1. The Problem: Why does the EPFO deduct 10% to 30% TDS

EPFO deducts 10–30% TDS on withdrawal mainly to ensure income tax is collected in advance when you take money out early or without proper PAN details.

Basic reason

EPF withdrawal before 5 years is treated as taxable income under the Income Tax Act, so tax is collected at source as TDS.

This prevents people from avoiding tax on early withdrawals and aligns EPF withdrawals with normal income tax rules.

Why 10% vs 20–30%

10% TDS: When conditions are met for TDS (e.g., service less than 5 years and withdrawal over ₹50,000) and you provide your PAN.

About 20–30% (maximum marginal rate): When PAN is not provided, the law forces EPFO to deduct a much higher rate (around 30% plus applicable cess/surcharge) as a penalty and safeguard for revenue.

When there is no TDS

No TDS if service is 5 years or more, or withdrawal is ₹50,000 or less.

No TDS if you submit Form 15G/15H and your total income is below the taxable limit (so tax liability is actually nil).

So, EPFO does not keep this money; it only deducts TDS as per Income Tax rules to ensure correct tax is paid on early/taxable EPF withdrawals.

2. The Solution: How Form 15G acts as a self-declaration to tell the IT Department your income is below the taxable limit.

Form 15G is a self‑declaration you give to the payer (bank/EPFO etc.) stating that your total income for the year will be below the basic exemption limit, so your final tax payable will be zero.

Download Official Form 15G PDF

How Form 15G works as self‑declaration

In Form 15G you declare your estimated total income for the financial year and confirm it is below the taxable limit

Because you are stating that your tax liability will be nil, the payer is allowed under section 197A to not deduct TDS on the specified income (bank interest, EPF withdrawal, etc.).

It is a legal declaration: if you wrongly declare (actual income later crosses the limit), you are responsible for paying tax and possible penalties; the form does not exempt you from tax, only from TDS.

Benefit: getting the full amount (no TDS cut)

When you submit valid Form 15G with your EPF withdrawal/interest request, the payer can release the full amount to you without cutting 10%–30% TDS.

This improves cash flow: you get your full PF/interest now instead of waiting to claim a refund later through ITR if your income is actually below the taxable limit.

If you are genuinely under the taxable limit, using Form 15G avoids unnecessary TDS and the hassle of refund; if you are above the limit, you should NOT use Form 15G and let TDS be deducted normally.

3. Eligibility Can You Use Form 15G

You can use Form 15G only if you satisfy all these conditions together.

Basic eligibility for Form 15G

You are an Indian resident (not NRI).

You should have valid PAN.

Your age is below 60 years (otherwise Form 15H is used for seniors).

Your total estimated taxable income for the whole financial year is below the basic exemption

For FY 2025–26 (AY 2026–27), the basic exemption limits are:

• Age below 60 years:
  • Old regime: ₹2.5 lakh
  • New regime: ₹4 lakh
• Senior citizen (60 to <80 years):
  • Old regime: ₹3 lakh
  • New regime: ₹4 lakh
• Super senior citizen (80+ years):
  • Old regime: ₹5 lakh
  • New regime: ₹4 lakh

After including this interest/EPF withdrawal, your tax liability for the year is zero (no tax payable). Only then you are allowed to declare Form 15G.

You are an eligible person/entity: individual below 60, HUF, certain trusts; not a company, firm, LLP, or NRI.

If your total income crosses the exemption limit or you have any tax payable, you should not use Form 15G; TDS must be deducted normally and you can adjust/refund through ITR.

4. Common Income types that Qualify

You can give Form 15G for these kinds of incomes to avoid TDS deduction:

• Interest from bank FDs, RDs, savings accounts, corporate deposits, NCDs, etc.

• Interest from post office time deposits and other similar deposit schemes where TDS is applicable.

• EPF / PF withdrawal where TDS would otherwise be deducted (subject to EPF rules on service period and amount).

• Interest from NSS (National Savings Scheme) and some small savings where TDS may apply above threshold
• Certain other incomes where TDS is required, like life insurance maturity proceeds (non‑exempt), commission, rent, mutual fund income, etc., if payer allows Form 15G and your total income still stays below exemption limit.

5. When is the Right Time to Submit

For Form 15G, the “right time” is simply before TDS is deducted on that income. And you have met all eligibility criteria mentioned earlier in this post above.

General timing (banks, FDs, interest, etc.)

Best practice: submit Form 15G at the start of the financial year (around 1 April) to the bank or deduction so that no TDS is cut on interest during the year.

If you forgot, you can still submit it later in the year as soon as you realise, to stop further TDS on future interest; past TDS already deducted can only be claimed via ITR.

For EPF / PF withdrawal

Submit/upload Form 15G at the time of filing your EPF withdrawal claim (online in the UAN portal or with offline forms) if you are eligible and want to avoid TDS.

If you file the withdrawal without Form 15G, EPFO may deduct 10%–30% TDS where applicable; then your only option is to claim refund while filing your income tax return.

6. Step-by-Step Filling Guide (Part I)

Before filling make sure you have gathered all required documents to fill 15G form which make filling easy, error free and smooth.

Tip: Fill all the details in CAPITAL LETTER and as per your details available in PAN card.

Personal Details (With Example)

• Name of Assesse (Declarant) [FIELD NO 1]: RAGHAV MANU MISHRA
• PAN [FIELD NO 2]: DCF3409J
• Address [FIELD NO 6 to 12]: Address as in your valid address proof (i.e.  Adhaar)
• Email [FIELD NO 13]: ragavmm94@gmail.com
• Phone [FIELD NO 14]: Enter your valid phone no
• Tax under income tax act [FIELD NO 15]: NO (Tick on NO)
• Estimated income for which this declaration made [FIELD NO 16]: 230000 (Example enter only total EPF to be withdrawn, check EPF passbook pf section not pension)
• Total Income including previous year [FIELD NO 17]: 47000 (i.e. previous year + [FIELD NO 16] = 240000 +230000)
• Details of form 15G [FIELD NO 18]: Optional or Leave blank.

7. Details of Income for which Declaration is Made [FIELD NO 19]: 

• Identification Number: Enter UAN number.
• Nature of Income: EPF Withdrawal.
• Section of Act: Mention Section 192A (Optional)
• Amount of Income The total amount: Total EPF withdrawing amount only (Optional)

8. The Self declaration, Verification & Signature

User is declaring the info is true under penalty of law with full name and valid signature as same as in PAN detail. Previous year ending on first blank space 31/March/2025, Relevant to assessment year of 2025-26, Place, Date and Signature of declarant.

After filling the necessary details make sure bank details, Adhaar, nominee added to EPF account in UAN Portal, then upload filled 15G form to request withdrawal. Applicant also can visit nearest EPF office for the same.

9. Common Reasons EPF Withdrawal for Rejection

1. Mismatch in PAN details,
2. Mismatch in Adhaar, Bank details and PAN, (Name should same in three)
3. Bank Seeding and should be approved by bank.
4. Incomplete or cropped or partially visible cancelled check.
5. Selecting the wrong Assessment Year.
   1. Tip: The AY/FY Distinction: For FY 2024-25, the Assessment Year is 2025-26
6. Amount of withdrawal not matching the claim.
7. Form 15G uploaded in the 15H slot (or vice versa).

10. Frequently Asked Questions (FAQ )

We hope this step-by-step breakdown makes your EPF claim smoother and faster. Did we miss a specific question you had? Let us know in the comments or via our Request Form, and help us make Fillable.in the most helpful document library in India!” If this guide helped you save on TDS today, please share it with a colleague or friend who is also planning their exit.