Dear Sir/Ma’am, Greeting!!! I am working in a construction organization and I want to know why FORM-15 G require at the time of PF withdraw (before 5 years). Regards, Mohit Tripathi HR (IR)
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Why Form-15G is Required for PF Withdrawal Before 5 Years
Form-15G is a declaration form under the Income Tax Act of India that is required for individuals to declare that their income is below the taxable limit and hence, no TDS (Tax Deducted at Source) should be deducted on the interest earned on their investments. When it comes to PF withdrawal before completing 5 years of continuous service, the requirement for submitting Form-15G is to ensure compliance with tax regulations.
Here's why Form-15G is necessary for PF withdrawal before 5 years:
- [ICON] Tax Implications: If an employee withdraws their PF amount before completing 5 years of continuous service, the withdrawal becomes taxable if the amount exceeds a certain threshold. By submitting Form-15G, individuals declare that their total income is below the taxable limit, and hence, no TDS should be deducted on the PF withdrawal amount.
- [ICON] Avoiding TDS Deduction: Without submitting Form-15G, the PF trustee or the EPFO (Employees' Provident Fund Organisation) is required to deduct TDS on the PF withdrawal amount if it exceeds the specified limit. This deduction can be avoided by submitting Form-15G along with other necessary documents.
- [ICON] Compliance Requirement: The submission of Form-15G is a regulatory requirement to ensure that individuals do not face unnecessary TDS deductions on their PF withdrawals when their income falls below the taxable threshold.
Steps to Submit Form-15G for PF Withdrawal
1. Obtain Form-15G: Download Form-15G from the official income tax website or collect it from the bank or post office.
2. Fill in Details: Provide accurate personal and income details as required in the form.
3. Submit to PF Trustee: Submit the filled Form-15G along with a copy of your PAN card to the PF trustee or EPFO office.
4. Verification: Ensure all details are correctly filled and cross-verify the information provided.
5. Acknowledgment: Once submitted, ensure you receive an acknowledgment of the Form-15G submission for your records.
By following these steps and submitting Form-15G correctly, individuals can avoid unnecessary TDS deductions on their PF withdrawals before completing 5 years of continuous service.
From India, Gurugram
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54Form-15G is a declaration form under the Income Tax Act of India that is required for individuals to declare that their income is below the taxable limit and hence, no TDS (Tax Deducted at Source) should be deducted on the interest earned on their investments. When it comes to PF withdrawal before completing 5 years of continuous service, the requirement for submitting Form-15G is to ensure compliance with tax regulations.
Here's why Form-15G is necessary for PF withdrawal before 5 years:
- [ICON] Tax Implications: If an employee withdraws their PF amount before completing 5 years of continuous service, the withdrawal becomes taxable if the amount exceeds a certain threshold. By submitting Form-15G, individuals declare that their total income is below the taxable limit, and hence, no TDS should be deducted on the PF withdrawal amount.
- [ICON] Avoiding TDS Deduction: Without submitting Form-15G, the PF trustee or the EPFO (Employees' Provident Fund Organisation) is required to deduct TDS on the PF withdrawal amount if it exceeds the specified limit. This deduction can be avoided by submitting Form-15G along with other necessary documents.
- [ICON] Compliance Requirement: The submission of Form-15G is a regulatory requirement to ensure that individuals do not face unnecessary TDS deductions on their PF withdrawals when their income falls below the taxable threshold.
Steps to Submit Form-15G for PF Withdrawal
1. Obtain Form-15G: Download Form-15G from the official income tax website or collect it from the bank or post office.
2. Fill in Details: Provide accurate personal and income details as required in the form.
3. Submit to PF Trustee: Submit the filled Form-15G along with a copy of your PAN card to the PF trustee or EPFO office.
4. Verification: Ensure all details are correctly filled and cross-verify the information provided.
5. Acknowledgment: Once submitted, ensure you receive an acknowledgment of the Form-15G submission for your records.
By following these steps and submitting Form-15G correctly, individuals can avoid unnecessary TDS deductions on their PF withdrawals before completing 5 years of continuous service.
From India, Gurugram
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PF Withdrawal form.doc
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