Form 15G for PF withdrawal — when is it required (and when it isn't)?

TDS on premature EPF withdrawal is governed by old Section 192A (carried into the Income-tax Act, 2025). Figures below are for FY 2025-26.

The one rule to remember

TDS is deducted on an EPF withdrawal only if BOTH of these are true:

1. The withdrawal is taxable — i.e. you had less than 5 years of continuous service, and
2. The taxable amount is ₹50,000 or more.

If TDS applies, it is 10% (with PAN). Form 15G is simply a declaration that your total income is below the taxable limit, so that the EPFO does not deduct that TDS. It is only valid — and only useful — if your income genuinely is below the limit.

Decision table — do you need Form 15G?

The 5-year service rule (the big one)

• "5 years" means 5 years of continuous service — and it includes service with a previous employer if you transferred the PF across. So 2 years at one job + 3½ years at the next, with a transfer, = over 5 years = tax-free.
• If you leave before 5 years due to ill health, the employer shutting down, or reasons beyond your control, the withdrawal is still exempt.
• This is why transferring, not withdrawing, between jobs is almost always better — it protects the 5-year exemption and keeps the corpus compounding.

The ₹50,000 threshold

The threshold applies to the taxable PF amount being withdrawn. Below ₹50,000, no TDS is deducted at all, whatever your service length — so Form 15G is irrelevant. At ₹50,000 or more (and under 5 years' service), TDS enters the picture and Form 15G becomes the tool to avoid it if you qualify.

What Form 15G actually declares (and Form 15H)

• Form 15G is a self-declaration that your estimated total income for the year is below the basic exemption limit and your final tax liability is nil.
• It is for residents below 60. If you're 60 or above, you use Form 15H instead (which has a slightly easier condition).
• Don't submit it if it isn't true. A false declaration to escape TDS carries penalties — if your income is above the limit, let the 10% be deducted and claim it back through your return.

Is the PF withdrawal itself taxable?

• Service 5 years or more → the entire EPF withdrawal (your contribution, employer's contribution and all interest) is fully exempt.
• Service under 5 years → it is taxable: the employer's contribution and interest on it are taxed as salary; the interest on your own contribution is taxed as other income; and the 80C deductions you earlier claimed on your own contributions are added back to tax in the year of withdrawal. TDS of 10% is only a part-payment against this — the actual tax is worked out in your ITR.

The pension (EPS) portion

Your monthly PF has two parts — the EPF (the provident fund) and the EPS (the pension scheme). The ₹50,000 threshold and the TDS/Form-15G question relate to the EPF withdrawal. The EPS amount is dealt with separately (withdrawal benefit or scheme certificate), and you can choose to withdraw only the EPF and retain the pension — a common and sensible choice if you've under 10 years of service.

KYC — what must be in place to withdraw online

For a smooth online claim your UAN should be linked with a verified PAN, Aadhaar and bank account, and your date of exit must be updated by the employer (or by you online after two months). If Aadhaar isn't seeded, the online claim typically won't go through even if PAN and bank are verified — get the Aadhaar linked first.

If you're an NRI

Form 15G is for residents only — a non-resident cannot use it. On a taxable EPF withdrawal an NRI faces TDS under Section 192A and instead uses a lower/nil-TDS certificate (Section 197) or claims a refund by filing an ITR, with DTAA relief where relevant. See the NRI PF-withdrawal guide.

If TDS was already deducted

It isn't lost — the 10% appears in your Form 26AS / AIS, and you claim full credit (and any refund) when you file your return. If your total income for the year is below the taxable limit, you get the whole amount back.

Bottom line

Withdrawing after 5 years or an amount under ₹50,000? Forget Form 15G. Withdrawing ₹50,000+ with under 5 years' service? Submit Form 15G only if your yearly income is genuinely below the taxable limit — otherwise let the 10% be deducted and reclaim it in your ITR.