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EPFO Amnesty: PF Trusts Get Tax Relief Chance
2 Sep
Summary
- EPFO offers a one-time amnesty for PF trusts with compliance gaps.
- Scheme targets trusts recognized under Income Tax but lacking EPF exemption.
- The amnesty window is open for six months, closing December 28, 2026.
The Employees' Provident Fund Organisation (EPFO) is actively identifying provident fund (PF) trusts that can benefit from a new one-time amnesty scheme. This initiative targets trusts recognized under the Income Tax Act but lacking formal exemption orders under the EPF&MP Act, 1952, or the Code on Social Security, 2020.
EPFO has engaged professional bodies like the Institute of Chartered Accountants of India (ICAI) and its field offices to disseminate information about the scheme. They are also collaborating with the Income Tax Department to cross-verify recognition and exemption statuses, and have requested the withdrawal of recognition for non-compliant trusts.
The amnesty scheme is available for a period of six months from its notification, concluding on December 28, 2026. This provides eligible PF trusts an opportunity to regularize their exemption and compliance status for past periods, offering enhanced regulatory clarity for employees.
Furthermore, the scheme offers relief from certain requirements stipulated under the Code on Social Security, 2020. Its primary objective is to resolve historical exemption and compliance issues for eligible PF trusts, thereby ensuring greater regulatory certainty.
