EPF TDS Exemption: Form 121 Replaces Forms 15G and 15H From Tax Year 2026-27
EPF members seeking exemption from tax deducted at source on eligible withdrawals will need to submit Form 121 instead of Forms 15G or 15H from tax year 2026-27. Here is what changes and who may qualify.
Employees planning to withdraw money from their Employees’ Provident Fund (EPF) savings will need to follow a revised process to claim exemption from tax deducted at source (TDS) from tax year 2026-27.
The Employees’ Provident Fund Organisation (EPFO) has clarified that Forms 15G and 15H will no longer be accepted for this purpose. Members must instead submit Form 121, introduced under the Income Tax Act, 2025, subject to the applicable eligibility conditions.
When Is TDS Deducted on EPF Withdrawals?
Under Section 192A of the Income Tax Act, 2025, TDS may apply when an employee withdraws EPF money before completing five years of continuous service. The applicable rules also consider the withdrawal amount and other prescribed conditions.
Members should check their service history and the amount they plan to withdraw before submitting a declaration.
What Is Form 121?
Prescribed under the Income Tax Rules, 2026, Form 121 allows eligible taxpayers to declare that their estimated tax liability for the relevant tax year is nil. If the conditions are satisfied, the deductor may make eligible payments without deducting TDS.
However, submitting the form does not automatically guarantee exemption. Applicants must meet the prescribed requirements and should provide accurate information.
What Should EPF Members Do?
Before withdrawing their savings, members should verify whether they have completed five years of service, whether the withdrawal crosses the applicable threshold and whether they qualify to submit Form 121.
Those who do not meet the eligibility criteria may remain liable for TDS. Members should check the latest EPFO and Income Tax Department guidance before filing their claims.
The key change is procedural: Form 121 replaces Forms 15G and 15H for eligible EPF TDS exemption declarations from tax year 2026-27.
