EPF Form 15g :EPFO( Employees Provident Fund organization) is continuously working for the benefit of employees. EPF facility is the most beneficial scheme for future savings. It gives you an accumulated amount of your hard-earned money after your retirement and secures your future.
There are specific laws associated with the EPF withdrawal decided by the EPFO.
The amount received by the employee at the end of his service through EPF attracts some taxes that is TDS ( Tax deduction at source) if he/she has worked only for less than five years.
The TDS is charged when the person quits the job before completing five years of service, and his deposited amount in the EPF is more than rs.
50,000( as per the latest budget) earlier, the limit was only Rs. 30,000.
The current rate of TDS deduction, according to the EPFO, is 10 % of the accumulated amount. This TDS rate can be higher if the person has not submitted his Pan card during withdrawal. In that condition, the rate will become 34.608%.
What is EPF Form 15g?
Despite these heavy taxes, there is another way to get relief from this short TDS at the time of EPF withdrawal. You can be exempted from the tariffs by filling in simple forms like Form 15g or Form 15 H.
These document forms are filled to ensure that there will be no tax deduction at source (TDS) from the interest of the fixed deposit during withdrawal. All the banks are obliged to cut TDS from the appeal if that is more than a specific amount.
EPFO online Unified portal has also launched the facility of FORM 15G. EPF FORM 15 G offers you the tax exemption from your provident fund. It must be a significant saving if you fill this form and get the whole amount of your savings.
EPFO provides the facility of online PF withdrawal too. This Form 15 g is filled by those individuals whose age is less than 60 years.
Form 15g is available online on various websites. You can also download that Form by EPFO online portal. This tax deduction form 15 can also be availed from the income tax website.
Steps of filling that form-
- Name ( make sure your name should match with the PAN card.
- The assessee should have a valid identity proof that it is a PAN card.
- You have to mention your income tax status and the year ( previous year) you are claiming for the TDS.
- Your necessary details are required like email address, phone number, residential status, and residential status ( NRI are not eligible to fill this form).
- assessment status by the income tax department and their previous assessment.
- estimated income needs to be mentioned in the form for making a declaration. You have to give all your investment plans, account numbers, and all the policy details.
- You also have to mention whether you have filled the FORM 15G earlier or not.
- Have you to check all the details filled in the form twice and make sure that they are correct; you have to submit it to the deductor; after validation, they will submit it to the income tax department. You have to offer one copy to the bank also from which you are enjoying interests.
This FORM 15g is beneficial for saving tax. You should always mention the correct and valid information in FORM 15G. If you are not valid and proved to be fraudsters at the time of validation, it can also cause a hefty penalty or imprisonment.