If you're planning to withdraw from your Employee Provident Fund (EPF) and want to avoid TDS, this is the tax update that matters most for FY 2026-27.
The Income-tax Act, 2025 has replaced the long-standing Forms 15G and 15H with a single, unified declaration: Form 121, effective from 1 April 2026 and applicable from Tax Year 2026-27 onward. Here's what changed, why it matters for your PF, and exactly how to use it.
What Was the Problem With 15G & 15H?
Until now, there were two separate forms:
- Form 15G — for individuals below 60 years of age
- Form 15H — exclusively for senior citizens (60 years and above)
Both served the same purpose: declaring that your estimated total income for the year is NIL, so the payer (like EPFO) wouldn't deduct TDS. But having two separate forms created confusion, especially for people nearing 60 or unsure which one applied to them.
What Is Form 121?
Form 121 is a declaration under Section 393(6) of the Income-tax Act, 2025, governed by Rule 211 of the Income-tax Rules, 2026. It replaces both 15G and 15H, effective from Tax Year 2026-27.
It's submitted by a taxpayer to their payer (for PF, this is EPFO or your company's PF trust), stating that their estimated total income for the tax year is NIL, so TDS shouldn't be deducted on the amount being paid or credited. For the official form and legal basis, see the Income Tax Department's Form No. 121 page.
Form 121 vs. 15G vs. 15H: Quick Comparison
| Feature | Form 121 | Form 15G | Form 15H |
|---|
| Who files it | All eligible resident individuals and HUFs, any age | Individuals below 60 years | Senior citizens, 60 years and above |
| Legal basis | Section 393(6), Income-tax Act 2025 | Section 197A, Income-tax Act 1961 | Section 197A, Income-tax Act 1961 |
| Applicable from | Tax Year 2026-27 (1 April 2026 onward) | Superseded from Tax Year 2026-27 | Superseded from Tax Year 2026-27 |
| Age-based confusion | None, one form for everyone | Common, especially near age 60 | Common, especially near age 60 |
| PAN required | Yes, mandatory | Yes, mandatory | Yes, mandatory |
| Submission frequency | Every tax year, to each payer separately | Every tax year, to each payer separately | Every tax year, to each payer separately |
Why Does This Matter for PF Withdrawals?
When you withdraw from your EPF account before completing 5 continuous years of service, TDS is typically deducted at 10% on amounts above ₹50,000, or 34.608% if PAN is not furnished.
By submitting Form 121, you can prevent this deduction, but only if your total income for the year (including the PF withdrawal) is expected to be NIL or below the taxable threshold.
This applies to:
- EPF (Employee Provident Fund) withdrawals
- PF corpus during partial or full settlement
- Pension payouts
- PF interest earnings
Who Can Submit Form 121?
Can file:
- Resident individuals, both below 60 years and 60 years or above (no more two-form confusion)
- HUFs (Hindu Undivided Families)
- Other specified entities meeting the stipulated income criteria
Cannot file:
- Companies
- Firms/partnerships
- Non-resident Indians (NRIs), even if they have an EPF account
For the full eligibility breakdown, see the Income Tax Department's Form 121 FAQ page.
Step-by-Step: How to Use Form 121 for PF Withdrawal
Step 1 — Check your eligibility Estimate your total income for the tax year. This includes your salary (if any), interest income, rental income, and the PF withdrawal amount itself. If the combined total falls below the basic exemption limit and your tax liability is NIL, you're eligible.
Step 2 — Keep your PAN ready PAN is mandatory. Without a valid PAN, the declaration is treated as invalid and TDS will be deducted at 34.608%. There's no exception to this.
Step 3 — Fill Part A of Form 121 The declarant (you) fills and submits Part A to the payer. For EPF, this means submitting it to the EPFO regional office or your employer's PF trust, depending on whether your PF is managed by EPFO or a private trust.
Step 4 — Submit before the withdrawal/transaction date The form must be submitted before the scheduled payment or credit date. Don't wait until after the withdrawal is processed, TDS once deducted has to be claimed as a refund via ITR, which is a longer process.
Step 5 — Submit to each payer separately If you have PF contributions with multiple employers or trusts, submit Form 121 to each one individually. A single submission doesn't cover all of them.
Step 6 — The payer files Part B electronically Your PF office (payer) is required to submit a copy of your declaration in Part B electronically on the Income-tax Department's e-filing portal, and report the transaction in their quarterly TDS statement using Form 140.
Key Things to Remember
- One form per tax year. Form 121 isn't a one-time submission. File it fresh every tax year, each time you make a qualifying withdrawal or receive income that would otherwise attract TDS.
- Not mandatory, but strategically important. If you don't submit it, TDS will be deducted and you can claim a refund while filing your ITR. That means a cash flow delay and the hassle of filing a return. Submitting Form 121 proactively avoids both.
- Paper or online. The form can be submitted on paper. If your employer's PF trust or EPFO offers an online facility, it can be submitted digitally too.
- Validity is year-specific. A Form 121 submitted in FY 2026-27 doesn't carry over to FY 2027-28.
Common Mistakes to Avoid
- Submitting after the withdrawal has already been processed. Once TDS is deducted, Form 121 can't undo it, you'll need to wait for an ITR refund.
- Not submitting to each payer separately. If you have PF with two different trusts, one submission isn't enough.
- Assuming NRI status doesn't affect you. If you've become an NRI since your last employment, you're not eligible to file Form 121, regardless of your EPF balance.
Bottom Line
Form 121 is a welcome simplification. No more guessing whether you need 15G or 15H, one form, one set of rules, applicable to all resident individuals, from Tax Year 2026-27 onward. If you're planning a PF withdrawal after 1 April 2026, the key action items are: confirm your income estimate, keep your PAN handy, and submit Form 121 to your PF office before the withdrawal date.
A small administrative step today can save you the hassle of a TDS refund claim tomorrow.
Not sure if this affects your PF withdrawal, or whether you're even eligible to file Form 121? Check your PF withdrawal eligibility before you file anything.
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