The employee’s additional 8.5% interest on the money deposited into their EPF is now considered supplemental income. All banks are required by income tax regulations to withhold TDS from interest earned on FDs or RDs that is greater than 10,000 yen per fiscal year. This means that the employee must fill out a Form 15G to pay taxes on this interest income.
Our blog has all the information you need to know about the Form 15G in EPF.
Explanation of EPF Form 15G
A statement known as EPF Form 15G basically guarantees that an employee’s interest income is not affected by TDS (Tax Deducted at Source).EPF members can now submit their EPF Form 15G on a website developed by EPFO in order to withdraw their PF online. Holders of fixed deposits—individuals under the age of 60 and HUFs—are required to complete this form.
Guidelines for Application TDS
TDS, or tax deducted at source, may be crucial in some instances.The following is a list of various TDS-application scenarios:
TDS at a rate of 34.6% will be deducted from an employee’s pay if they fail to submit EPF Form 15G/Form 15H and PAN cards. This applies if an employee shows a PAN card but does not submit an EPF Form 15H.
Situation where TDS is not Applied
The following are some situations in which TDS is not applicable:
* When a balance in two EPF accounts is transferred
* when an employee has worked for at least five years and withdraws their EPF balance.
* When an employee has worked for less than five years and has an EPF balance of less than 50,000.
* When an employee has worked for less than five years and withdraws an amount that is greater than or equal to 50,000.In this instance, it is essential to keep in mind that the employee must submit Form 15G/15H and their PAN card.
Know more about: How to apply for PF online?
How to Complete EPF Form 15G?
Once you know when TDS is relevant and when it is not, you should fill out the EPF form 15G on your own. Here, we’ll talk about two particular techniques: how to complete and submit your EPF Form 15G If you follow the steps below, you can submit your EPF Form 15 G online in a matter of minutes:
* Claims can be selected by clicking the “Online Services” option on the EPFO UAN portal, which can be accessed online at https://unifiedportal-mem.epfindia.gov.in/memberinterface/. First, you must sign in.
* You must now enter the last four numbers of your registered bank account for verification purposes.
* By selecting it under the “I wish to apply for” option, you can upload your Form 15G.
Here, we provide a brief explanation of the steps required to complete your Form 15G.It is essential to keep in mind that EPF Form 15G consists of two sections
Section 1 is for people who want to say that they don’t want TDS taken out of some of their money. On their EPF Form 15G, these individuals must complete the following fields:
* Field 1:The Declarant’s or Assessee’s name as it appears on the PAN Card.
* Field 2:The Assessee’s PAN card is required; Form 15G would be deemed invalid if the assessee did not possess a PAN card.
* Field 3:Whether you are an individual, HUF, or AOP determines your position in terms of income tax.
* Field 4: The previous fiscal year for which no TDS was deducted is referred to by this phrase as “previous year.”
* Field 5: A residential address is required because NRIs are not permitted to submit Form 15G.
* Field 6-12:Name and PIN number. For purposes of communication.
* Fields 13-14:For communication purposes, an email address and a phone number are required.
* Field 15(a):If you were assessed income tax under the Income Tax Act of 1961, mark the box next to “Yes.”
* Field 15:If you checked the box in Field 15 (a), please specify the most recent assessment year for your returns.
* Field 16:estimated earnings used in this evaluation.
* Field 17:total anticipated revenue from the previous year, including revenue from Field 16.
* Field 18:If you submitted Form 15G last year, describe it in detail.
* Field 19:In this declaration, you are required to provide information regarding the income you are declaring.
Keep in mind that the specifics of the investment for which this statement is being submitted must be completed in the final section of Form 15G.Other investment account numbers, such as term deposits, life insurance, and employee codes, must also be entered.
The second section of the form must be completed by the person who will actually deposit your TDS to the government on your behalf, also known as the deductor.
To summarize, despite the fact that submitting a false application for tax deduction (TDS) benefits can result in severe penalties, including a substantial fine and imprisonment under Section 277 of the Income Tax Act of 1961, submitting a false application for TDS benefits can have serious consequences.