Provident Fund withdrawal for two services, with none individually above 5 years. Form 15G.

Hi Sir, 

I wanted to check and confirm regarding provident fund withdrawal, I did 2 jobs

  1. 2017 December to 2022 June: 4 years & 6 months total.
  2. 2022 June to 2023 September: 1 year 3 months.

My total PF is 12,97,992, when i applied for withdrawal, they credited 353,750 in my account, out of which they deducted tax of 39,804 & rest balance is 9,04,436. This was the amount i transferred from my erstwhile JOB to latest one which i left in 2023. Could anyone assist here, if i am eligible to further taxation or can i file form 15G & apply for the rest of my PF withdrawal. As total service is above 5 years if i include both of my Job. I am confused unable to find any solution for the same. 
Please please assist i need the funds for emergency.

Replies (2)
Quick Summary
This discussion clarifies Provident Fund (PF) withdrawal rules, particularly concerning tax implications and the use of Form 15G. The user has a total service period of over 5 years across two jobs, but tax was deducted on their initial withdrawal. The advice provided explains that having over 5 years of service generally makes PF withdrawals tax-free. It suggests contacting the PF office to clarify the tax deduction and exploring the possibility of filing Form 15G for future withdrawals to avoid Tax Deducted at Source (TDS). If excess tax was deducted, claiming a refund during income tax filing is also recommended.

To determine if you're eligible for further taxation or can file Form 15G for the rest of your PF withdrawal, let's break down the rules:

 Taxation on PF Withdrawal -

*Tax-Free Withdrawal*: If you've completed 5 continuous years of service with the same employer or have accumulated 5 years of service across multiple employers, your PF withdrawal is tax-free. -

 *Taxable Withdrawal*: If you haven't completed 5 continuous years of service, a portion of your PF withdrawal might be taxable. Your Situation -

*Total Service Period*: You've worked for approximately 5 years and 9 months (4 years 6 months + 1 year 3 months), which meets the 5-year threshold. - 

*Transfer of PF Balance*: You transferred your PF balance from your previous job to your latest one, which suggests that your service periods might be considered continuous for PF purposes. Form 15G and Tax Implications - 

*Form 15G*: If you're 60 years or older or meet specific conditions, you can file Form 15G to declare that your income is below the taxable limit, and the bank/PF office won't deduct TDS. - 

*Tax Implications*: Given that your total service period exceeds 5 years, your PF withdrawal might be tax-free. However, the tax deduction on your initial withdrawal might be due to the employer's or PF office's understanding of your service period or other factors. Next Steps - 

*Consult the PF Office*: Reach out to the PF office or your previous employers to clarify how your service periods were considered and whether the tax deduction was correct. - 

*File Form 15G (if applicable)*: If you're eligible, file Form 15G for future PF withdrawals to avoid TDS. - 

*Claim Refund (if applicable)*: If excess tax was deducted, you can claim a refund while filing your income tax return [1][2]. Given your emergency situation, it's essential to resolve this matter quickly. 

Consulting with a tax professional or the PF office directly might help you get the necessary clarification and assistance.

To determine if you're eligible for further taxation or can file Form 15G for the rest of your PF withdrawal, let's break down the rules:

 Taxation on PF Withdrawal -

*Tax-Free Withdrawal*: If you've completed 5 continuous years of service with the same employer or have accumulated 5 years of service across multiple employers, your PF withdrawal is tax-free. -

 *Taxable Withdrawal*: If you haven't completed 5 continuous years of service, a portion of your PF withdrawal might be taxable. Your Situation -

*Total Service Period*: You've worked for approximately 5 years and 9 months (4 years 6 months + 1 year 3 months), which meets the 5-year threshold. - 

*Transfer of PF Balance*: You transferred your PF balance from your previous job to your latest one, which suggests that your service periods might be considered continuous for PF purposes. Form 15G and Tax Implications - 

*Form 15G*: If you're 60 years or older or meet specific conditions, you can file Form 15G to declare that your income is below the taxable limit, and the bank/PF office won't deduct TDS. - 

*Tax Implications*: Given that your total service period exceeds 5 years, your PF withdrawal might be tax-free. However, the tax deduction on your initial withdrawal might be due to the employer's or PF office's understanding of your service period or other factors. Next Steps - 

*Consult the PF Office*: Reach out to the PF office or your previous employers to clarify how your service periods were considered and whether the tax deduction was correct. - 

*File Form 15G (if applicable)*: If you're eligible, file Form 15G for future PF withdrawals to avoid TDS. - 

*Claim Refund (if applicable)*: If excess tax was deducted, you can claim a refund while filing your income tax return [1][2]. Given your emergency situation, it's essential to resolve this matter quickly. 

Consulting with a tax professional or the PF office directly might help you get the necessary clarification and assistance.

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