In May 2019, EPF Member Website for employees allows one to submit the Form 15G for EPF Withdrawal online to avoid TDS. This article explains Rules of TDS on EPF Withdrawal, How to submit Form 15G, How To fill Form 15G.
Table of Contents
Overview of Form 15G and EPW Withdrawal
Now you can submit Form 15G online while submitting your EPF Withdrawal request.
- Login to UAN member website https://unifiedportal-mem.epfindia.gov.in/memberinterface/
- Click on Online Services->Claim (Form 31, 19, 10C)
- Verify last 4 digits of your bank account as shown in the images below
- You will see the EPF Withdrawal form
- Below I want to apply for , you will see Upload Form 15G as shown in the image above.
- Download the form 15G from here in pdf format
- Fill in Part I (You don’t have to fill Part II). Upload the Form in PDF format (if you have image, steps to convert image to pdf are given below)
- Enter other details and follow the process as explained in Online EPF Withdrawal: How to do Full or Partial EPF
TDS on EPF Withdrawal and Form 15G
The rules are that an employee should not be in employment for two months after resigning if he has to withdraw his Provident Fund amount.
Earlier one could withdraw EPF from one job even after joining another job as EPFO could not track if one is working or had a PF account. But now with UAN number, EPFO can find out whether you are employed or not and hence EPFO can theoretically reject your application.
On 1 May 2017, EPFO announced that all EPF Member’s who have activated their UAN and seeded their KYC (Aadhaar) with EPFO will be able to apply for PF Final Settlement (Form19), Pension Withdrawal Benefit (Form10-C) and PF Part Withdrawal (Form31) from the UAN Interface directly. If you meet these requirements then you can withdraw online. Our article How to do Full or Partial EPF Withdrawal Online explains it in detail with images and video.
TDS on EPF Withdrawal
If you are withdrawing EPF after 5 years of service then no tax or TDS should be deducted.
5 years mean 5 years of contribution to EPF, it may be in multiple companies and may have breaks. Say you worked in 1 organization for 3 years. Then you joined another organization and transferred your EPF from organization 1 to new employer. Once you work in the organization for at least 2 years then your total number of years will be counted as 5 years.
Provident fund withdrawal before five years of completion of service attracts TDS(tax deducted at source) effective from 1 Jun 2015.
- TDS on EPF is deducted if withdrawal is more than Rs 50,000. This is applicable from June 2016. Earlier this limit was Rs 30,000.
- TDS is deducted at 10 % provided PAN is submitted. Otherwise, TDS is deducted at the rate of 34.608 % if PAN is not submitted.
- If you withdraw offline you can submit form 15G/15H to avoid TDS. This form can now be submitted online while doing EPF Withdrawal.
Form No. 15G or 15H are self-declaration forms that can be furnished by individuals to state that their income is below the taxable limit and hence no TDS should be deducted. The final tax on his estimated total income computed as per the provisions of the Income Tax Act should be nil
Please note that if you withdraw your PF balance before the expiry of five years of contribution, then it is taxable in the year in which you withdrew whether TDs is deducted or not.
- Your employer’s contributions along with the accumulated interest amount will be taxed as “profits in lieu of salary” under the head Salary. However, relief under Section 89 will be available.
- Interest accumulated on your (employee) contributions will be taxed under the head “Income from other sources”.
- The tax deductions claimed on your contributions to EPF will be revoked or rolled back, and shall be liable to tax.
TDS deducted for EPF in Form 26AS
Just in case TDS is deducted and your PAN is registered, TDS will show up in Form 26AS as shown in the image below.
You need to account for it in ITR.
How to Fill Form 15G for EPF Withdrawal
- Download the form 15G from here in pdf format
- Fill in Part I.
- You don’t have to fill Part II.
- Scan it and save it as PDF. Make sure that size of pdf if less than 1 MB.
- If you save it as the image in jpg format then you can use sites like https://jpg2pdf.com/ to convert it to pdf.
- Login to UAN website with your UAN and password.
- Click on Online Services, Claim Form 31, 19 and 10C.
- Choose Form 19.
- Click on Choose File. Upload the pdf
How to Fill Form 15G for EPF Withdrawal
- Field 1, Name: write name as per your PAN.
- Field 2, PAN: write your PAN number.
- Field 3, Status: Usually Individual (Your income tax status which can be Individual/ Hindu Undivided Family(HUF)/ AOP as applicable to you.)
- Field 4, Previous Year: the year in which you will earn your income for which you want to avoid TDS. So it is the current financial year for which you are filing up the form. If you fill the form between 1 Apr 2019 to 31 Mar 2020 then you have to fill 2019-20.
The calendar year starts on January 1 and ends on December 31 but a Financial year (FY) is from April 1 to March 31. As per the Income Tax Act, income earned in a financial year (FY) is taxed in the next Financial Year. FY to which the income belongs is called the Previous year (PY) and the FY in which the income is taxed is called the Assessment year (AY). Ex: The income earned from 1st Apr 2019 to 31 Mar 2020, during FY 2019-20 will be assessed for tax in 2020-21 after you file tax. Here, FY 2019-20 is called Previous Year and FY 2020-21 is called Assessment Year or AY. Our article Income Tax Overview explains terms associated with Income Tax.
- Our article Difference between Assessment Year and Financial Year, Previous Year, Fiscal Year in World explains the What is the difference between the Financial Year and Assessment Year? What is Previous Year?
- Field 5, Residential Status: to be entered ex: Resident.
- As Form 15G or 15H can be filled only by Resident hence if one satisfies the condition one needs to mention Resident.
- For income tax purpose residential status of an assessee is classified into, Resident (ordinarily), Resident (not ordinarily), Non-resident. Under the Income-tax Law, an individual will be treated as a resident in India for a year if he satisfies any of the following conditions (i.e. may satisfy any one or may satisfy both the conditions):
- One is in India for a period of 182 days or more in that year; or
- One is in India for a period of 60 days or more in the year and for a period of 365 days or more in 4 years immediately preceding the relevant year.
- Field 6,7,8,9,10,11,12, Current Address details.
- Field 13, Email Id, your email ID
- Field 14, Telephone number, Phone number both LandLine number with STD code and Mobile No. If you don’t have a Landline just fill Mobile Number.
- Field 15 (a), Whether assessed to tax under the Income-tax Act, 1961. Yes, or No, Check the appropriate Box. Mention Yes if assessed to tax under the provisions of Income-tax Act, 1961 for any of the assessment years out of 6 assessment years preceding the year in which the declaration is filed.
- Field 15 (b), If yes, the latest assessment year for which assessed, Mention the last Assessment Year, the year in which you filed Income Tax return. For example, if you filed ITR till Mar 2019 for FY 2017-18, then enter the Assessment Year FY 2018-19
- Field 16, Estimated income for which this declaration is made, Mention the estimated income for which you are filing the Form. For EPF Withdrawal Enter the EPF amount you will get. This includes only Employee and Employer contribution. This should not include EPS or Pension. Verify from your EPF passbook or give a missed call to 011 229 01 406 and you will get SMS if your UAN is registered.
- Field 17, the Estimated total income of the P.Y. in which income mentioned in column 16 to be included, Please mention the total income for this financial year including the EPF withdrawal amount.
- Field 18, Details of Form No. 15G other than this form filed during the previous year, if any, In case any declaration(s) in Form No. 15G is filed before filing this declaration during the previous year, mention the total number of such Form No. 15G filed along with the total amount of income for which said declaration(s) have been filed. Typically people submit form 15G/15H to banks and post offices for not deducting TDS on Fixed Deposits.
- Total No. of Form No. 15G filed, How many Forms 15G have been submitted other than this form 15G in the current Financial year or Previous Year.
- Total amount of income for which Form No.15G filed, Total amount of income for which Form 15G has been filled in this year. Say you have submitted 1 Form 15G for interest income of Rs 50,000 from FD. Then you need to show the 50,000.
- Field 19. Details of income for which the declaration is filed,
- For Identification Number Mention the Provident Fund Number,
- For Nature of Income: TDS on EPF Withdrawal
- For Section: 192A
- For Amount: Mention your EPF amount(Employer + Employee)
Example of Filled Form 15G for EPF Withdrawal
Sample filled form 15G for Aarti Shukla, who withdrew EPF Rs 1,30,00 on 17 Jun 2019 and has other income as 10,000 Rs is shown below. She has last filed her ITR for FY 2017-18 or AY 2018-19 on 3 Jul 2018.
- If you have filed the return for FY 2018-19 or AY 2019-20 the last date for which is 31 Aug 2019 mention AY 2019-20
- Else mention the last Assessment Year in which your ITR was submitted. For example, if You filed the return for FY 2017-18 or AY 2018-19 then mention AY 2018-19.
- In the declaration, part Assessment Year would be 2020-21
Part II of Form 15G doesn’t have to filled by you.
Difference between Form 15G and 15H
Our article What is Form 15G? What is Form 15H? explains the Forms 15G/15H in detail.
- Form 15G can be submitted by individual below the Age of 60 Years who has taxable income as Zero. The maximum limit permitted for the Financial year 2019-20 is Rs 2,50,000
- Form 15H can be submitted by a senior citizen who has crossed the age of 60 if he satisfies the income tax criteria
- The maximum limit permitted for the Senior Citizen for the Financial year 2019-20 is Rs 3,00,000. For Senior Citizen who have attained and crossed the age 80 years, the tax free income slab is Rs 5,00,000.
- Also, exemption from tax on interest from fixed deposits and post office deposits have been revised to Rs 50,000 from Rs 10,000 for senior citizens for the FY 2018-19.
Notice from the EPFO for no TDs on EPF Withdrawal
- EPF Withdrawal before 5 years,TDS,Form 15G,Tax and ITR
- How to do Full or Partial EPF Withdrawal Online
- How to Fill Form 15G? How to Fill Form 15H?
- Difference between Assessment Year and Financial Year, Previous Year, Fiscal Year in World