The Employees’ Provident Fund Organization (EPFO) has recently made a significant change: effective April 1, 2026, it will replace Forms 15G and 15H with a unified Form 121. This new form simplifies the tax exemption process for EPF withdrawals, streamlining compliance for millions of employees.
Form 121 serves as a self-declaration form that allows members to claim TDS exemption on their EPF withdrawals and interest income. This shift is part of a broader strategy to enhance digital services and improve member accessibility within the Employees’ Provident Fund framework.
Key facts about the new changes:
- The minimum pension under the Employees’ Pension Scheme (EPS-95) is currently set at ₹1,000 per month.
- Labour unions are advocating for an increase in this minimum pension to ₹7,500.
- The Central government contributes over ₹950 crore annually to maintain the current minimum pension.
- Discussions are ongoing regarding a potential increase in the minimum pension under EPS-95.
- EPFO is set to launch a new portal named E-PRAAPTI to help members trace and link old or inactive PF accounts.
Labour Minister Mansukh Mandaviya highlighted that E-PRAAPTI will allow users to access legacy accounts and complete UAN seeding without employer intervention. This initiative aims to further ease the process for subscribers, providing them with greater control over their retirement savings.
While these updates promise significant improvements, uncertainties linger. The timeline for implementing some of these changes remains unclear, particularly regarding the discussions about increasing the minimum pension. As more details emerge, stakeholders will undoubtedly keep a close watch on how these developments unfold.
