Non-Resident Indians (NRIs) have a doubt whether they need to fill Form 15G when withdrawing their Employees’ Provident Fund (EPF). The answer is yes, but only if they meet certain conditions.
Who Needs to Submit Form 15G?
NRIs need to submit Form 15G if:
- Their total PF balance is above ₹50,000.
- Their total service period is less than 5 years.
How NRIs Should Fill Form 15G
- Mention their residential status as “Non-Resident“ in Field Number 5.
- Fill in all other required details correctly.
TDS Deduction Rules for NRIs
- If an NRI submits Form 15G and their total income is below the taxable limit, then no TDS (Tax Deducted at Source) will be deducted from their PF withdrawal.
- If an NRI’s total income is above the taxable limit, 10% TDS will be deducted from their EPF amount.
Key Difference Between Indians and NRIs
The main difference between an Indian resident and an NRI while filling Form 15G is Field Number 5:
- Indian residents should mention “Resident” as their residential status.
- NRIs must mention “Non-Resident” as their residential status.
Conclusion:
If you are an NRI withdrawing your EPF, ensure you fill Form 15G correctly to avoid unnecessary TDS deductions. Paying attention to Field Number 5 is important to avoid mistakes. If your income is taxable, TDS will still be deducted, and you may need to file an Income Tax Return (ITR) to claim any refunds.