You may download Form 15G from:
- The EPFO portal
- The Income Tax Department website
- Any other official source
Section-wise Guide to Filling Part 1 of Form 15G
Form 15G consists of two parts, and employees withdrawing PF only need to complete Part I.
Key fields include:
- Name and PAN: Ensure your PAN is correct. PF withdrawal without PAN attracts 30% TDS, so PAN accuracy is important.
- Status: Select “Individual”.
- Previous Year: Enter the relevant financial year.
- Estimated Total Income: Include all income expected during the year.
- Income for which Form is Submitted: Mention “EPF withdrawal”.
- Total Number of Form 15G Filed: If multiple declarations are filed in the year, disclose them in this section.
- Details of Income / Investments: Provide withdrawal-related details, such as PF balance amount.
- Declaration and Signature: Confirm that your tax liability is nil, and sign the form.
EPFO accepts digital submission, so Part I is usually auto-filled and verified online when uploaded through the UAN (Universal Account Number) portal.
Submitting Form 15G for PF withdrawal online via EPFO UAN portal
You may submit Form 15G online while initiating a PF withdrawal request. Here are the steps to the process:
- Log in to the UAN Portal.
- Enter your UAN, your password, and the captcha.
- Navigate to Online Services and Claim (Form-31, 19, 10C).
- After this, verify your KYC details (bank, PAN, Aadhaar).
- Now, select the reason for withdrawal and proceed.
- You will be prompted to upload Form 15G (PDF) if TDS conditions apply.
- Submit the claim.
As per EPFO (Employees’ Provident Fund Organisation) guidelines online PF withdrawals are generally processed within 10-20 days. Turnaround time may vary based on EPFO workload.
Common mistakes to avoid when submitting Form 15G
- Submitting Form 15G when your income is taxable
This may lead to future tax notices. Misreporting in Form 15G could draw scrutiny. - Uploading the incorrect assessment year
AY and FY are expected to be entered correctly. - Providing a wrong PAN or mismatched KYC
Mismatch may trigger higher TDS. - Submitting Form 15G when you are a senior citizen
Senior citizens may use Form 15H, not Form 15G. - Submitting Form 15G without checking service duration
If service exceeds five years, TDS does not apply, so Form 15G may be unnecessary.
Also Read: SIP vs SWP vs STP: Differences and How to Choose
When is TDS NOT applicable on EPF withdrawal? (Beyond Form 15G)
As per EPFO rules, TDS is NOT deducted in the following cases:
- Service of five years or more.
- Transfer of PF from one employer to another.
- Withdrawal below Rs. 50,000.
- Terminated employment due to reasons beyond employee control.
If any of these apply, no Form 15G is required for PF withdrawal.
Frequently Asked Questions
Is Form 15G necessary if my PF withdrawal amount is less than Rs. 50,000?
No. As TDS applies only when withdrawal exceeds Rs. 50,000 and service is below five years. Form 15G is not needed for smaller withdrawals.
Can I submit Form 15G if I am over 60 years old?
No. Individuals aged 60 and above must submit Form 15H, not Form 15G.
What is the validity period of a submitted Form 15G?
Form 15G is valid for the financial year in which it is submitted.
What happens if I submit Form 15G but my total income later exceeds the taxable limit?
Individuals must pay any additional tax while filing your income tax return. Incorrect Form 15G submissions may attract compliance checks.
Where can I find my UAN number for the EPFO portal?
Your UAN number is printed on your salary slip or can be obtained from the EPFO website using your linked mobile phone number.
Can I submit a physical Form 15G for PF withdrawal?
EPFO processes claims made online through digital media. The only time you may have to submit a hard copy form 15G may be if you are submitting an offline claim for withdrawal.
