Employees planning to withdraw money from their Employees’ Provident Fund (EPF) accounts should be aware of a change in tax documentation introduced from April 1, 2026. Under the revised system, Form 121 replaces Forms 15G and 15H for eligible individuals seeking exemption from tax deducted at source (TDS) on specified income, including qualifying provident fund withdrawals.
The Employees’ Provident Fund Organisation (EPFO) has informed members about the change, which applies from the financial year 2026-27. The new form combines the two earlier declarations into a single document, removing the need to choose a form based on age.
However, the introduction of Form 121 does not make every EPF withdrawal tax-free. Members must meet the applicable income tax conditions to qualify for TDS relief, and the tax treatment of a withdrawal depends on the relevant rules and circumstances.
Form 121 Replaces Forms 15G and 15H
Previously, eligible individuals below 60 years of age could submit Form 15G to request non-deduction of TDS. Senior citizens who met the prescribed conditions could use Form 15H.
From FY 2026-27, both declarations have been replaced by Form 121. The change creates a single declaration process for eligible applicants, regardless of the age-based distinction used under the earlier system.
Through Form 121, individuals can declare that their estimated total income for the relevant financial year meets the conditions for non-deduction of TDS under the applicable income tax provisions.
Eligible EPF members may submit the form when seeking TDS relief on qualifying withdrawals. However, filing the declaration alone does not guarantee that tax will not be deducted. Applicants must satisfy all applicable requirements.
Who Can Submit Form 121 for EPF Withdrawal?
Form 121 is intended for individuals who meet the eligibility conditions prescribed under the relevant income tax provisions. Whether an EPF member qualifies depends on their estimated annual income, expected tax liability and the rules applicable to the withdrawal.
Before submitting the declaration, members should review their total estimated income for the financial year and confirm that they satisfy the prescribed requirements.
It is also important to understand that the tax treatment of EPF withdrawals can vary depending on factors such as the reason for withdrawal, the period of service and the applicable income tax rules.
If a withdrawal is taxable, submitting an incorrect or ineligible declaration will not remove the underlying tax liability. Members should therefore verify their eligibility before requesting non-deduction of TDS.
Form 121 Valid for One Financial Year Only
Form 121 applies only to the financial year for which the declaration is submitted. Individuals who want to claim TDS relief in a subsequent year must file a fresh declaration, provided they continue to meet the eligibility conditions.
EPF members planning a withdrawal should check their tax position and ensure that the correct declaration is submitted for the relevant financial year.
The replacement of Forms 15G and 15H with Form 121 marks a change in the documentation process for eligible taxpayers. Understanding the new requirements can help members avoid filing errors and make informed decisions about their provident fund withdrawals.
Disclaimer: This article is intended for general informational purposes only and should not be considered tax, financial or legal advice. Eligibility for TDS relief and the tax treatment of EPF withdrawals depend on the applicable income tax provisions and individual circumstances. Members should consult the latest official EPFO and Income Tax Department guidance or seek advice from a qualified tax professional before making tax-related decisions.