Is TDS Applicable on PF If Total Service is Above 5 Years?

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If your total service is more than 5 years, you don’t need to submit Form 15G, and no TDS will be deducted from your PF withdrawal. Many EPF members have a common doubt:

“My PF balance is more than ₹50,000, but my total service is also more than 5 years. Should I submit Form 15G?”

The answer is NO. You don’t need to submit Form 15G because, according to EPF rules, your PF amount becomes tax-free after 5 years of continuous service.

Example :

Imagine an employee has ₹1,00,000 in his PF account and has worked in multiple companies for a total of 7 years. In this case:

  • He does not need to submit Form 15G.
  • His total service (including all companies) is more than 5 years.
  • His PF withdrawal will be tax-free.

Important Rule: Transfer Your PF

To ensure your total service is counted correctly:

  • Always transfer your PF from your old company to your new company when you switch jobs.
  • If your PF is not transferred, each job’s PF account will be treated separately, and your service period may not be considered as continuous.

What Happens If You Submit Form 15G Incorrectly?

If you mistakenly submit Form 15G when your service is above 5 years, it won’t affect your claim, but it is unnecessary.

However, if you don’t submit Form 15G when required, TDS will be deducted as follows:

  • 10% TDS if PAN is linked to your PF account.
  • 34.608% TDS if PAN is not linked to your PF account.

When Should You Submit Form 15G?

✅ Submit Form 15G if:

  • Your PF balance is more than ₹50,000, and
  • Your total service is less than 5 years.

❌ Do not submit Form 15G if:

  • Your PF amount is less than ₹50,000, even if your service is below 5 years.
  • Your service is 5 years or more, regardless of the amount.

Understanding when to submit Form 15G can save you from unnecessary TDS deductions. If your service is more than 5 years, you can withdraw your PF tax-free without submitting Form 15G. However, if your service is less than 5 years and have PF amount more than 50,000 Rs ensure you submit Form 15G to avoid TDS deductions. Always check your total service period and transfer your PF when changing jobs to maximize your benefits.

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