EPF TDS Exemption Rules Change, Form 121 Replaces Forms 15G And 15H From Tax Year 2026–27

Mumbai: Employees Provident Fund Organisation (EPFO) members seeking exemption from tax deducted at source (TDS) must use Form 121 from tax year 2026–27. Forms 15G and 15H will no longer be valid for claiming the exemption.

The change follows the implementation of the Income-tax Act, 2025, and the Income-tax Rules, 2026. EPFO has informed members about the revised requirement through an official communication.

Unified Form

Form 121 replaces the two separate self-declaration forms used under the earlier tax framework. Form 15G was meant for eligible resident individuals below 60 years and certain other eligible persons, while Form 15H was used by resident senior citizens aged 60 years or above.

The eligibility conditions broadly remain unchanged. However, eligible taxpayers must now submit the consolidated Form 121 to request non-deduction of TDS on specified income, including applicable EPF withdrawals.

According to the Income Tax Department, Form 121 is a statutory declaration through which taxpayers confirm that their estimated total income for the relevant tax year will result in nil tax liability. The form should ideally be furnished before the income is credited or paid.

Members Action

EPFO members planning to withdraw their provident fund balance should check whether TDS provisions apply to their claim. If they are eligible for non-deduction, they must submit Form 121 instead of Forms 15G or 15H.

Members should ensure that the declaration is complete and contains correct PAN, income and tax-liability details. Filing the form does not automatically make every withdrawal tax-free; the member must satisfy the prescribed eligibility conditions.

New Framework

Under Section 393(6) of the Income-tax Act, 2025, eligible recipients may declare that tax on their estimated total income is nil. The unified form is intended to remove confusion over selecting Form 15G or Form 15H and streamline TDS compliance.

The revised system applies from tax year 2026–27, beginning on April 1, 2026. Members should avoid using the old forms for withdrawals relating to this period. (EPFO circular, Income Tax Department FAQs)