The Employees' Provident Fund Organisation (EPFO) has officially implemented the transition from Forms 15G and 15H to Form 121 through Circular No. WSU/TDS Issues/E-772040/2026-27/1, dated April 13, 2026. As reported by EPFO, this regulatory overhaul follows the phasing out of the legacy Income-tax Act, 1961, and the commencement of the Income-tax Act, 2025, effective April 1, 2026. The circular, issued with approval of the Central Provident Fund Commissioner (CPFC), encloses a comprehensive five-page explanatory note from the Income Tax Department, a two-page set of official FAQs, and the statutory three-page proforma of Form 121. The primary operational shift involves the complete retirement of Forms 15G and 15H, which have now been unified into a single, consolidated declaration.
Form 121 serves as a single statutory instrument for all eligible resident payees, replacing the previous age-based segregation system. According to the official circular, the declaration is structured into two operative components: Part A, completed, verified, and signed by the declarant seeking receipt of income without tax deduction, and Part B, completed and certified by the payer or dedctor responsible for crediting or disbursing the sum. The proforma introduces modernized digital features designed for system-assisted filing, including auto-population of personal details from registered tax profiles, drop-down selectors, checkbox validations, and standardized address formats, with all financial entries recorded in Indian Rupees.
Form 121 is not a blanket requirement for all income earners but is an optional self-declaration available strictly to taxpayers who anticipate that their total tax liability for the relevant tax year will be nil. As per the official guidelines, eligible persons include resident individuals (irrespective of whether they are below 60 years or senior citizens aged 60 and above), Hindu Undivided Families (HUFs), and other eligible trusts or entities. Excluded entities are non-resident taxpayers, corporate entities, and partnership firms. For resident individuals below 60 and HUFs, the declaration cannot be accepted if the aggregate income covered under Section 393(6) exceeds the maximum basic exemption limit not chargeable to tax. Senior citizens are exempt from basic threshold restrictions, provided their estimated total taxable income results in nil tax liability after accounting for allowable deductions under Chapter VII of the Act and eligible rebates under Section 156.
Covered payments under Form 121 include payment of accumulated balance due to an employee participating in a recognized provident fund, interest on securities, interest other than interest on securities paid by banks, co-operative banks, post offices, or specified persons, dividend income declared by domestic companies, income from units of mutual funds or specified undertakings, insurance commissions for procuring, continuing, or reviving insurance policies, payments under life insurance policies including any sum allocated by way of bonus, and rent payments received from specified persons. The tax treatment of a PF withdrawal depends on factors such as the circumstances of withdrawal, the period of service and the applicable income tax rules. As reported by Mandatory PAN is mandatory, and if PAN is absent or invalid, the declaration is treated as non-est, requiring the payer to deduct tax at source at the applicable statutory rate.
For EPF members withdrawing accumulated balances where tax deduction applies, the circular outlines clear operational protocols. Regional Offices must protect existing claims, with PF settlement claims already submitted on or after April 1, 2026, with the older Forms 15G or 15H not to be rejected or returned. Regional field officers must instead contact the member directly to procure Form 121. Field offices are authorized to accept physically signed and scanned copies uploaded by applicants, while the EPFO Information Services Division (ISD) develops portal functionality for online digital e-signing. Declarants must submit Part A to the payer before the scheduled transaction date or before the income is credited or paid, with a separate Form 121 declaration required for each distinct tax year. Form 121 is valid only for the financial year in which it is submitted, and members who need relief in a later year must file a fresh form, provided they still meet the criteria.
