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.
Until now, there were two separate forms:
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.
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.
| 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| Applicable from | Tax Year 2026-27 (1 April 2026 onward) | Superseded from Tax Year 2026-27 | Superseded from Tax Year 2026-27 |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 |
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:
Can file:
Cannot file:
For the full eligibility breakdown, see the Income Tax Department's Form 121 FAQ page.
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.
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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Need help filing Form 121 correctly? Talk to a tax-aware PF expert at FinRight. FinRight is a private EPF assistance platform and is not affiliated with EPFO or the Government of India.
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Form 121 is a unified declaration form under the Income-tax Act, 2025, which replaces the previously used Form 15G (for individuals below 60 years) and Form 15H (for senior citizens). It allows individuals to declare that their total income for the year is NIL, preventing TDS from being deducted on their EPF withdrawals or other qualifying incomes.
","_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":"Resident individuals (both below and above 60 years), HUFs, and other specified entities with NIL tax liability. NRIs and companies are not eligible.
","_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. Without a valid PAN, your declaration is treated as invalid and TDS is deducted at the higher rate of 34.608%.
","_id":"69dd069911d4690943c32c8f"},{"question":"Which tax year does Form 121 apply to?","answer":"Form 121 is effective from 1 April 2026 and applies from Tax Year 2026-27 onward. If you're planning a withdrawal before that date, the older 15G/15H rules still apply for that period.
","_id":"6a627a51d28e7d83a1735485"},{"question":"What is the TDS rate if I don't have a PAN?","answer":"34.608%, the maximum marginal rate under Section 192A. With a valid PAN and no Form 121 filed, the standard rate is 10% on withdrawals before 5 years of continuous service, above ₹50,000.
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