EPFO New Rule: Know the new rule before withdrawing PF; TDS can now be saved using this form instead of 15G/15H..

If you are planning to withdraw money from your Provident Fund (PF), there is an important update for you. The Employees' Provident Fund Organisation (EPFO) has modified the form related to tax exemption on PF withdrawals. Starting from the financial year 2026-27 (the new tax year), Form 121 will replace the old Forms 15G and 15H for claiming exemption from TDS on PF withdrawals. This change has been implemented under the new Income Tax Act, 2025.

The EPFO ​​shared this information on its official social media handle, 'X'. This change implies that employees who previously filed Form 15G or 15H to avoid TDS deduction will now need to be familiar with the new form. However, this form is not mandatory for every employee; it can only be used by those who meet specific criteria and have a projected tax liability of zero for the relevant tax year.

**TDS may be deducted if PF is withdrawn before 5 years**
According to the rules, if an employee withdraws money from their EPF account before completing five years of continuous service, TDS may be levied under certain circumstances. Under Section 192A of the Income Tax Act, 2025, if the withdrawal amount exceeds ₹50,000, TDS may be deducted at a rate of 10%, subject to applicable conditions.

Therefore, three factors must be considered when withdrawing PF: the duration of your continuous employment, the amount being withdrawn, and your total estimated income for the relevant tax year. These factors will determine whether TDS applies to your case and whether you are eligible for an exemption.

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