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Retirement
EPF Withdrawals: What You Need to Know About the New Form 121
MAS Team | 23 April 2026
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If you're an EPF subscriber planning a withdrawal, there's a crucial update you shouldn't miss. The government has overhauled the process for claiming tax deduction at source (TDS) exemptions on provident fund withdrawals, with the changes taking effect from the 2026–27 tax year.
 
 
Out with the Old, In with the New
The familiar Forms 15G and 15H, which EPF members previously used to avoid TDS on withdrawals, are no longer valid for this purpose. In their place, a single unified declaration — Form 121 — has been introduced under the Income Tax Act, 2025. The EPFO officially confirmed this shift on social media, urging members to stop relying on the old forms.
 
Failing to file Form 121 when eligible could mean TDS gets deducted from your withdrawal anyway, leaving you with less than you expected.
 
What Form 121 Actually Does
It's worth being clear about what this form is and isn't. Form 121 does not make your withdrawal tax-free — it simply allows eligible individuals to declare that their estimated tax liability for the year is nil, thereby avoiding an unnecessary deduction at source. Your PAN is mandatory when filing it.
You are responsible for completing Part A of the form and submitting it to the relevant payment authority. The payer handles Part B. Once submitted, the declaration is verified, a unique identification number (UIN) is assigned, and the details are reported electronically — making this a more rigorous process than the earlier system.
 
Key Things to Keep in Mind
File it early. The form must be submitted before the scheduled transaction date — ideally before payment is credited or at the start of the financial year. Don't leave it to the last moment.
 
It applies per payer, per year. This is not a one-size-fits-all submission. If you've filed similar declarations with other payers during the same year, those details need to be disclosed. The form must be filed separately for each payer and each tax year.
 
Have your documents ready. Before filling out Form 121, keep your PAN, estimated income details, information about any similar declarations filed with other payers, and the last two years' ITR details handy, if applicable.
 
In a separate but related development, the Central Board of Trustees (CBT) of the EPFO has decided to maintain the EPF interest rate at 8.25% for FY25–26, keeping returns stable for members.
 
If you're planning an EPF withdrawal from April 1, 2026 onwards, the old 15G/15H framework no longer applies. Verify your eligibility, fill Form 121 accurately, and submit it on time. Getting this wrong — or ignoring the change altogether — could directly reduce the amount that lands in your account.
 
Dear Investor,
In case of any grievance / complaint :
  • Please contact Compliance Officer Pankaj Raheja at [email protected] and Phone No. - 91-22-35131664.
  • You may also approach CEO Debashis Basu at email- id [email protected] and Phone No. - 91-22-35131664.
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