If you're considering withdrawing money from your PF account, this news is important for you. The forms used to avoid TDS deductions on PF deposits have changed. Starting from the 2026-27 tax year, eligible employees will need to use Form 121, replacing the old Forms 15G and 15H, to qualify for TDS exemption. Therefore, it's important to understand the new rules and your eligibility before withdrawing PF.

Form 121 to replace Form 15G and 15H
Earlier, while withdrawing money from PF, Form 15G or Form 15H could be submitted as per eligibility. This form was used to request that TDS should not be deducted if the concerned person did not have estimated annual taxable income. Form 15G was used for eligible people below 60 years of age, while Form 15H was used for senior citizens. However, it has been informed that from tax year 2026 to 27, a new system of using Form 121 for TDS exemption while withdrawing money from EPF has been implemented.

Will filing Form 121 make your PF tax-free?
Filing Form 121 does not automatically make your entire PF amount tax-free. This form is for eligible individuals who, after meeting certain criteria, request non-deduction of TDS. It is essential that the estimated total income for the relevant financial year is tax-free and other necessary conditions are met.

This provision is outlined under Section 393(6) of the Income Tax Act, 2025. The Act came into effect on April 1, 2026. A valid PAN is required, and the information provided states that non-resident Indians (NRIs) will not be able to avail this facility. It has been learned that the EPFO ​​​​has issued instructions regarding the provision of a unique identification number for Form 121, as well as the provision of online application and e-signature. This could facilitate verification of identity and the application process.

PC: TV9 BHARATVARSHA