If you're planning to withdraw from your Employee Provident Fund (EPF) or any PF account and you want to avoid TDS this is the most important tax update for you in 2025.
The Income-tax Act, 2025 has replaced the long-standing Forms 15G and 15H with a single, unified declaration: Form 121, effective from the tax year governed by the Income-tax Rules, 2026. Here's what changed, why it matters for your PF, and exactly how to use it.
Until now, there were two separate forms:
Both served the same purpose, declaring that your estimated total income for the year is NIL, so that the payer (like EPFO) wouldn't deduct TDS. But having two separate forms created confusion, especially for people nearing the age of 60 or those unsure which one applied to them.
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.
It is submitted by a taxpayer to their payer (in the context of PF this is the EPFO or your company's PF trust) stating that their estimated total income for the tax year is NIL, so that TDS should not be deducted on the amount being paid or credited.
When you withdraw from your EPF account before completing 5 continuous years of service, TDS is typically deducted at 10% (or 20% if PAN is not furnished) on amounts above ₹50,000.
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:
The following can file Form 121:
The following cannot file Form 121:
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 are eligible to submit Form 121.
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 the applicable rate. There is 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. Do not 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, you need to submit Form 121 to each one individually. A single submission does not cover all.
Step 6 — The payer files Part B electronically Your PF office (payer) is then required to submit a copy of your declaration in Part B electronically on the Income-tax Department's e-filing portal. They must also report the transaction in their quarterly TDS statement using Form 140.
One form per tax year. Form 121 is not a one-time submission. You must file it freshly every tax year, each time you make a qualifying withdrawal or receive income that would otherwise attract TDS.
Not mandatory, but strategically important. Submitting this form is entirely optional. If you don't submit, TDS will be deducted and you can claim a refund while filing your Income Tax Return. But that means a cash flow delay and the hassle of filing an ITR. Submitting Form 121 proactively avoids all of that.
Paper or online. The form can be submitted in paper form. If your employer's PF trust or EPFO provides an online facility, it can also be submitted digitally.
Validity is form-specific and year-specific. A Form 121 submitted in FY 2025–26 does not carry over to FY 2026–27.
Submitting after the withdrawal has already been processed is the most common error. Once TDS is deducted, Form 121 cannot undo it you must wait for an ITR refund.
Not submitting to each payer separately. If you have PF with two different trusts, one submission is not enough.
Assuming NRI status doesn't affect you. If you've become an NRI since your last employment, you are not eligible to file Form 121 regardless of your EPF balance.
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. For EPF and PF subscribers planning a withdrawal in FY 2025–26, 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.
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* Form 121 replaces Forms 15G and 15H from FY 2025–26, simplifying TDS exemption declarations for resident individuals on PF withdrawals. * Submit Form 121 before PF withdrawal if your total income is below the taxable limit to avoid TDS; PAN is mandatory, and separate forms are needed for multiple payers. * Form 121 cannot be used by NRIs or companies, and late submission results in TDS deduction that can only be claimed via ITR refund.
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","_id":"69dd069911d4690943c32c8b"},{"question":"Can I use Form 121 for all types of EPF withdrawals?","answer":"Yes, Form 121 applies to all types of EPF withdrawals (partial or full) before completing 5 years of service, pension payouts, and interest earnings.
","_id":"69dd069911d4690943c32c8c"},{"question":"Who is eligible to file Form 121?","answer":"Form 121 can be filed by:
However, NRIs and companies are not eligible to file Form 121.
","_id":"69dd069911d4690943c32c8d"},{"question":"What happens if I don’t submit Form 121?","answer":"If you don’t submit Form 121, TDS will be deducted from your EPF withdrawal. You can claim this TDS back when you file your Income Tax Return (ITR), but it may cause delays in getting the money and a more complicated process.
","_id":"69dd069911d4690943c32c8e"},{"question":"Is PAN mandatory for Form 121?","answer":"Yes, PAN is mandatory for submitting Form 121. Without a valid PAN, your declaration will be treated as invalid, and TDS will be deducted at the applicable rate.
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