There are numerous ways to save on tax. One of the most common ways is to fill out the FORM 15G. FORM 15G is a declaration that is preferably filled out by those who hold fixed deposits and are less than 60 years of age and belong to the HUF. It is filled with the sole purpose to guarantee that no TDS or Tax Deducted at Source is deducted from the income for a year.
As per the rules, the banks are answerable to deduct the said tax or TDS on the fixed deposits, recurring deposits et al. if the interest earned through these deposits are more than INR 10000 yearly.
In a current development, EPFO had declared that one can submit the EPF form 15G through a newly started online facility, which will allow the members of EPF to withdraw Provident Fund or PF online. One can also evade paying TDS which is of inordinate benefit.
But before that, we need to know where to find the form and how to fill it up.
Where to find the FORM 15G?
FORM 15G can be found quite simply on the website of all banks. It can also be download from the same websites, free of cost. One can also have a look at the form on the EPFO portal. The process of downloading the form is similar everywhere.
So individual can search for it and click on it. Download the PDF version. Furthermore, one can also visit the Income Tax website and search for the same. It can be downloaded from the same free of cost.
What is The TDS on EPF Withdrawal Rules?
Section 192 A of the Finance Act of 2015 statuses that EPF withdrawal will attract a TDS if the amount is INR 50000 or more and the tenancy of the professional is less than 5 years. Formerly the withdrawal amount was INR 30000 and above.
However, at the 2016 Budget, it was amended. One can also make use of Form 15H. Though, there is a difference between the forms. FORM 15G is for those under the age of 60 years while FORM 15H is for those above 60 years of age.
Eligibility for a TDS
There are two conditions under which the TDS is deducted:
• On the submission of the PAN card, there will be a deduction of 10%. In this situation, the FORM 15G has not been submitted.
• If the PAN card has not been submitted, then 34.608% will be deducted. In this situation, also, FORM 15G has not been submitted.
Conditions under which the TDS is not applicable
When there is a transfer of the EPF account to another
If the EPF has been withdrawn after 5 years of service, which will include service with the current employer.
If the amount is withdrawn is less than INR 50000 but the tenure of service is less than 5 years.
The employee has been terminated for reasons beyond his or her control, like ill-health, stoppage of business, completion of project etc.
If the amount is withdrawn is more than INR 50000 or equal to it but both PAN card and FORM 15G has been submitted.
How to Fill up FORM 15G?
Here are the steps:
• Log in to EPFO UAN Portals for members
• Online Services option for claim (Form 31, 19, 10C)
• Verification of the last four digits of the bank account number is mandatory
• Click on the FORM 15G below the option “I want to apply for”
Instructions to fill out the FORM 15G:
• Name of the Declarant
• Income in the previous year
• Residential Status
• Address of the Declarant
• PAN
• Income Status
• Email id and the telephone number of the declarant
• Whether assessed to tax under Income Tax Act, 1961
• If, yes, the latest assessment year
• Estimated Income for which the declaration has been made
• Estimates Income of the Present Year
• Details of FORM 15G previously filled, if already filled in the current year
• Details of income for which declaration is filled
Finally, while the PAN card plays a significant role, it is also pertinent that the Aadhar Card be kept handy. One can always download Aadhar Card if not handy. FORM 15G is a cooperative device for those willing to withdraw EPF in the given criteria.
Form 15G and Form 15H are self-declaration forms that an individual submits to the bank requesting not to deduct TDS on interest income as their income is below the basic exemption limit. For this, providing PAN is compulsory. Some banks allow you to submit these forms online through the bank’s website. You are an individual or a person other than a company or a firm. You must be a resident Indian for the applicable Financial Year. Your age should be 60 years or less than. Tax liability calculated on the total taxable income for the financial year is zero. But as we all know that every single person has to give their tax to the government as well as every new start-up or any other business also need to pay their taxes on time otherwise they have to have pay a penalty for late tax filling but before that who one wanted to start a business they need an finance for daily running business activities so they can do their business in well manner and target their audience and provide better service to their customers. But doing all of these activities they need working capital and for that they need to go to bank for loan and there have to give a proper project report so that they can get bank loan for their project report and for that first they need to know what is Project Report, What is CMA Data, etc. and How to make Project Report or How to Prepare Project Report. Once they get to know what exactly the project report is, they can file loan for Bankable Project Report or even they can get subsidy on project report too and for that they need to understand subsidy DPR as well.
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