The EPFO’s introduction of a unified Form 121 effective April 1, 2026, marks a significant shift in the tax exemption process for EPF withdrawals. This new self-declaration form will streamline claims for TDS exemptions on both EPF withdrawals and interest income.
Key changes:
- Forms 15G and 15H have been replaced by Form 121.
- The new form simplifies the tax exemption claims process for members.
- Additionally, EPFO plans to launch a portal named E-PRAAPTI to assist members in managing their PF accounts.
E-PRAAPTI will enable users to access legacy accounts and complete UAN seeding without needing employer intervention. Labour Minister Mansukh Mandaviya stated, “The proposed portal will enable subscribers to access legacy accounts, update profiles and complete UAN seeding without any intervention by the employer.” This initiative aims to enhance digital services within the Employees’ Provident Fund framework.
On another front, discussions are ongoing regarding an increase in the minimum pension under the Employees’ Pension Scheme (EPS-95). Currently set at ₹1,000 per month, labour unions advocate for a rise to ₹7,500. The Central government contributes over ₹950 crore annually to maintain the current minimum pension level.
The outcome of these discussions remains uncertain, but officials have indicated that a decision could be announced soon. These developments reflect ongoing efforts to improve compliance processes and provide better support for provident fund subscribers.
