The 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 how employees can claim TDS exemptions on their provident fund withdrawals and interest income.
Previously, individuals had to navigate separate Forms 15G and 15H, which added complexity to an already cumbersome process. Now, with Form 121, members can self-declare their eligibility for TDS exemptions, simplifying compliance and enhancing accessibility.
Key features of the new system:
- The unified Form 121 replaces Forms 15G and 15H.
- It allows for self-declaration regarding TDS exemptions on EPF withdrawals.
- The new portal E-PRAAPTI will help members trace and link old or inactive PF accounts.
The launch of E-PRAAPTI is particularly noteworthy. Labour minister Mansukh Mandaviya stated that this portal will enable subscribers to access legacy accounts and complete UAN seeding without employer intervention. This could significantly reduce delays and improve the overall user experience.
As these discussions unfold, no timeline has been shared for when any changes might take effect. Yet, the demand for a pension increase reflects broader concerns about financial security among retirees.
