EPF withdrawal rules: Form 121 replaces Forms 15G and 15H from April 2026

Employees planning to withdraw money from their Employees’ Provident Fund (EPF) accounts will need to familiarise themselves with a change in the tax documentation process. From the financial year 2026-27, Form 121 will replace Forms 15G and 15H for eligible individuals seeking exemption from tax deducted at source (TDS) on specified income, including eligible provident fund withdrawals.

The Employees’ Provident Fund Organisation (EPFO) has informed its members of the change, which took effect on April 1, 2026. The new form is intended to simplify the process by removing the need to submit different declarations based on age.

However, the introduction of Form 121 does not mean that all provident fund withdrawals will automatically become tax-free. Members must meet the applicable eligibility conditions to claim relief from TDS.

Previously, individuals below 60 years of age who met the prescribed conditions could submit Form 15G to request non-deduction of TDS. Eligible senior citizens used Form 15H for the same purpose.

Under the revised framework, both forms have been replaced by a single declaration, Form 121. This removes the distinction between the two forms based on the applicant’s age and is expected to make tax compliance more straightforward for eligible taxpayers.

The new form allows individuals to declare that their estimated total income for the relevant financial year will not result in any tax liability, subject to the conditions prescribed under the applicable income tax provisions.

Eligible EPF members can submit the declaration to seek relief from TDS on qualifying withdrawals. The declaration must meet the applicable requirements, and submitting the form does not guarantee exemption if the individual does not satisfy the prescribed conditions.

Form 121 is intended for individuals who qualify under the relevant tax provisions and whose estimated tax liability meets the prescribed criteria.

Before submitting the form, EPF members should assess their estimated annual income and determine whether they meet the applicable eligibility requirements. They should also check the conditions governing TDS on provident fund withdrawals.

The tax treatment of a PF withdrawal depends on factors such as the circumstances of withdrawal, the period of service and the applicable income tax rules. Consequently, a declaration seeking non-deduction of TDS should not be confused with an exemption from the underlying tax liability.

If a withdrawal is taxable, submitting an ineligible or incorrect declaration will not automatically eliminate the tax obligation.

Another important aspect of Form 121 is its limited validity. The declaration applies only to the relevant tax year.

Individuals who wish to claim the benefit in a subsequent financial year must submit a new declaration, provided they continue to meet the eligibility criteria.

EPF members should therefore review their tax position before making a withdrawal and ensure that the correct form is submitted for the relevant year.

The transition to Form 121 marks a change in the documentation required for eligible taxpayers seeking TDS relief. Members should verify the latest EPFO instructions and applicable income tax provisions before relying on the new form to avoid tax deductions on their provident fund withdrawals.

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