Important news has emerged for employees. The central government has launched the Amnesty Scheme, 2026, for companies and institutions operating Provident Fund (PF) trusts. The scheme aims to provide an opportunity to regularize the status of PF trusts that are recognized under the Income Tax Act, 1961, but have not received a formal exemption order from the EPFO. This is a one-time privilege.
Will there be any changes in the Income Tax Act, 2025?
Following the Finance Act, 2026, income tax rules and the EPF Act have been harmonized for recognized provident funds. Now, to be recognized as a PF under the Income Tax Act, 2025, the relevant PF must be exempt under Section 17 of the EPF & MP Act, 1952.
This makes the amnesty scheme necessary for PF trusts that were earlier recognised under the Income Tax Act but had not received a formal exemption order from the EPFO.
Which PF trusts will benefit from this scheme?
This scheme is primarily for entities that were operating a recognized PF trust under the Income Tax Act, 1961, but did not have a formal exemption notification under Section 17. Such entities have been given the opportunity to regularize their PF trusts retrospectively.
What benefits will this offer?
Under the amnesty scheme, eligible entities can obtain retrospective regularization of the exempt status of PF trusts. Certain eligibility criteria have been relaxed, including those related to the number of employees, corpus, and past compliance. Furthermore, certain legal proceedings related to pending dues, losses, and interest may be mitigated if certain conditions are met.
The Amnesty Scheme 2026 was notified on June 29, 2026, and is valid for six months. According to current EPFO information, the last date to
apply is December 28, 2026. Eligible PF trusts must apply through the relevant EPFO regional office. Financial accounts must also be audited by a chartered accountant. Therefore, it is crucial for the relevant entity and PF trust management to complete documentation and compliance in a timely manner.
PC: Money9live
