EPFO launches Amnesty Scheme 2026 for exempted Provident Fund Trusts

EPFO has notified a one-time Amnesty Scheme, 2026, for exempted Provident Fund Trusts. The six-month window from June 29, 2026, aims to regularise trusts, cut litigation, and align with new tax laws before a December 2026 deadline.

The Employees' Provident Fund Organisation has notified a one-time Amnesty Scheme, 2026, to regularise establishments operating exempted Provident Fund Trusts, with the window opening on June 29, 2026 and set to run for six months.

The move comes after the Finance Act, 2026, aligned the Income Tax framework with the Employees' Provident Fund & Misc. Provisions Act, 1952, and officials expect a surge in applications through the end of 2026 as trusts rush to meet the new linkage.

Scheme Objective and Legal Framework

The Ministry of Labour & Employment said the scheme is intended to ensure that recognition under the Income Tax Act, 2025 is available only to provident funds that have obtained exemption under Section 17 of the EPF & MP Act, 1952. It also aims to cut pending litigation and bring all exempted trusts under a uniform compliance structure by 2027.

"Amnesty shall be granted to such establishments retrospectively under Section 17 of the Act and Section 143 of the Code on Social Security, 2020," the notification stated.

Eligibility and Categories

The amnesty applies to establishments that have been running a Provident Fund Trust recognised under the Income Tax Act, 1961 but do not hold a formal exemption notification from the Central or State Government. EPFO has broadly divided eligible entities into two groups. The first includes trusts seeking retrospective regularisation that have either already started complying as un-exempted establishments or are willing to opt for prospective compliance as un-exempted. The second covers trusts that want retrospective regularisation but intend to continue operating as exempted establishments under the Code on Social Security, 2020.

Benefits and Relief Measures

To encourage participation, the scheme offers significant relief. Exemption status and Trust recognition will be granted from the inception of the Trust up to the designated cut-off date. EPFO has also waived the minimum employee headcount and corpus size requirements, and the three-year prior compliance rule will be deemed satisfied.

On the legal front, pending assessments for dues, damages and interest will be withdrawn and will stand abated, provided members received interest and contributions at rates equal to or higher than the statutory rate. Past finalised orders will be treated as void ab-initio under the scheme.

Guidance and Deadline

Regional Offices have been tasked with providing guidance and processing applications. With the deadline set for December 2026, the amnesty is being positioned as a final opportunity for exempted trusts to align with the tightened statutory framework before the new Income Tax rules take full effect. (ANI)

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