New Delhi: The Employees’ Provident Fund Organisation (EPFO) has introduced the Amnesty Scheme, 2026, providing establishments operating Provident Fund (PF) trusts under the Income Tax Act, 1961 a six-month window to regularise their legal status.
The scheme has been notified on 29th June, 2026, and is valid till December 29, 2026.
The Finance Act, 2026 has aligned income tax rules for recognised provident funds with the provisions of the Employees’ Provident Funds and Miscellaneous Provisions Act (EPF & MP Act), 1952.
Henceforth, only provident funds which have obtained exemption under Section 17 of the EPF & MP Act will be recognised under the Income Tax Act, 2025.
Under the Amnesty Scheme, eligible establishments can receive exemption under Section 17 of the EPF & MP Act and Section 143 of the Code on Social Security, 2020.
Who can apply?
The Amnesty Scheme is meant for establishments which have been running a Provident Fund Trust recognised under the Income Tax Act, 1961, but don’t have a formal exemption notification issued by either the Central Government or state government.
EPFO has divided eligible employers into two categories:
Category I
These include establishments seeking retrospective regularisation of their PF trust while either — already complying as an un-exempted establishment, or planning to continue future compliance as an un-exempted establishment.
Category II
These are establishments seeking retrospective regularisation and intending to continue operating as exempted establishments under the Code on Social Security, 2020.
Key benefits
The Amnesty Scheme offers following relief measures for eligible employers:
- Retrospective regularisation: Eligible PF trusts can obtain exemption status from the date the trust was established up to the notified cut-off date.
- Relaxation of eligibility conditions: Certain requirements under the Code on Social Security, 2020 have been waived, including — minimum employee strength, corpus size rules, requirement of three years of prior compliance
- Relief from legal proceedings: Pending assessments relating to provident fund dues, damages and interest will be withdrawn and treated as closed, provided employees have received contributions and interest equal to or higher than the statutory EPF rates.
To avail the benefits, eligible establishments must complete certain formalities:
* Submit a formal application to the Central government through the concerned EPFO Regional Office via email
* Alternatively, the employer can send an expression of interest to: rc.exemption@epfindia.gov.in
* Ensure that their financial accounts are audited by a Chartered Accountant
* Complete any special or compliance audit directed by EPFO authorities within three months of submitting the application.
