New Form 121 Replaces Forms 15G and 15H for EPF TDS Exemptions Starting Tax Year 2026-27

New Delhi: Employees withdrawing money from their Employees’ Provident Fund will need to follow a revised process to claim exemption from tax deducted at source. The Employees’ Provident Fund Organisation has clarified that Forms 15G and 15H will no longer be accepted for claiming EPF TDS exemptions starting from the tax year 2026-27. Members will instead be required to submit Form 121, in alignment with the Income Tax Act, 2025.

In a communication shared on social media platform X, the EPFO confirmed the transition to Form 121. This adjustment means that EPF members who previously relied on Form 15G or Form 15H must familiarize themselves with the new declaration form to prevent unnecessary tax deductions on their savings.

Under Section 192A of the Income Tax Act, 2025, TDS can be levied when an employee withdraws funds from their EPF account prior to completing five years of continuous service. This service duration remains a critical factor in determining whether a premature withdrawal attracts tax deductions.

Form 121 functions as a specific declaration prescribed under the Income Tax Rules, 2026. Data from the Income Tax Department portal indicates that taxpayers use this document to formally declare that their estimated total income for the specific financial year results in a nil tax liability.

Upon submission of this declaration, the deductor may be authorized to disburse specified payments without withholding tax, given that all statutory criteria are satisfied. For provident fund subscribers, Form 121 serves as the mechanism to request a TDS exemption on qualifying withdrawals, though approval is contingent on meeting all underlying eligibility mandates.

Individuals planning to access their retirement savings should evaluate several factors before filing their paperwork. They need to verify their total continuous service period, determine if the withdrawal sum crosses Rs 50,000, and ensure their projected annual income justifies submitting Form 121.

Submissions should only be made if the individual genuinely satisfies the legal prerequisites for the exemption. Members who fall short of these conditions will remain subject to standard tax deduction rules. Subscribers are advised to consult the latest guidelines provided on the official EPFO and Income Tax Department platforms prior to filing withdrawal claims.