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  • Category: Indian Law

    Withdrawal of EPF online - query on form 15G for EPF withdrawal


    Are you having a query about EPF withdrawal? Want to know which fields have to be filled in the form? Here, on this page our experts shall respond to your question.

    This query is regarding withdrawal of EPF online.

    One of my friend has worked for a company for nearly six years. Then he quit the job. After quitting he joined another organization, where he did not have EPF. After two years he joined another organization, and transferred his first company EPF to the present company. But, after working for just 4 months, he left the job. It's two years since he left the job and he is working as a freelancer now.

    He now wants to withdraw his EPF online, his Adhaar, Bank a/c and PAN is already linked with his UAN. Can you please guide the procedure? When he tried to claim online, first the website asked to verify his Bank acc number, he did that and proceeded. But in the 2nd page it was asking for form 15G. Is filling that is necessary? His PF amount is somewhere between 1-1.2L and his current freelancing income is below 2.4L per annum.

    Can you please advice how he can proceed.
  • Answers

    5 Answers found.
  • As per the existing rules and regulations in the matter of withdrawal from the EPF fund it is mentioned that there will not be any tax deducted at the source (TDS) if the person's EPF account is more than 5 years old. In case the EPF account is less than 5 years old then there is a rule of tax deduction at source (TDS). In such a situation it is advisable to fill the form 15G and the advantage of filling it is that if one has income less than 2.5 lakh in the corresponding year then TDS will not be deducted. So form 15G is only useful when the EPF account is less than 5 years old and the income of the person is less than 2.5 lakh in that particular year. For all other people whose account is more than 5 years old there is no TDS on the EPF withdrawal. If the system is showing it then they have to skip it.

    For those who have higher income than 2.5 lakh and have to file IT return, they will be showing this withdrawal in their IT return and it will be dealt as per the IT rules as applied to the EPF withdrawal.

    Knowledge is power.

  • From 15G for getting tax exemption for the income, we are getting. For the persons who completed their contributions for a minimum of 5 years, there will not be any tax deducted at the source. But for the people who are there for less than 5 years, there will be a tax deduction at the source. If we don't want that tax deduction we have to submit 15G. Once we submit that 15G there will not be any deduction at sources. But your friend is having contributions to the PF for more than 5 years. There will not be any deduction at the source. Your friend's income is less than 2.5 Lakhs. So if the site is asking for Form 15G, he can submit the same. There will not be any problem.

    drrao
    always confident

  • Filing both sides of Form 15G or H is a must while withdrawing PF amount as per the rules laid down by the EPFO. The apt suggestion is not to withdraw the PF accumulations in tender age that is to say before 45 years of age. A person one enrolled in EPF, he or she has to keep the details of PF number, Establishment Code, UAN number allotted to him/her till he or she withdraw the accumulations. It is better to transfer the accumulations to the newly joined company, if there is no PF facility in that company, wait for some period, avail Scheme Certificate from PF office. At the age of completing 50 years and if not employed, apply for withdrawal or pension by surrendering Scheme Certificate/s.
    As the Provident Fund is a social security measure, employees should aware the benefits of the scheme and not to withdraw in the middle on any account as there are chances of feeling later for this action.

  • Filling of 15 G or 15 H is to be maintained in all the cases for your own benefits. Any excess amount deducted by your employer or the bank where your account is existing may commit some mistakes resulting in deduction of TDS. Regular filling up of such a form fitting in your case would take care of refund of excess amount if deducted against TDS.
    EPF is your long term accumulated amount and in case of your retirement or in some cases of your voluntary retirement you will be benefited with a regular pension from this accumulated fund and hence the authority discourages for withdrawal from this fund in normal circumstances other than your health issues needing money for your treatment, your retrenchment from service or in case of your daughter's marriage.
    However, it is essential to note some of the vital points to track your account such as your PF account no, Establishment Code, UN Number so that you can intimate the authority regarding any anomaly in that account or your latest decision to close/ transfer the account if required.
    Your friend can ask EPF authorities to transfer your account in the existing organisation so as to continue this benefit. You may ask a loan from your PF account returnable if you wish with your regular payment of loan on monthly basis or you may request PF authority not to ask for any return for the amount availed as loan.

  • If you are aware of the process of withdrawal then will answer your query as crisply possible.

    Form 15G is submitted to intimate the deductor that tax deduction is not applicable upon you and it is required to be collected by the deductor. Even in case of banks Form 15G or 15H is to be submitted to intimate banks for non deduction of TDS or tax on interest income.

    In your friend's case as 5 year of continuous service as well as 5 years PF period, is fulfilled hence tax deduction will not be there and Form 15G submission is just a compliance part.
    In case the service would have been below 5 years then in case of withdrawal tax would have been deducted @10% and @30% if no PAN is submitted.

    As all the conditions are met hence there will not be any tax deduction and your friend can safely withdraw money from his PF account.

    Another word of caution, he must definitely withdraw the sim from PF account and invest it in some income generating avenue or simply bank as, after 3 months of no contribution to PF account continuously the interest accumulation comes to halt. Meaning you will not earn any interest on your accumulated balance if there is no contribution to your PF account for 3 straight months.

    Keep your funds in your custody and earn something on it than nothing.

    Live before you leave.


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