EPFO Replaces Forms 15G and 15H with Form 121 for EPF TDS Exemption

The Employees’ Provident Fund Organisation (EPFO) has clarified that EPF members must use Form 121 instead of Forms 15G and 15H to claim exemption from tax deducted at source (TDS) from Tax Year 2026–27. The change follows the implementation of the Income Tax Act, 2025, and applies from April 1, 2026.

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EPFO said that Form 121 must be submitted to claim TDS exemption from tax year 2026-27. The new form combines the two earlier declarations into a single format for eligible taxpayers seeking non-deduction of TDS on specified income, including qualifying Employees’ Provident Fund (EPF) withdrawals.

When Is TDS Deducted on EPF Withdrawals?

Under Section 192A of the Income Tax Act, 2025, TDS may apply when an employee withdraws EPF savings before completing five years of continuous service. TDS generally applies when the taxable withdrawal exceeds ₹50,000, subject to the applicable rules.

Employees planning to withdraw their PF savings should check their service period, withdrawal amount and estimated total income before submitting a declaration for TDS exemption.

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Who Can Submit Form 121?

Form 121 is a self-declaration under the Income Tax Rules, 2026. Through this form, an eligible taxpayer declares that the tax payable on their estimated total income for the relevant tax year will be nil.

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The form replaces the earlier age-based distinction between Form 15G, generally used by eligible resident individuals below 60 years, and Form 15H, used by eligible resident senior citizens. The underlying eligibility conditions continue to apply under the new framework.

Submitting Form 121 does not automatically make an EPF withdrawal tax-free. Members must meet the prescribed eligibility conditions, and the declaration should be submitted only when they qualify.

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What EPF Members Should Know

The shift to Form 121 is part of the move to a common tax compliance framework under the Income Tax Act, 2025. According to the Income Tax Department, the consolidated form is intended to reduce confusion and simplify the submission and tracking of declarations.

EPF members planning withdrawals from April 2026 onwards should use Form 121 where applicable and check the latest instructions issued by EPFO and the Income Tax Department.

Final Comments

The replacement of Forms 15G and 15H with Form 121 changes the process for claiming TDS exemption on eligible EPF withdrawals.

Employees should not submit the declaration solely to avoid deduction; they should first confirm their eligibility and understand the tax treatment of their withdrawal.