When is TDS Deducted on PF Withdrawals?
According to Income Tax rules, Tax Deducted at Source (TDS) is levied on PF withdrawals if the following two conditions are met:
- Your total continuous service is less than 5 years.
- The total PF withdrawal amount is ā¹50,000 or more.
What are the TDS Rates?
| Scenario | TDS Rate |
|---|---|
| Service > 5 Years | Nil (0%) |
| Withdrawal < ā¹50,000 | Nil (0%) |
| Service < 5 Yrs, Withdrawal > ā¹50K, PAN Submitted, Form 15G Submitted | Nil (0%) |
| Service < 5 Yrs, Withdrawal > ā¹50K, PAN Submitted, No Form 15G | 10% |
| Service < 5 Yrs, Withdrawal > ā¹50K, No PAN Submitted | Maximum Marginal Rate (34.6%) |
How to Submit Form 15G Online
If your total taxable income for the financial year (including the PF withdrawal) is below the basic exemption limit (ā¹3 Lakh in the New Tax Regime), you can submit Form 15G to prevent any TDS deduction.
- Download the latest Form 15G (or 15H for senior citizens above 60 years) from the Income Tax portal.
- Print it, fill out Part 1 manually, and sign it. Leave Part 2 blank.
- Scan the filled Form 15G and convert it into a single PDF document (must be below 1MB).
- Login to the EPFO Unified Portal and go to
Online Services>Claim (Form-31, 19, 10C & 10D). - Under the Form 19 section, you will see a prominent Upload Form 15G button. Click `Choose File` and upload your signed PDF.
- Complete your Aadhaar OTP authentication to submit the claim.
ā ļø Warning: Making a false declaration in Form 15G to avoid TDS when your income is actually taxable is a punishable offense under Section 277 of the Income Tax Act.
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