EPF TDS Rules Change: Form 15G And 15H Replaced By Form 121

The Employees’ Provident Fund Organisation (EPFO) has announced a change in the forms used by eligible members to seek exemption from tax deducted at source (TDS). From tax year 2026-27 onwards, Form 15G and Form 15H will no longer be used for this purpose.

Instead, eligible taxpayers will now have to use Form 121. This follows the introduction of the Income Tax Act, 2025, and the corresponding Income Tax Rules in 2026. The Income Tax Department has also listed Form 121 as the new form corresponding to the earlier Form 15G and Form 15H.

What Are Form 15G And Form 15H

Form 15G and Form 15H are declarations used by eligible taxpayers to request that TDS not be deducted from certain payments. Under the earlier tax framework, Form 15G could be submitted by eligible resident individuals below 60 years, while Form 15H was meant for resident individuals aged 60 years or above, subject to the prescribed conditions.

For EPF, these declarations could be relevant where tax was otherwise required to be deducted from an eligible withdrawal. The member could submit the applicable declaration when the estimated tax liability for the tax year was nil, and the other conditions were met.

Why Has Form 121 Been Introduced

The Income Tax Act, 2025, brings Form 121 in place of Form 15G and Form 15H. The Income Tax Department describes it as a declaration for receiving certain income without deduction of tax.

Under the new framework, Form 121 is used when a taxpayer declares that the tax payable on their estimated total income for the relevant tax year will be nil. Based on a valid declaration, the payer can avoid deducting TDS on specified payments.

The new system also combines the earlier 15G and 15H declarations into one form. This means taxpayers no longer need to choose between the two forms based on their age. The eligibility conditions under the new provision are broadly the same as those applicable earlier.

What Changes For EPF Members

For tax year 2026-27 onwards, an EPF member who qualifies for TDS exemption will have to use Form 121 instead of Form 15G or Form 15H.

The change is about the declaration form used for seeking non-deduction of TDS. It does not mean that every EPF withdrawal will attract tax. The tax treatment, however, will depend on the applicable rules and the circumstances of the withdrawal.