EPFO launches six-month Amnesty Scheme for exempted Provident Fund Trusts
The initiative follows changes introduced through the Finance Act, 2026, which align the IT framework governing recognised provident funds with the provisions of the Employees' Provident Fund & Miscellaneous Provisions
Under the revised framework, recognition under the Income Tax Act will be available only to provident funds that have obtained exemption under Section 17 of the EPF Act.
New Delhi: The Employees’ Provident Fund Organisation (EPFO) has introduced the Amnesty Scheme, 2026, offering a one-time opportunity for establishments operating exempted Provident Fund (PF) Trusts to regularise their status. The scheme will remain open for six months and is aimed at resolving long-pending compliance issues for eligible employers.
The initiative follows changes introduced through the Finance Act, 2026, which align the Income Tax framework governing recognised provident funds with the provisions of the Employees’ Provident Fund & Miscellaneous Provisions Act, 1952. Under the revised framework, recognition under the Income Tax Act will be available only to provident funds that have obtained exemption under Section 17 of the EPF Act.
As part of the scheme, eligible establishments will receive retrospective exemption under Section 17 of the EPF Act and Section 143 of the Code on Social Security, 2020, enabling them to regularise their historical operations.
Who can apply?
The Amnesty Scheme applies to establishments that have been operating a Provident Fund Trust recognised under the Income Tax Act, 1961, but do not possess a formal exemption notification from the appropriate Central or State Government.
Eligible establishments have been classified into two categories:
- Category I: Establishments seeking retrospective trust regularisation while already complying, or intending to comply prospectively, as un-exempted establishments.
- Category II: Establishments seeking retrospective regularisation while continuing to operate as exempted establishments under the Code on Social Security, 2020.
Major benefits
The scheme offers several compliance relaxations, including:
- Retrospective regularisation of exemption status from the inception of the trust up to the prescribed cut-off date.
- Waiver of eligibility conditions such as minimum employee strength, corpus size and the three-year prior compliance requirement.
- Withdrawal of pending legal proceedings, including assessments relating to dues, damages and interest, provided employee accounts received contributions and interest at statutory or higher rates.
- Past finalised orders will be treated as void ab initio, subject to fulfilment of the scheme’s conditions.
Employer obligations
To avail the scheme, eligible establishments must:
- Submit a formal application to the Central Government through the concerned EPFO Regional Office by email.
- Alternatively, send an expression of interest to rc.exemption@epfindia.gov.in.
- Ensure 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.
Further guidance
EPFO has advised employers to refer to Part C of the Annexure to the Employees’ Provident Fund Scheme, 2026, notified through Gazette Notification GSR 525(E) dated June 29, 2026, along with the Standard Operating Procedure (SoP) and related circulars available on the EPFO website. Jurisdictional Regional Offices will assist establishments in processing applications under the scheme.
