EPF is one such major part of our lifestyle that forms that basic emergency financial aid. It constitutes of various form types. One such is Form-15G. It is based on non-deductible TDS. However, it is different that there is some income range dependence. So, let’s read about Form15G for EPF claim withdrawal.
15G holds a separate place for fixed deposit holders and HUFs. It ensures no TDS deductions from your annual interest income. However, you must be less than 60 years.
The gate doesn’t close if you’re more than 60 years. You, too, can avail of options like Form-15H. It is the same as 15G except that it’s meant for people for more than 60 years.
All the banks have set aside a different set of rules to mark their profit. According to IT norms, TDS deductions get a mandatory stamp if your annual interests exceed Rs. 10,000. The interest acquired can get summarised up from your fixed deposit, recurrent deposit, etc.
Only recently that EPFO made the Form-15G withdrawal online. Yet, one of the greatest benefits of this form is you can restrict TDS deduction.
Where Can You Get Form-15G?
You can easily download this form online from many sites. It is also available on the Income Tax Department site. After filling the form, you can submit that online in banks.
Key Features Of Form-15G/H
There are certain major facts that you must go through before knowing how to fill-up the form-15G. These are mentioned below.
- Form-15G has the most extraordinary feature stating that it’s a self-declaratory form. It seeks no TDS deduction. However, it is valid for a range of income variation and not for all.
- Its self-declaratory feature is well stated under Section 197A of The Income Tax Act, 1961.
- Certain improvisations were made to the Form-15G in 2005 to tackle both tax deducted and tax deductor cost and compliance burden.
- The present format of the forms is framed by CBDT (Central Board of Direct Taxes).
Who Are Eligible To Apply For Form-15G?
Now, there’s a big misconception among many that form-15G is eligible for almost every individual. But it is a complete big ‘NO.’ There are some rules attached. So, let’s go through it.
The main factor playing is your age. If you’re below 60 years of age, then congratulations, you’re eligible for 15G. However, if you’re above 60, then no worries, you’re eligible for 15H. It is almost similar to 15G except for the age factor.
Apart from these, some other factors decide the eligibility like-
1. In case your total income does not surpass your basic exemption limit, you must submit either form-15G/H.
In the year 2019-20, if your age exceeds 60 years but less than 80 years, your exemption limit is Rs. 3 lakh. If it’s more than 80 years, the basic exemption is Rs. 5 lakh. However, in general, it is Rs. 2.5 lakh.
2. Another cause that decides your eligibility is your TAX LIABILITY for that year. That is, your tax liability for that year must be NIL.
Thus, you can’t exempt yourself from tax by applying form-15G/H.
By the way, do you know that Form-15G/H are self-declaration forms? That means you can furnish it to prove that your income is below the taxable limit. Thus, you can get a TDS deduction.
Now, since we’re done with the eligibility part, let’s put some light on TDS. Before jumping directly at how to fill the form-15G, let’s discuss TDS and the rules attached.
For better flexibility, let me put up a chart for you. Have a look!
1. There is no TDS implemented on your withdrawal if you do after 5 years. Well, 5 years, in other words, mean 5 years of service period or contribution. However, people contribute for 4 years and leaving an idle year behind, thinking it will exempt TDS; you’re wrong.
2. If you’ve worked under different employers, in different organizations, it’s considered. The total service period or contribution rendered is taken into contemplation.
For example, if you’ve served in one organization for 3 years and then shifted to another and served for 4 years. The total number of service period counted would become 7 years. Thus, no TDS will get applied. However, for this, you need to maintain a single EPF account.
3. You will get taxed if you withdraw before 5 years.
4. Under the head salary, the total interest, along with your employer’s contribution, gets taxed as “profits instead of salary.”
However, interest in your contribution gets tax imposition under the head ‘Income from other sources’.
How To Fill Form-15G?
Now that you’ve known about the details and where to get Form-15G, you must know next how to fill the form.
i. Visit the EPFO site and log in with your UAN id password.
ii. Click on ONLINE SERVICES.
iii. You’ll get a list of forms. Choose 15G/H.
iv. Verify your bank account’s last 4-digits.
v. Scroll below, and you’ll find an option ‘I want to apply for.’ Click on the UPLOAD and upload your Form-15G/H.
Key Details For The Easy Fill-Up Form-15G
Form-15G has two parts. The first part includes withdrawal without TDS deductions. Mentioned below are the fields you need to take care of-
1. Name of the Declarant- Mention your name as in PAN card.
2. In the next field, you need to give your PAN card details. PAN card is one of the most requisite things. In case you don’t have, the application will get rejected. You need to make a declaration for withdrawing your EPF amount.
3. In the next field, you need to provide your income status. It can be either Individual or Hindu Undivided Family or AOP. Whichever applicable put it. For example, if you’re single, put single in the field, or if one family put HUF.
4. In this field, you ought to select the previous year as the financial year to claim TDS’ non-deduction.
5. Mention you’re correct residential status, as mentioned in your PAN card with the correct PINCODE. Make sure it matches your current residential address.
6. In further fields, you’re asked for your e-mail id and contact number. Provide your recent e-mail id, and the contact number should match be linked with your Aadhar card.
7. In the next field, you need to put a tick on yes/no in a box. It asks if you’re assessed to tax impositions under the IT Act 1961. If yes, put a tick in that box. If yes, mention the year of the latest assessment for which the returns got an assessment. If no, tick on the box and nothing next.
8. In the ext field, you need to provide details about your approximate for which you’re filling this form. This is an important declaration as it depends on how much of your monthly wage should get deducted for EPF.
9. Mention your total annual income.
10. In the next field, you’ve to mention your last declaration (if made) with the total amount of income.
11. In the next field, you need to provide details of the income for which you made that declaration. It includes the investment account number/term deposit/LIC policy number, etc.
Once you’ve filled out, cross-check every detail. Make sure every field has correct information.
Form-15G is quite helpful in saving money in TDS deductions often. Yet, if you provide a false declaration to avoid TDS deduction, you might get into trouble. Under Section 277 of the Income Tax Act 1961, you can get imprisoned or fined if caught.
When Must You Submit The Form-15G/H?
You can submit the declaration in Form-15G/H for the reduction of TDS under the following conditions-
1. TDS Implied On Your Bank Deposit Interest Income
If the interest amount on a particular deposit exceeds Rs. 10,000 in a year, banks deduct TDS. However, this deduction is based on a particular provisional interest and not on your actual interest payout. Thus, even if your fixed deposit’s tenure period is more than a year, you must fill Form-15G/H to avoid TDS.
2. TDS On Income From Rent
On a rental income exceeding Rs. 8 lakh, TDS gets imposed. Handover form-15G to avail no TDS deductions if your basic exemption is higher than your taxable income.
3. TDS On EPF Withdrawal
If you withdraw your EPF amount before 5 years’ contribution, TDS gets imposed. However, if your total income from tax, including PF withdrawal, is zero, boldly go for form-15G/H to avail of the non-deduction of TDS.
4. TDS On LIC Policy Proceedings
Under Section 194DA of IT Act, 1961, if LIC policy maturity proceedings exceed Rs. 1 lakh, TDS imposition gets implied. But you can avoid this by submitting form-15G. However, for this, you must satisfy all the other factors.
5. TDS On Post-Office Deposit Interests
If you’re eligible for Form-15G, you can avoid this by submitting the form-15G.
6. TDS On Corporate Bonds And Debentures Income
If your income from corporate bonds and debentures exceeds Rs. 5,000 in a year, the tax will get imposed. However, if you’re eligible for Form-15G/H, you shall get exemptions.
What Are The Benefits Under Form-15G/H?
In today’s world, we hardly find someone who would work without expecting some benefits in return. So, let’s look forward to it.
The main benefit of this form is an exemption from TDS. However, it’s valid only in certain cases of a range of income. It is clearly explained in detail under the TDS deduction section above.
It has some limited criteria as well as benefits. According to its norms, if your service period is more than 5 years, it is no more mandatory for you.
1. Is it aptly required to file Form-15G?
2. What will happen if I fail to file the Form-15G/H?
Step-1: First of all, file an income tax return form to claim your TDS refund.
You need to make a file to the IT department as once TDS gets deducted; it’s in the hands of the income tax debt. To refund it. The bank has no character in it. After a procedure of verification, your refund claim request gets processed.
3. What varies between the Form-15G and Form-15H?
You can submit the Form-15G through individuals as well as HUF. However, for 15H, it’s mandatory for physical submission of the form.
If your monthly wage is below your exemption limit, you’re free to go for Form-15G. However, Form-15H is valid irrespective of any income options. Thus, if you’re a senior citizen, your income factor does not hold good for Form-15H.
TDS deductions are one of the major attributes every individual wants to adhere to. Who doesn’t want to save money? Form-15G is one such way out. In this article, we discussed every detail about Form-15G. I hope it helped you in some way out.
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