TDS Rules 2026-27: The EPFO currently offers numerous facilities to account holders, including the option to withdraw funds. While PF account proceeds are entirely tax-free upon retirement, employees often withdraw funds from their PF accounts prior to that. If you are planning to withdraw money from your PF account, it is essential to be aware of the EPFO’s rules and regulations; this knowledge will enable you to claim TDS benefits correctly and on time.
The EPFO has clarified that Forms 15G and 15H will no longer be valid for claiming PF TDS exemptions. Starting from the income tax year 2026-2027, Form 121 must be filled out to claim TDS benefits. Let us look at this change in detail.
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📢 Important Update
Form 15G/15H is no longer valid for claiming EPF TDS exemptions.
➡️Tax year 2026-27 onwards TDS Exemption is to be claimed by submitting Form 121 (as per the Income Tax Act, 2025)#EPFO #EPFOWithYou #HumHainNa #ईपीएफओ https://t.co/FZKsBRXELW
“>October 8, 2026
Change in Form for PF TDS Claims
According to the Income Tax Department, starting from the income tax year 2026-2027, EPFO members who wish to claim a TDS exemption on withdrawals must fill out Form 121. Forms 15G and 15H will no longer be accepted for this purpose. This information has been provided to ensure that taxpayers do not face any inconvenience.
Why the Change Was Made
According to the Income Tax Department, the form required for PF withdrawal previously depended on the applicant’s age; individuals under 60 used to fill out Form 15G, while senior citizens filled out Form 15H. Now, however, a single form—Form 121—can be used to claim TDS exemption, making the process significantly easier.
Impact on EPF Withdrawals
It is worth noting that if taxpayers withdraw PF funds before completing five years of continuous service, they are liable to pay TDS. Specifically, if the withdrawal amount exceeds ₹50,000, TDS must be paid at a rate of 10%. Consequently, taxpayers can claim the TDS deducted from their PF funds by filling out Form 121 when they file their income tax returns.