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 aims to streamline compliance processes and enhance access for provident fund subscribers.
Form 121 serves as a self-declaration form for claiming TDS exemption on EPF withdrawals and interest income. The previous Forms 15G and 15H will be replaced by this new format, simplifying the withdrawal process for members.
Key updates include:
- The launch of a new portal called E-PRAAPTI to help members trace and link old or inactive PF accounts.
- E-PRAAPTI will allow users to access legacy accounts without employer intervention.
- The minimum pension under EPS-95 is currently set at ₹1,000 per month, with labour unions demanding an increase to ₹7,500.
The Central government contributes over ₹950 crore annually to maintain the minimum pension level. Discussions are currently underway regarding the potential increase in this minimum pension amount.
Labour minister Mansukh Mandaviya stated, “The proposed portal, called E-PRAAPTI, will enable subscribers to access legacy accounts, update profiles and complete UAN seeding without any intervention by the employer.” This initiative reflects a broader push towards digital services within the Employees’ Provident Fund framework.
While these changes promise significant improvements in the management of provident funds, no specific timeline has been shared regarding when discussions on pension increases will conclude. Stakeholders await further developments on this front.
