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 new form replaces the previous Forms 15G and 15H, streamlining the procedure for members seeking TDS exemptions on their provident fund withdrawals and interest income.
Key changes introduced:
- Form 121 serves as a self-declaration form for claiming TDS exemption.
- EPFO is set to launch a new portal named E-PRAAPTI to assist members in tracing and linking old or inactive PF accounts.
- The minimum pension under the Employees’ Pension Scheme (EPS-95) currently stands at ₹1,000 per month.
Labour unions have expressed their concerns regarding the current minimum pension, demanding an increase to ₹7,500 per month. According to sources, discussions are ongoing about potentially raising the minimum pension under EPS-95. The Central government contributes over ₹950 crore annually to sustain this minimum pension level.
Labour minister Mansukh Mandaviya stated that “the proposed portal, called E-PRAAPTI, will enable subscribers to access legacy accounts, update profiles and complete UAN seeding without any intervention by the employer.” This development aims to enhance digital services for EPF subscribers and facilitate easier access to their accounts.
As these changes unfold, it remains unclear when a definitive decision regarding the pension increase will be announced. While discussions are underway, no specific timeline has been provided by officials involved in these negotiations.
