EPFO TDS Rules 2026: We set aside a part of our hard-earned income into the PF account for times of need. However, it’s common to find that when individuals leave their jobs or withdraw their PF for financial reasons, they receive much less than anticipated. The culprit? TDS (Tax Deduction at Source).
So, did you realize that a minor error could lead to the government taking away thousands of rupees in taxes from your PF withdrawal? Yes, if you’re considering withdrawing your PF, wait a moment! Grasp the significance of Forms 15G and 15H. These forms are essentially “magical” tools that can bring your tax down to zero.
What exactly are Forms 15G and 15H?
In simple terms, these are self-declaration forms. By completing them, you notify the EPFO in writing that your total annual income falls within the tax exemption threshold, and thus, TDS should not be applied to your PF withdrawal.
Form 15G: This is intended for individuals under 60 years of age.
Form 15H: This is specifically for senior citizens (60 years or older).
When and why is PF tax deducted?
According to EPFO rules, TDS is deducted only if you meet both of these conditions at the same time.
1. Your total period of continuous service must be less than 5 years.
2. You are withdrawing an amount of Rs 50,000 or more.
What does the tax calculation indicate?
If your PAN card is linked: 10% TDS will be deducted.
If your PAN card is not linked: This deduction can rise to 34%.
To avoid this hefty tax, Form 15G/15H has been introduced.
Who is eligible to fill out this form?
It’s crucial to understand that this form can only be completed by individuals whose tax liability on their total estimated annual income is ‘Zero’.
For 15G: Your total annual income (including PF withdrawals) must be below the basic exemption limit (currently Rs 2.50 lakh under the old regime). However, if your income is up to Rs 7 lakh and you are under the ‘New Tax Regime’, you can still submit this form as your effective tax is zero.
PAN is mandatory : Without a PAN card, these forms are worthless. Ensure your PAN is updated on the UAN portal.
How many copies and how to submit?
When you apply for ‘Full Settlement’ (Form 19) on the EPFO portal, you get the option of ‘Upload Form 15G’. Upload it in PDF format.
In 2026, you can now also verify it with Aadhaar based e-Sign.
If you are applying through paperwork, then you have to fill two copies of Form 15G/15H and submit them to your company or PF office.
