EPF TDS Exemption: Form 121 to Replace Forms 15G and 15H From Tax Year 2026-27

EPFO has announced a new declaration process for claiming TDS exemption on eligible EPF withdrawals, with Form 121 replacing Forms 15G and 15H from tax year 2026-27.

By All India Story

9 Oct 2026, 3:16 PM IST 2 min read

Documents and financial records representing EPF withdrawal and tax deduction rules. — EPF members planning withdrawals should understand the new Form 121 declaration process for TDS exemption.

The EPF TDS exemption process is set to change from tax year 2026-27, with the Employees’ Provident Fund Organisation (EPFO) clarifying that members will need to submit Form 121 instead of Forms 15G and 15H to claim exemption from tax deducted at source (TDS) on eligible withdrawals.

According to EPFO, the change follows the Income Tax Act, 2025, and the Income Tax Rules, 2026. Members who previously relied on Forms 15G or 15H will need to familiarise themselves with the new declaration before applying to withdraw their provident fund savings.

Form 121 allows eligible taxpayers to declare that the tax payable on their estimated total income for the relevant tax year is nil. If the applicable conditions are satisfied, the payer may make specified payments without deducting TDS.

However, submitting the form does not automatically guarantee an exemption. Eligibility conditions must be met before the declaration is made.

When Is TDS Deducted on EPF Withdrawals?

Under Section 192A of the Income Tax Act, 2025, TDS may apply when an employee withdraws EPF savings before completing five years of continuous service.

The amount being withdrawn and the employee’s service history are important factors when determining whether TDS applies. Members should review these details before submitting a declaration.

According to the information provided in the report, employees should also check whether their withdrawal exceeds ₹50,000 and whether their estimated total income qualifies them to submit Form 121.

What Should EPF Members Do Before Withdrawing?

EPF members planning a withdrawal from tax year 2026-27 should take the following steps:

Check service history: Confirm whether five years of continuous service have been completed.
Review the withdrawal amount: Determine whether the amount crosses the applicable threshold.
Check income eligibility: Ensure the estimated total income meets the conditions for Form 121.
Use the correct declaration: Submit Form 121 where eligible instead of Forms 15G or 15H.

Those who do not qualify for the declaration may remain liable for TDS under the applicable rules.

The key change is the replacement of Forms 15G and 15H with Form 121 for eligible EPF TDS exemption claims from tax year 2026-27. Members should consult the official EPFO and Income Tax Department websites for the latest instructions before filing their withdrawal requests.