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 simplifies how members can claim TDS exemptions on their provident fund withdrawals.
The new Form 121 replaces the older Forms 15G and 15H, streamlining the process. It’s a self-declaration form that allows members to easily claim TDS exemptions on both EPF withdrawals and interest income. With this, the EPFO aims to enhance digital services and improve compliance processes.
Key updates include:
- The launch of E-PRAAPTI, a new portal designed to help members trace and link old or inactive PF accounts.
- E-PRAAPTI will enable users to access legacy accounts without needing employer intervention.
- Current minimum pension under EPS-95 is ₹1,000 per month, with discussions underway for an increase to ₹7,500 as demanded by labour unions.
- The Central government contributes over ₹950 crore annually to maintain this minimum pension.
Labour Minister Mansukh Mandaviya emphasized the importance of E-PRAAPTI, stating that it will empower subscribers by allowing them to manage their accounts more effectively. The aim is clear — make accessing funds and benefits easier for everyone involved.
Yet, while these changes are promising, there’s uncertainty surrounding the timeline for implementing the proposed pension increases. Discussions are ongoing, but no definitive decision has been announced yet.
As these updates unfold, they signal a considerable shift in how members interact with their provident funds. The transition to digital services like E-PRAAPTI could redefine member engagement with the Employees’ Provident Fund and Pension Scheme in the coming years.
