EPFO Form 121 Replaces Form 15G/15H: New TDS Exemption Rule Explained (2026)

Introduction -EPFO Form 121

If you are planning to withdraw money from your EPF account, there is an important update you cannot afford to miss. The Employees’ Provident Fund Organisation (EPFO) has officially discontinued Form 15G and Form 15H for claiming TDS exemption on EPF withdrawals. In their place, EPFO has introduced a single, unified declaration called Form 121, applicable from Tax Year 2026-27 (starting April 1, 2026).

This change follows the rollout of the new Income Tax Act, 2025, which has replaced the old Income-tax Act, 1961. If you were relying on Form 15G or 15H to avoid tax deduction at source on your PF withdrawal, that route no longer works. This guide explains everything HR professionals, EPF subscribers, and payroll teams need to know about Form 121.

Why Did EPFO Replace Form 15G and Form 15H?

For decades, EPF subscribers had two separate options to claim exemption from TDS on withdrawals exceeding Rs. 50,000:

• Form 15G – for resident individuals below 60 years of age
• Form 15H – for resident senior citizens aged 60 years and above

This dual system often confused members about which form applied to them, leading to errors, rejected declarations, and unnecessary TDS deductions. With the enforcement of the Income Tax Act, 2025, the government decided to simplify this process by merging both forms into one.

As per EPFO’s official circular dated April 13, 2026 (Communication No. WSU/TDS Issues/E-772040/2026-27/11), the transition to Form 121 is now mandatory for all EPF subscribers seeking TDS exemption, regardless of their age.

What Is Form 121?

Form 121 is a consolidated self-declaration form notified under Section 393(6) of the Income Tax Act, 2025, read with Rule 211 of the Income Tax Rules, 2026. It allows eligible resident taxpayers to declare that their estimated total income for the financial year falls below the taxable limit, and that their final tax liability for the year will be nil.

By submitting Form 121, an EPF member instructs EPFO (or any other payer, such as a bank or NBFC) not to deduct TDS on the applicable payment.

Key Features of Form 121

• Single form for all age groups — no separate version for senior citizens
• Applicable across payers: EPFO, banks, NBFCs, and post offices
• Fully digital filing with one Unique Identification Number (UIN) issued per PAN per year
• Must be filed afresh every financial year
• Old Form 15G/15H submissions do not carry forward — a completely new declaration is required under the new Act

Who Should File Form 121?

You are eligible to file Form 121 if:

1. You are a resident individual or HUF (Hindu Undivided Family)
2. Your estimated total income for the tax year is below the basic exemption limit
3. Your final tax liability for the year works out to nil

There is no separate age-based limit anymore — the earlier distinction between “below 60” and “60 and above” categories under 15G/15H has been removed. All eligible taxpayers now use the same threshold-based test under Form 121.

Quick Example

Suppose you are 45 years old and your only income for the year is Rs. 2,20,000 from fixed deposit interest. Since this is below the applicable exemption threshold, you are eligible to submit Form 121 and avoid TDS on that interest income.

However, if your total income — including salary, interest, or PF withdrawal amount — crosses the basic exemption limit, you cannot claim this exemption, even if you file Form 121.

When Does This Apply From? EPFO Form 121

Form 121 became effective from April 1, 2026, and is applicable for Tax Year 2026-27 onwards. Any withdrawal request processed on or after this date will require Form 121 instead of the old forms.

Some payers, including certain banks, honoured Form 15G/15H submissions for the whole of FY 2025-26. But for EPF withdrawals from Tax Year 2026-27 onwards, only Form 121 will be accepted.

Step-by-Step: How to File Form 121 for EPF Withdrawal

1. Log in to the EPFO member portal or the relevant claim section where you initiate your withdrawal.
2. Select the withdrawal/claim type applicable to your case (full settlement, partial withdrawal, pension withdrawal, etc.).
3. Locate the Form 121 declaration section before submitting your claim.
4. Enter your estimated total income for the tax year and confirm your residential status.
5. Verify that your PAN, Aadhaar, and EPF account details match EPFO’s records exactly.
6. Submit the form before initiating your withdrawal claim — not after.
7. Note down the UIN (Unique Identification Number) generated for your Form 121 submission for future reference.

Common Mistakes to Avoid

• Filing after the withdrawal request: If you submit Form 121 after your withdrawal claim has already been processed, TDS may already be deducted. You would then have to claim a refund through your Income Tax Return (ITR).
• Mismatched details: If your PAN, Aadhaar, or EPF account details do not match EPFO’s records, the system may flag your declaration and apply TDS regardless.
• Incorrect income declaration: If your declared income does not match your actual taxable income or past tax records, your exemption claim may be rejected.
• Assuming old forms still work: Continuing to rely on a previously filed Form 15G/15H will not help. A fresh Form 121 is compulsory for Tax Year 2026-27 onwards.

What Happens If TDS Is Already Deducted?

If TDS has already been deducted on your EPF withdrawal because Form 121 was not filed in time, you are not without recourse. You can claim a refund of the excess TDS by filing your Income Tax Return for the relevant assessment year, provided your actual tax liability is indeed nil or lower than the tax deducted.

Important Note on False Declarations

Form 121 is a self-declaration, meaning you are personally certifying that your tax liability is zero. Under the Income Tax Act, 2025, payer systems are integrated for cross-verification, and mismatches between your declared income and actual income records are automatically flagged. Making a false declaration can attract penalties, so ensure your declared figures are accurate before submission.

HR and Payroll Teams: What You Need to Know

For HR, payroll, and compliance teams managing EPF-related employee queries, this is a critical update to communicate proactively:

• Inform employees applying for full and final PF settlement, advance withdrawal, or pension withdrawal that Form 15G/15H will not be accepted anymore.
• Update internal FAQs, onboarding kits, and exit process documents to reference Form 121 instead of the old forms.
• Advise employees to file Form 121 before raising their withdrawal claim to avoid unnecessary TDS deductions and refund hassles later.
• Where the organisation facilitates EPF withdrawal support, update any standard checklists or templates used during employee exit processing.

Frequently Asked Questions (FAQs)

Q1. Is Form 15G/15H completely invalid now? Yes. From Tax Year 2026-27 onwards, EPFO does not accept Form 15G or Form 15H for TDS exemption. Only Form 121 is valid.

Q2. Do I need to file Form 121 every year? Yes, Form 121 must be filed fresh for every financial year. It does not carry forward automatically.

Q3. Is filing Form 121 mandatory for everyone? No, it is not mandatory in general, but it is essential if you want to avoid TDS on your EPF withdrawal and your total tax liability for the year is nil.

Q4. What is the legal basis for Form 121? Form 121 is notified under Section 393(6) of the Income Tax Act, 2025, read with Rule 211 of the Income Tax Rules, 2026.

Q5. Can senior citizens still use a separate form like 15H? No. Form 121 has removed the age-based distinction entirely. All eligible individuals, regardless of age, now use the same form.

Conclusion on EPFO Form 121

The shift from Form 15G/15H to Form 121 is one of the most significant compliance changes under the new Income Tax Act, 2025, directly affecting how EPF subscribers claim TDS exemption on their withdrawals. Whether you are an individual planning a PF withdrawal or an HR professional guiding employees through the exit process, staying updated on this change is essential to avoid unnecessary tax deductions and delays.

Make sure to file Form 121 accurately and well before initiating any EPF withdrawal claim from Tax Year 2026-27 onwards, to ensure smooth, TDS-free processing.

Disclaimer: This article is for general informational purposes only and does not constitute tax or legal advice. Please refer to the official EPFO circular and consult a qualified tax professional for guidance specific to your situation.