The EPFO’s introduction of a unified Form 121 marks a significant shift in the tax exemption process for EPF withdrawals. This change will simplify compliance for many.
The EPFO’s introduction of a unified Form 121 marks a significant shift in the tax exemption process for EPF withdrawals, effective from April 1, 2026. This change aims to simplify how members claim TDS exemptions on their EPF withdrawals and interest income.
Previously, individuals had to navigate multiple forms—Forms 15G and 15H—to secure their tax exemptions. Now, with Form 121, the process is streamlined into a single self-declaration form. Why does this matter? Because it reduces administrative burdens and enhances user experience.
Key facts about the new updates:
- Form 121 replaces Forms 15G and 15H.
- The new portal, E-PRAAPTI, will assist members in tracing and linking old or inactive PF accounts.
- E-PRAAPTI will allow users to access legacy accounts without employer intervention.
The current minimum pension under the Employees’ Pension Scheme (EPS-95) stands at ₹1,000 per month. Labour unions argue that this amount is insufficient and are demanding an increase to ₹7,500. The Central government contributes over ₹950 crore annually to maintain this minimum pension level.
Discussions about potentially raising the minimum pension are ongoing. Labour Minister Mansukh Mandaviya stated, “Discussions related to the proposal are underway, and a decision could be announced soon.” This could have widespread implications for millions of subscribers relying on this pension.
As EPFO continues to enhance its digital services through initiatives like Aadhaar-based authentication, members can expect more accessible and efficient processes in managing their provident fund accounts. However, uncertainties remain regarding the timeline for implementing these changes fully.
