The Employees' Provident Fund Organisation (EPFO) has announced a new six-month Amnesty Scheme, 2026, providing a critical window for establishments operating exempted Provident Fund (PF) trusts to formalise their status under the Employees' Provident Fund and Miscellaneous Provisions Act, 1952.
According to a statement from the Ministry of Labour and Employment, the scheme targets trusts that are recognised under the Income Tax Act but lack a formal exemption notification from the appropriate government. The initiative, which opened on June 29, 2026, will remain active for a period of six months.
Aligning with New Financial Legislation
This amnesty follows amendments introduced by the Finance Act, 2026, which harmonise the Income Tax framework for recognised provident funds with the statutory and administrative provisions of the EPF Act. Under the updated regulations, Income Tax recognition will now only be extended to provident funds that have secured an exemption under Section 17 of the EPF Act.
The scheme specifically offers retrospective exemption under Section 17 of the EPF Act and Section 143 of the Code on Social Security, 2020.
Who Can Apply?
The scheme is designed for establishments that have been managing recognised PF trusts under the Income Tax Act, 1961, but do not possess an official exemption notification from either the Central or State government. Eligible establishments are categorised as follows:
- Category I: Establishments seeking retrospective trust regularisation that have either commenced compliance as un-exempted establishments or plan to do so prospectively.
- Category II: Establishments seeking retrospective trust regularisation while continuing their operations as exempted establishments under the Code on Social Security, 2020.
Benefits of Retrospective Recognition and Legal Relief
Participating establishments can gain retrospective regularisation, receiving exemption status and trust recognition from the trust's inception up to a specified cut-off date. The scheme also waives certain requirements mandated by the Code on Social Security, 2020, including norms for minimum employee headcount, corpus size, and the three-year prior compliance period.
Furthermore, pending assessments related to dues, damages, and interest will be withdrawn and abated, provided that member accounts have received contributions and interest rates equivalent to or superior to statutory requirements. Past finalised orders will also be deemed void ab initio.
Application and Audit Requirements
Eligible establishments must submit a formal application to the Central Government via email to their respective EPFO Regional Office. An expression of interest can also be sent to rc.exemption@epfindia.gov.in. Applicants are required to have their financial accounts audited by a Chartered Accountant. Any special or compliance audit requested by EPFO authorities must be completed within three months of the application submission.