EPFO PF Withdrawal New Rule 2026: Employees planning to withdraw money from their Provident Fund (PF) accounts should be aware of an important change reported in the documentation required to claim relief from Tax Deducted at Source (TDS).

According to an October 11, 2026 report, the Employees' Provident Fund Organisation (EPFO) has introduced a revised declaration process under which Form 121 will replace Forms 15G and 15H for eligible PF withdrawal TDS declarations from tax year 2026–27.

Previously, eligible account holders had to select Form 15G or Form 15H depending on their age and applicable tax conditions. The new system is intended to simplify this process by introducing a common declaration form.

However, the change does not mean that every PF withdrawal will become tax-free. The applicable eligibility requirements and income tax rules will continue to determine whether TDS relief is available.

What Has Changed in EPFO PF Withdrawal Rules?

The reported change concerns the declaration submitted by eligible taxpayers to request non-deduction of TDS.

Under the earlier system, two separate forms were used:

• Form 15G: Generally intended for eligible individuals below 60 years of age and certain other eligible taxpayers.
• Form 15H: Intended for eligible resident senior citizens aged 60 years or above.

According to the report, these forms will be replaced by Form 121 for the relevant declarations under the Income-tax Act, 2025.

This change is expected to reduce confusion among PF account holders who previously had to determine which form applied to them.

It is important to understand that Form 121 is a tax declaration document. It does not replace the regular EPFO forms or online procedures used to submit a PF withdrawal claim.

Form 121 vs Form 15G and 15H: Key Differences

The introduction of a common form is primarily a procedural change. It should not be confused with a general exemption from income tax on PF withdrawals.

Who Can Use Form 121?

Form 121 is intended for taxpayers who satisfy the prescribed conditions for submitting a declaration requesting non-deduction of TDS.

According to the supplied report, eligibility depends on the individual's estimated tax liability and other applicable requirements.

A valid Permanent Account Number (PAN) is also important for tax-related declarations.

Simply submitting Form 121 does not guarantee that TDS will not be deducted.

Employees whose circumstances do not meet the prescribed conditions cannot claim relief merely by filing the declaration.

Providing incorrect income information may also result in tax compliance issues.

When Is TDS Deducted on PF Withdrawals?

Under the established EPF tax framework, TDS has generally applied to certain withdrawals made before completing five years of qualifying continuous service, subject to the prescribed conditions.

Under the earlier provisions, the commonly applicable withdrawal threshold was ₹50,000.

However, not every withdrawal made before five years is necessarily taxable, and exceptions may apply in specific circumstances.

For example, qualifying transfers between recognised provident fund accounts may receive different treatment.

The tax position may also depend on the reason for leaving employment and the employee's service history.

Account holders should verify the provisions applicable to the relevant tax year before withdrawing their funds.

Does Form 121 Make PF Withdrawals Tax-Free?

No. There is an important difference between avoiding TDS and being exempt from income tax.

TDS is the amount deducted at the time of payment under applicable tax provisions.

The final tax liability is determined separately based on the relevant income tax rules and the taxpayer's circumstances.

A withdrawal may qualify for tax exemption under the law without requiring a TDS declaration.

Conversely, a withdrawal may be taxable even if tax was not deducted at the time of payment.

Therefore, employees should not assume that filing Form 121 automatically removes their tax obligations.

Is Form 121 Mandatory for All EPFO Members?

The reported rule does not require every EPFO member to submit Form 121.

The form is relevant to eligible individuals who need to request non-deduction of TDS on a qualifying payment.

Employees whose withdrawals are not subject to TDS may not need to submit this declaration.

Similarly, employees who do not meet the legal requirements cannot use the form to obtain an exemption.

The correct documentation will depend on the type of withdrawal, service history, amount involved, and applicable tax provisions.

What Should PF Account Holders Do Before Withdrawing Money?

Employees should check their PAN details, employment records, and EPFO account information before initiating a withdrawal.

They should also confirm whether their withdrawal is subject to TDS and whether they qualify to submit a non-deduction declaration.

If a declaration is required, the latest prescribed form should be used for the relevant tax year.

Members should rely on official EPFO and Income Tax Department instructions rather than outdated forms circulated on unofficial websites.

Incorrect documentation can create delays or tax-related complications.

EPFO PF Withdrawal Rules 2026: Final Takeaway

The reported replacement of Forms 15G and 15H with Form 121 is intended to make the TDS declaration process simpler for eligible PF account holders.

Instead of choosing between two separate forms, qualifying taxpayers would use a common declaration under the updated tax framework.

However, Form 121 does not make all PF withdrawals tax-free, and eligibility requirements remain important.

Employees planning to withdraw their provident fund savings should verify the latest official instructions and understand the tax implications before submitting a claim.

Disclaimer: This article is based on the supplied October 11, 2026 news report. The reported Form 121 transition has not been independently verified against the latest official EPFO notification in this response.