EPFO Switches to Single Form 121, Replacing 15G and 15H for Tax Declarations
Why it matters
The Employees' Provident Fund Organisation (EPFO) is updating its tax declaration process, replacing Forms 15G and 15H with a new, consolidated Form 121. Previously, individuals under 60 used Form 15G, while senior citizens relied on Form 15H to declare their income below the taxable threshold and thus avoid TDS on provident fund interest or premature withdrawals. This dual-form system often resulted in administrative bottlenecks and errors.
Introducing Form 121 is part of a broader effort to simplify tax compliance within the social security system. By merging two separate declarations into one, the EPFO lessens the administrative load for both subscribers and regional PF offices. This change is especially relevant for PF members who withdraw their accumulated funds before completing five years of service, as such withdrawals typically incur TDS if no declaration is submitted.
- Form 121 replaces Form 15G (General) and Form 15H (Senior Citizens).
- It functions as a unified self-declaration to avoid TDS.
- Benefits include fewer documentation errors and quicker withdrawal processing.
Glossary
TDS: Tax Deducted at Source is a method for the government to collect income tax at the point income is earned.
Form 121: The new, single self-declaration form for EPFO subscribers to prevent tax deduction on PF payouts.
NaukriSync Exam Angle
Indian Economy / Banking & Finance. Key fact to memorise: Form 121 has replaced Forms 15G and 15H for EPFO tax declarations. Most likely question format: Direct MCQ asking which specific form was introduced as a unified replacement for 15G and 15H in the current reporting cycle.