Kolkata: Withdrawing money from EPF (Employees’ Provident Fund) account is now smoother. EPFO has replaced Forms 15G and 15H which were used earlier with a single Form 121. It is aligned with the Income Tax Act, 2025 and this is a significant development for those who want to claim exemptions from tax deducted at source (TDS) on withdrawals from the EPF account. A large number of people withdraw money from their EPF account for a lot of reasons. The change that EPFO has made has implications for how errors are tackled, how quickly withdrawal applications are processed and how tax declarations are scrutinised.
Forms 15G and 15H
All these years, EPFO used to offer two forms for two different sets of subscribers. If the applicant was below 60, he/she will be required to fill Form 15G and those above 60 would need to fill and submit Form 15H. Form 121 has eliminated this confusion altogether. This single form applies to everyone irrespective of age. “The form removes the confusion of choosing between different forms. Earlier, subscribers had to decide between 15G and 15H based on age and eligibility. Now, it’s a single declaration for everyone,” said Pratik Vaidya, managing director and chief vision officer at Karma Management Global Consulting Solutions, was quoted in reports as saying.
Use of Form 121
Those withdrawing money from EPFO needs to fill and file Form 121. If the total income falls below the taxable threshold of a taxpayer, Form 121 helps him/her to avoid TDS on EPF withdrawals for amounts above Rs 50,000. But in order to get this exemption, EPFO subscribers have to fill this form every financial year. Needless to say, the data should be up to date. If one fails to file Form 121, TDS can be deducted, even if the subscriber’s income is non-taxable.
File Form 121 before withdrawal request
Experts are now advising that one should file Form 121 even before submitting a request for withdrawal. He/she must also ensure PAN, Aadhaar and bank details are correctly linked and verified. The income should be accurately declared and one should also keep past ITRs ready at hand in case these are needed.