EPFO PF Withdrawal Rules have changed for the 2026-27 tax year, and employees planning to withdraw their Provident Fund (PF) savings need to take note of the new requirement.
The Employees’ Provident Fund Organisation (EPFO) has clarified that Forms 15G and 15H will no longer be accepted for claiming Tax Deducted at Source (TDS) exemption on eligible PF withdrawals.
Instead, eligible members must submit Form 121 under the Income-tax Act, 2025.
The change is important for employees who want to avoid TDS deductions when withdrawing their accumulated retirement savings.
However, submitting the new form does not automatically make every PF withdrawal tax-free. Members must meet the applicable eligibility conditions before claiming an exemption.
 EPFO PF Withdrawal Rules: What Has Changed?
EPFO has announced that Form 121 will replace the earlier Forms 15G and 15H for claiming TDS exemption from tax year 2026-27 onwards.
The clarification was shared through the organisation’s official social media account.
Previously, eligible individuals could submit Form 15G or Form 15H, depending on their age and applicable conditions, to request that TDS not be deducted on certain payments. Under the revised process, eligible taxpayers must use the new declaration form instead.
This change follows the implementation of the Income-tax Act, 2025, and the Income-tax Rules, 2026.
PF account holders planning a withdrawal should therefore check the updated requirements before submitting their claim.
Who Needs to Submit Form 121 for PF Withdrawal?
Form 121 is relevant to eligible taxpayers whose estimated tax liability for the relevant tax year is nil and who want to claim exemption from TDS on specified payments.
The change is particularly important for employees withdrawing their EPF balance before completing five years of continuous service.
Under the applicable rules, TDS may be deducted when the withdrawal amount exceeds Rs 50,000, subject to the relevant conditions.
Members should consider their total service period, withdrawal amount and estimated annual income before submitting the declaration.
They must also ensure that they meet the prescribed eligibility criteria.
Form 121 is not available to everyone.
Eligibility depends on the applicable tax rules, and individuals whose estimated income creates a tax liability cannot use the declaration simply to avoid a deduction.
How Forms 15G and 15H Differed From Form 121
Before the change, Form 15G was generally used by eligible individuals below 60 years of age who met the prescribed conditions for declaring that no tax was payable on their estimated income.
Form 15H served a similar purpose for eligible senior citizens aged 60 years and above.
From tax year 2026-27, eligible applicants must use Form 121 instead of choosing between the two older forms.
The revised process provides a common declaration for eligible taxpayers, subject to the conditions set out under the new tax framework.
For employees who regularly manage their PF accounts, understanding these EPFO PF withdrawal rules can help prevent mistakes when filing a withdrawal claim.
Using an outdated form may not provide the intended TDS exemption.
Does Form 121 Make Your PF Withdrawal Tax-Free?
No. Submitting Form 121 does not automatically make a PF withdrawal tax-free.
The form is a declaration through which an eligible taxpayer states that their estimated tax liability for the relevant tax year is nil and requests that TDS not be deducted on an applicable payment.
The tax treatment of a PF withdrawal depends on the applicable rules and the individual’s circumstances.
Factors such as the length of continuous service, the amount withdrawn and the person’s estimated income can affect whether TDS applies.
Members should also ensure that they have a valid PAN and satisfy the applicable requirements before submitting the form.
Providing an incorrect declaration or assuming that the form guarantees a tax exemption could lead to complications.
Employees who are unsure about their eligibility should review the applicable Income-tax Rules, 2026, or seek advice from a qualified tax professional before filing their claim.
For now, the key point for PF account holders is straightforward: eligible taxpayers must use Form 121 to claim TDS exemption from tax year 2026-27 onwards, rather than relying on Forms 15G or 15H.
Checking the latest requirements before withdrawing PF money can help employees avoid unnecessary paperwork and confusion.
