EPFO Launches Amnesty Scheme for Exempted PF Trusts
The Employees' Provident Fund Organisation (EPFO) has notified a one-time Amnesty Scheme, 2026, to regularise establishments operating exempted Provident Fund Trusts. The scheme opened on June 29, 2026, and will run for six months, closing in December 2026, according to an official notification.
This initiative follows the Finance Act, 2026, which aligned the Income Tax framework with the Employees' Provident Fund & Misc. Provisions Act, 1952. Officials anticipate a surge in applications as trusts rush to meet the new linkage requirements.
Purpose of the Amnesty Scheme
The Ministry of Labour & Employment stated that the scheme ensures 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. The amnesty also aims to reduce pending litigation and bring all exempted trusts under a uniform compliance structure by 2027.
According to the notification, "Amnesty shall be granted to such establishments retrospectively under Section 17 of the Act and Section 143 of the Code on Social Security, 2020."
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 divided eligible entities into two groups:
- Group 1: 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.
- Group 2: Trusts that want retrospective regularisation but intend to continue operating as exempted establishments under the Code on Social Security, 2020.
Relief and Benefits
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 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On the legal front, pending assessments for dues, damages and interest will be withdrawn and will stand abated, provided members received interest and contributions at rates equal to or higher than the statutory rate.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.
Implementation 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.
