Form 121 EPF TDS Exemption

Form 121 EPF TDS exemption is an important change for eligible taxpayers and EPFO members from Tax Year 2026-27. Under the new Income-tax Act, 2025 and Income-tax Rules, 2026, the earlier Forms 15G and 15H have been replaced by a consolidated Form 121 for declarations seeking non-deduction of tax at source on specified incomes, subject to the applicable conditions.

The Form 121 EPF TDS exemption process provides an updated declaration mechanism for eligible taxpayers from Tax Year 2026-27 under the Income-tax Act, 2025.

The Employees Provident Fund Organisation issued a circular dated 13 April 2026 regarding the transition from Form 15G and Form 15H to Form 121 for TDS-exempted incomes. The circular explains the implementation of the new tax framework and its application from 1 April 2026. :contentReference[oaicite:1]{index=1}

The change is relevant for EPF members who may otherwise be subject to TDS on eligible EPF withdrawals or other specified income. Instead of using the earlier age-based Forms 15G and 15H, eligible taxpayers use the consolidated Form 121 under the new framework.

The Form 121 EPF TDS exemption process provides an updated declaration mechanism for eligible taxpayers from Tax Year 2026-27 under the Income-tax Act, 2025.

Form 121 for EPF Withdrawal

Form 121 for EPF withdrawal is relevant where an eligible taxpayer wants to furnish a declaration for non-deduction of TDS on specified income, including applicable PF withdrawals. The form operates as a self-declaration that the taxpayer’s estimated total income for the relevant tax year will result in a nil tax liability, subject to the conditions prescribed under the applicable law.

The Form 121 EPF TDS exemption process provides an updated declaration mechanism for eligible taxpayers from Tax Year 2026-27 under the Income-tax Act, 2025.

The Income Tax Department describes Form 121 as a statutory declaration under the Income-tax Rules, 2026. The declaration is furnished to the deductor or payer, and the payer can rely on the declaration for non-deduction of TDS where the prescribed conditions are satisfied. :contentReference[oaicite:2]{index=2}

EPF members should therefore understand the applicable requirements before submitting Form 121 for EPF withdrawal. The declaration should be completed accurately and provided to the concerned payer according to the applicable procedure.

The Form 121 EPF TDS exemption process provides an updated declaration mechanism for eligible taxpayers from Tax Year 2026-27 under the Income-tax Act, 2025.

EPF TDS Exemption 2026-27

EPF TDS exemption 2026-27 is governed by the new tax framework applicable from 1 April 2026. The Income-tax Department states that for a tax year beginning on or after 1 April 2026, the declaration previously made through Forms 15G and 15H must be furnished in Form 121. :contentReference[oaicite:3]{index=3}

The introduction of Form 121 provides a consolidated declaration mechanism under the new law. Eligible taxpayers should review the applicable conditions before using the form because filing the form is intended for taxpayers who satisfy the relevant requirements for non-deduction of TDS.

The Form 121 EPF TDS exemption process provides an updated declaration mechanism for eligible taxpayers from Tax Year 2026-27 under the Income-tax Act, 2025.

The new process is particularly relevant for EPFO members and other taxpayers dealing with specified income where TDS may otherwise be deducted. Understanding the new form can help eligible taxpayers avoid relying on outdated forms after the transition to the new Income-tax framework.

The Form 121 EPF TDS exemption process provides an updated declaration mechanism for eligible taxpayers from Tax Year 2026-27 under the Income-tax Act, 2025.

Form 15G 15H Replaced by Form 121

Form 15G 15H replaced by Form 121 is one of the important changes introduced for declarations under the new Income-tax Act. Under the earlier Income-tax Act, 1961, Forms 15G and 15H were used by eligible taxpayers to request non-deduction of TDS on specified income.

The Form 121 EPF TDS exemption process provides an updated declaration mechanism for eligible taxpayers from Tax Year 2026-27 under the Income-tax Act, 2025.

Under the Income-tax Act, 2025, the corresponding provision is Section 393(6). The Income Tax Department confirms that the declaration for a tax year beginning on or after 1 April 2026 is furnished using Form 121 under the Income-tax Rules, 2026. :contentReference[oaicite:4]{index=4}

The Form 121 EPF TDS exemption process provides an updated declaration mechanism for eligible taxpayers from Tax Year 2026-27 under the Income-tax Act, 2025.

The transition means that eligible taxpayers should not continue to use the old Forms 15G and 15H for the new tax year where Form 121 is prescribed. This creates a clear and simplified form structure for the relevant declaration.

The Form 121 EPF TDS exemption process provides an updated declaration mechanism for eligible taxpayers from Tax Year 2026-27 under the Income-tax Act, 2025.

Income Tax Act 2025 Form 121

Income Tax Act 2025 Form 121 is prescribed for declarations under Section 393(6) of the new Act. The Income Tax Department’s Form 121 document identifies Section 393(6) as the corresponding provision replacing the earlier provisions associated with Forms 15G and 15H. :contentReference[oaicite:5]{index=5}

The Form 121 EPF TDS exemption process provides an updated declaration mechanism for eligible taxpayers from Tax Year 2026-27 under the Income-tax Act, 2025.

Form 121 is designed to allow an eligible recipient to declare that the tax payable on their estimated total income for the relevant tax year will be nil. Based on a valid declaration, the payer may not deduct TDS on the specified payment, subject to the applicable legal conditions.

The new form should therefore be considered as part of the wider transition from the Income-tax Act, 1961 to the Income-tax Act, 2025. Taxpayers should use the current official form and follow the latest instructions issued by the Income Tax Department.

The Form 121 EPF TDS exemption process provides an updated declaration mechanism for eligible taxpayers from Tax Year 2026-27 under the Income-tax Act, 2025.

Why Form 121 Is Important for EPF Members

Form 121 EPF TDS exemption is important because eligible EPF members may need to provide the appropriate declaration when seeking non-deduction of TDS on specified PF-related income. The new form replaces the previous Form 15G and Form 15H mechanism for tax years beginning on or after 1 April 2026.

The Form 121 EPF TDS exemption process provides an updated declaration mechanism for eligible taxpayers from Tax Year 2026-27 under the Income-tax Act, 2025.

The change means that EPFO members should review their documents before making a declaration. Using the correct form can help ensure that the declaration is processed under the applicable tax framework.

Taxpayers should also remember that Form 121 is a declaration of eligibility and estimated nil tax liability. It should not be treated as an automatic exemption available to every EPF member.

Who Can Use Form 121

The Income Tax Department’s guidance explains that Form 121 is available to eligible resident taxpayers who meet the prescribed conditions. The earlier distinction between Form 15G for eligible persons below 60 and Form 15H for eligible senior citizens has been replaced by the consolidated Form 121 process under the new framework. :contentReference[oaicite:6]{index=6}

The official Form 121 document specifies eligible categories and conditions. It also states that companies and firms are not eligible to furnish this declaration and that non-residents are not eligible to use the form. :contentReference[oaicite:7]{index=7}

The Form 121 EPF TDS exemption process provides an updated declaration mechanism for eligible taxpayers from Tax Year 2026-27 under the Income-tax Act, 2025.

Taxpayers should therefore confirm their eligibility before submitting Form 121. The form should only be used where the applicable statutory requirements are satisfied.

Form 121 and Nil Tax Liability

A central requirement of Form 121 is the declaration that the taxpayer’s estimated total income for the relevant tax year will result in a nil tax liability. The Income Tax Department’s user manual explains that Form 121 is a statutory declaration based on this estimated nil tax liability. :contentReference[oaicite:8]{index=8}

Taxpayers should carefully consider their estimated total income before making the declaration. Providing incorrect information in a statutory declaration can create compliance concerns.

The declaration should therefore be completed with accurate information and submitted to the relevant payer within the applicable time frame.

When to Submit Form 121

The Income Tax Department recommends furnishing Form 121 to the deductor in time so that TDS is not deducted in the first place. Its user manual states that the declaration should ideally be submitted before the income is credited or paid and preferably at the start of the tax year. :contentReference[oaicite:9]{index=9}

EPF members seeking applicable TDS relief should therefore consider the timing of the declaration. Delayed submission may affect the deductor’s ability to process the declaration before the relevant payment.

Form 121 for EPF TDS Exemption Process

The Form 121 EPF TDS exemption process provides an updated declaration mechanism for eligible taxpayers from Tax Year 2026-27 under the Income-tax Act, 2025.

The Form 121 process begins with the eligible taxpayer completing the declaration and furnishing it to the concerned payer. The payer is responsible for completing the relevant portion of the form and following the applicable reporting process.

The EPFO circular explains that the declarant must complete the relevant Part A information and sign the form. The payer completes the information required in Part B. :contentReference[oaicite:10]{index=10}

EPFO also instructed its offices regarding the assignment of a Unique Identification Number to each Form 121 received and the reporting of the consolidated information through the Income Tax Department’s e-filing system. :contentReference[oaicite:11]{index=11}

Form 121 and EPFO Compliance

EPFO has communicated the transition to its regional offices through its circular dated 13 April 2026. The circular specifically addresses implementation of the new Income-tax Act and the transition from Forms 15G and 15H to the consolidated Form 121 for TDS-exempted incomes. :contentReference[oaicite:12]{index=12}

EPFO members and employers should therefore refer to official EPFO instructions when dealing with applicable TDS declarations connected with PF payments.

Keeping the official circular and Form 121 instructions available can help HR and payroll teams understand the transition and communicate the revised process to eligible employees.

Important Change From Tax Year 2026-27

The new Form 121 process applies for tax years beginning on or after 1 April 2026. This makes Tax Year 2026-27 the first relevant tax year under the new framework.

Employers and EPFO members should distinguish the new tax year framework from the earlier Income-tax Act, 1961 provisions. Forms 15G and 15H belonged to the earlier framework, while Form 121 is the prescribed declaration under the Income-tax Rules, 2026.

Form 121 for EPF Withdrawal and TDS

Form 121 for EPF withdrawal can be relevant where the applicable PF payment is subject to TDS provisions and the taxpayer satisfies the conditions for making a nil-tax declaration. The official EPFO FAQ accompanying the transition explains that PF withdrawals are among the income types covered by the declaration. :contentReference[oaicite:13]{index=13}

Taxpayers should examine the nature of the payment and their overall tax position before submitting the declaration. Form 121 should be used only where the relevant statutory requirements are met.

Other Income Covered by Form 121

Form 121 is not limited exclusively to EPF-related income. The official material identifies several specified income categories, including PF withdrawals and pension, insurance commission, rent, interest on deposits, income from mutual funds, certain life insurance policy payments and dividends. :contentReference[oaicite:14]{index=14}

This makes Form 121 a consolidated declaration mechanism under the new tax framework rather than a form created only for EPFO members. The applicable conditions should be reviewed for the particular category of income involved.

Form 121 Versus Form 15G and Form 15H

Under the previous framework, Forms 15G and 15H were separate declarations with eligibility linked in part to age and other conditions. Form 121 consolidates the declaration process under the new Income-tax Act.

The Income Tax Department confirms that the eligibility criteria continue to apply under Section 393(6), while the declaration format changes to Form 121 for tax years beginning on or after 1 April 2026. :contentReference[oaicite:15]{index=15}

Benefits of the Consolidated Form 121 System

The consolidated Form 121 system provides a single declaration format for eligible taxpayers instead of requiring separate Forms 15G and 15H based on age. This can provide a more straightforward process for taxpayers and payers working under the new tax framework.

The change also provides a consistent declaration format for the relevant categories of specified income. Taxpayers can use the official instructions to understand the information required for their declaration.

Important Information for EPFO Members

• Form 121 replaces Forms 15G and 15H for the new tax framework.
• The change applies to tax years beginning on or after 1 April 2026.
• Tax Year 2026-27 is covered by the new framework.
• Form 121 operates under Section 393(6) of the Income-tax Act, 2025.
• Rule 211 of the Income-tax Rules, 2026 prescribes the form.
• The declaration concerns specified income on which TDS may otherwise apply.
• PF withdrawals are among the specified income categories identified in the official material.
• The taxpayer declares that estimated tax liability for the tax year will be nil.
• The declaration should be furnished to the payer in time.
• Eligibility conditions should be checked before submission.

Common Mistakes to Avoid With Form 121

Eligible taxpayers should avoid continuing to submit Forms 15G or 15H for tax years covered by the new framework where Form 121 is prescribed. Using an outdated declaration may create unnecessary processing issues.

Another important point is to provide accurate information. Form 121 is a statutory declaration concerning estimated tax liability, so taxpayers should review their income information before submitting the form.

Taxpayers should also avoid waiting until after the relevant payment has already been processed. The Income Tax Department recommends submitting the declaration before the income is credited or paid. :contentReference[oaicite:16]{index=16}

Form 121 and Employer Payroll Teams

Payroll and HR teams should understand the new declaration process because employees may approach employers with questions about TDS on applicable payments. Teams should refer to the official Form 121 instructions rather than relying on outdated Form 15G or Form 15H procedures.

Employers and payers should maintain appropriate records of declarations received and follow the applicable reporting requirements. The EPFO circular provides instructions regarding Unique Identification Numbers and consolidated reporting.

Form 121 and Unique Identification Number

The EPFO circular provides for a Unique Identification Number for every Form 121 received by the payer. The UIN is used as part of the reporting process and includes relevant identifying components. :contentReference[oaicite:17]{index=17}

The circular also states that the consolidated statement of Forms 121 received in a month is to be uploaded through the Income Tax Department’s e-filing portal within the prescribed timeline.

Form 121 Online Filing

The Income Tax Department provides an online Form 121 service and user manual. The official user manual explains the prerequisites and process for the deductor, including a valid TAN and registration on the e-filing portal. :contentReference[oaicite:18]{index=18}

The EPFO circular also notes that a facility for declarants to digitally e-sign and file Form 121 online was being provided, while physical signed forms could be used during the transition. :contentReference[oaicite:19]{index=19}

Form 121 and Statutory Record Keeping

Employers and other payers should maintain appropriate records of declarations received under the new system. Proper documentation can help organisations track employee declarations and support the reporting process.

EPFO offices were specifically instructed to maintain the required information and follow the reporting mechanism prescribed for Form 121. The same circular provides details concerning UIN allocation and reporting.

Form 121 Compliance Checklist

• Confirm that the relevant tax year begins on or after 1 April 2026.
• Check whether the taxpayer satisfies the eligibility conditions.
• Use Form 121 instead of Forms 15G or 15H under the new framework.
• Review estimated total income before making the declaration.
• Confirm that the expected tax liability meets the required condition.
• Complete the required declaration accurately.
• Submit the declaration to the concerned payer in time.
• Retain a copy of the submitted declaration.
• Follow the applicable UIN and reporting requirements.
• Refer to official Income Tax Department and EPFO instructions for updates.

Official Income Tax Department Form 121 Information

The Income Tax Department provides the official Form 121 page and user manual. The official guidance states that Form 121 is a statutory declaration prescribed under the Income-tax Rules, 2026 through which a taxpayer declares that tax liability on estimated total income for the relevant tax year is nil. :contentReference[oaicite:20]{index=20}

The official Form 121 document also identifies the earlier Forms 15G and 15H and their corresponding provisions under the previous framework. It identifies Form 121 under Section 393(6) and Rule 211 under the new framework. :contentReference[oaicite:21]{index=21}

Official Income Tax Department Form 121 Information

Official Form 121 User Manual

Official EPFO Circular on Form 121

EPFO issued Circular No. WSU/TDS Issues/E-772040/2026-27/11 dated 13 April 2026 concerning implementation of the new Income-tax Act, 2025 and the transition from Forms 15G and 15H to consolidated Form 121 for TDS-exempted incomes. :contentReference[oaicite:22]{index=22}

The circular explains that the new framework applies from 1 April 2026 and provides instructions to EPFO offices regarding Form 121, including the declaration process, UIN allocation and reporting.

Official EPFO Circular on Form 121

Raj Consultancy Labour Law and Tax Compliance Support

Raj Consultancy provides labour law and HR compliance support to businesses dealing with statutory requirements, payroll compliance, EPF, ESIC and employment-related regulations. Organisations can review their payroll and compliance procedures when changes in statutory requirements affect employees or tax-related processes.

The Form 121 EPF TDS exemption process provides an updated declaration mechanism for eligible taxpayers from Tax Year 2026-27 under the Income-tax Act, 2025.

Employers and HR teams should keep their statutory information updated and refer to official government notifications when implementing changes. Where a tax or EPF declaration is required, taxpayers should verify the applicable eligibility conditions and follow the prescribed procedure.

Final Compliance Reminder

Form 121 EPF TDS exemption is the relevant new declaration mechanism for eligible taxpayers under the Income-tax Act, 2025 for tax years beginning on or after 1 April 2026. Forms 15G and 15H belong to the earlier framework and have been replaced by Form 121 under the new rules.

EPF members should review their eligibility, estimated tax liability and applicable payment before submitting the declaration. Form 121 should be furnished to the concerned payer in accordance with the applicable procedure and timing.

The Form 121 EPF TDS exemption process provides an updated declaration mechanism for eligible taxpayers from Tax Year 2026-27 under the Income-tax Act, 2025.

The transition to Form 121 is an important compliance update for Tax Year 2026-27 onwards. Employers, EPFO members, HR professionals and payroll teams should use the latest official Income Tax Department and EPFO guidance when handling TDS declarations.