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Major change in TDS rules for PF withdrawals announced by EPFO
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News18•11-10-2026, 14:29
Major change in TDS rules for PF withdrawals announced by EPFO
- •The Employees' Provident Fund Organisation announced that Form 15G and Form 15H will no longer be accepted for claiming TDS exemption on PF withdrawals starting from the financial year 2026-27.
- •PF account holders will now need to submit Form 121 under the Income-Tax Act, 2025 to claim TDS exemption.
- •Previously, taxpayers used Form 15G or Form 15H based on their age and eligibility, but these forms are now being replaced to simplify the rules.
- •Form 121 allows eligible individuals whose estimated annual income is below the taxable limit to request that TDS not be deducted.
- •Having a valid PAN card is mandatory to utilize this voluntary facility according to EPFO guidelines.
Key Questions Answered
Starting from the financial year 2026-27, Forms 15G and 15H are no longer accepted for claiming TDS exemption on PF withdrawals, and account holders must now submit the consolidated Form 121 under the Income-Tax Act, 2025.
Form 121 can be filed voluntarily by resident individuals whose estimated total annual income does not fall within the taxable limit and whose tax liability for the financial year is expected to be nil.
No, submitting Form 121 does not automatically make your PF withdrawal tax-free; it simply allows eligible low-income individuals to request that TDS not be deducted from their payment.
