Case AQ - How to fill up form 15 G lower for PF withdrawal? #makeknowledgefree Video Link - https://www.youtube.com/watch?v=GEXJlt2csak Dear Sir i am planning for my PF withdrawal. and i dont have a income which crosses the taxable limit and even dont have any shares income or anything mentioned in 15G form. so wat to be filled in the form while submitting it Solution -By Amlan Dutta +Madhu C , when they process your PF amount , in absence of form 15 G ,. they will deduct TDS @ 10 % on the sum if it exceeds 30000 Rs When you submit form 15 g if eligible, then they wont deduct !Note if you were withdrawing after 5 years , this is not required and no TDS deduction is done because PF withdrawal after 5 years is exempt from tax and therefore attracts no TDS deduction. Likewise if amount to be withdrawed is less than 30000 Rs , there is no TDS to be done and so this form 15 G submission is not requiredHowever income being totally taxable , the PF amount must be offered as income under other sources and taxes shall be applicable on total income as per slabs It is only when PF withdrawal is done before 5 years and the sum exceeds 30000 Rs that TDS deduction is done at the rate of 10 % under TDS sectionAnd 34.6 % in absence of PAN as per TDS provision Now , if your gross taxable income is below threshold levels , then whatever taxes are deducted , you will have to later claim back as refund after file refund tax return . So to save yourself the hassle, you may lawfully submit the form 15 G so that they don't deduct any TDSTherefore in effect and in concept form 15 G is nothing but a lower TDS requisition certificate . In form 15 G therefore you declare to the deductor bank or PF holder etc etc that your gross income of the previous year is below threshold levelsand quite evidently if it is below threshold , no taxes shall apply on you as per slabs and so TDS must not be deducted i.e lower TDS Everything is self explanatory in the form 15 G Lower TDS requisition certificate, which requires information with respect to certain holdings in specific schedule in the specific previous year where the income is subject to assessment Like people would expect , however , there is no schedule in the form 15 G , where you fill the PF taxable income. Here , in serial 22 , firstly you depict the estimated total income from holdings in schedule 1 stocks, schedule 2 securities , schedule 3 FD ,savings ,sums given on interest , schedule 4 Mutual fund holdings , and schedule 5 national saving scheme selecting only the ones that are applicable It is in serial 23 that you actually mention the total taxable income which will include this PF income and all other taxable income salary or FD or Capital gains or business profession etc with respect to the previous income year , post deductions . This is so that the deductor understands that the estimated total taxable income falls below threshold level.Only then the entire excercise of not deducting TDS shall make sense to the deductor,namely Bank /PF holder etc etc Besides form 15 G , there is a separate form 19 which is form application for withdrawing PF amount For form 15 G for non senior residents , GTI must be below threshold levels and form 15 H for senior residents total income must be below threshold levels Both Form 19 and This form 15 G if assesse is applicable ,needs to be submitted for PF withdrawal without TDS Needless to say that if assesses PF withdrawal exceeds threshold levels i.e 2.5 lakhs for non senior and 3 lakhs for senior , then form 15 G OR 15 H cannot be submitted at all because in that case asssess cannot by any thiught of imagination declare that his total total income is less than threshold because the withdrawal itself is greater than threshold levels and therefore the PF Body will in that case definitedly deduct on the PF sum TDS at the rate of 10 % on the sum Note all this because - EPFO Employees Provident Fund Organization, has issued a new circular relating to applicability of TDS Income Tax deduction at Source on EPF withdrawals. These new provisions are effective from 1st June, 2015. TDS is applicable on EPF withdrawal where accumulation balance is more than Rs 30,000 and the EPF member I.E Employee has worked less than Five years. As per EPFO’s circular, the Finance Act, 2015 20 of 2015 has inserted a new section ‘192A’ regarding the payment of accumulated provident fund balance due to an employee. The provision shall take effect from June 1, 2015.

• published: 17 Jul 2015
• views: 25486