The Employees’ Provident Fund Organization (EPFO) has introduced the Amnesty Scheme 2026, which provides organizations operating Provident Fund (PF) trusts exempted under the Income Tax Act, 1961 a unique opportunity to regularize their legal status.
“Employers, stakeholders and the general public are advised to take note of the scheme, which will remain open for a period of six months,” the PIB update mentions.
The Finance Act, 2026 has aligned the income tax rules for recognized provident funds with the provisions of the Employees’ Provident Funds and Miscellaneous Provisions Act (EPF and MP Act), 1952.
Going forward, only provident funds that have taken exemption under Section 17 of the EPF and MP Act will be recognized under the Income Tax Act, 2025.
Under the Amnesty Scheme, eligible establishments can receive exemption under Section 17 of the EPF and MP Act and Section 143 of the Social Security Code, 2020.
Who can apply?
The Amnesty Scheme is intended for establishments that have been managing a Trust Provident Fund recognized under the Income Tax Act, 1961, but do not have a formal exemption notification issued by either the Central Government or the State Government.
In simple terms, the scheme helps employers bridge a regulatory gap between income tax recognition and EPF exemption status without facing lengthy legal proceedings.
The Amnesty Scheme was notified on June 29, 2026 and is valid for six months from the date of notification.
Two categories of eligible establishments
EPFO has divided eligible employers into two categories:
Category I
These include establishments seeking retrospective regularization of their PF trust while:
- already complies as a non-exempt establishment, or
- planning to continue future compliance as a non-exempt establishment.
Category II
These are establishments seeking retrospective regularization and intending to continue operating as exempt establishments under the 2020 Social Security Code.
Key benefits of the Amnesty Plan
The plan offers several relief measures for eligible employers.
1. Retrospective regularization
Eligible FP trusts can obtain exempt status from the date the trust was established until the notified deadline.
2. Relaxation of eligibility conditions
Certain requirements of the 2020 Social Security Code have been waived, including:
- minimum employee strength
- corpus size rules
- three-year prior compliance requirement
3. Relief from judicial proceedings
Pending settlements relating to provident fund dues, damages and interest will be withdrawn and deemed closed, provided the employees have received contributions and interest equal to or higher than the statutory EPF rates.
Additionally, prior finalized orders covered by the plan will be deemed void ab initio, effectively nullifying prior proceedings.
What should employers do?
To take advantage of the benefits, eligible establishments must complete certain procedures.
- Submit a formal request to the Central Government through the concerned EPFO Regional Office via email
- Alternatively, the employer may send an expression of interest to: rc.exemption@epfindia.gov.in
- Make sure your financial accounts are audited by a public accountant.
- Complete any special or compliance audit conducted by the EPFO authorities within three months of submitting the application.
