How to Avoid TDS on EPF Withdrawals: Form 15G and 15H Explained

When withdrawing from your EPF account before completing five years of service, Tax Deducted at Source (TDS) becomes a major factor if the amount exceeds Rs 50,000. If your PAN is linked to your UAN, TDS is deducted at a rate of 10%. However, without a linked PAN, the rate jumps to the maximum marginal rate of over 30%. To prevent this deduction, individuals whose total income is below the taxable limit can submit Form 15G (or Form 15H for senior citizens). Submitting these forms declares that your tax liability is zero, allowing the EPFO to process your full withdrawal without deducting TDS, thus preserving your savings.