New Amnesty Scheme for Provident Fund Trusts Announced
The Employees’ Provident Fund Organization (EPFO) has introduced an Amnesty scheme as part of the Employees’ Provident Fund (EPF) Scheme 2026, offering a unique chance for Provident Fund (PF) Trusts to regularize their exemption status. This initiative, notified on June 29, 2026, provides an opportunity for Trusts recognized under the Income Tax Act, 1961, but lacking a formal exemption order from the EPF&MP Act, 1952 or the Code on Social Security, 2020 to comply with regulatory requirements.
The operational guidelines pertaining to the Amnesty scheme, detailing the application process and procedural specifications, were released in a circular on July 11, 2026. The Amnesty provisions are effective for a duration of six months from the date of notification, concluding on December 28, 2026. Key benefits include the retrospective regularization of exemption status and the waiver of certain conditions, such as minimum employee headcount, corpus size, and the three-year compliance rule associated with the Code on Social Security, 2020. Following this regularization, establishments may elect to operate as either exempt or non-exempt entities.
EPFO’s Outreach Efforts
The EPFO is actively working to ensure that potential applicants are informed about the Amnesty provisions. The organization is engaging with various stakeholders and utilizing its field offices to guide applicants through the process. Outreach efforts have included collaboration with professional bodies like the Institute of Chartered Accountants of India (ICAI), whose members conduct audits for numerous establishments with PF Trust Funds. ICAI has been tasked with distributing the Amnesty provisions to its members to encourage participation from eligible PF Trusts.
Additionally, EPFO’s Zonal Offices, including those in Uttar Pradesh and Kolkata, have hosted seminars and workshops to further educate stakeholders about the Amnesty scheme and its advantages.
Collaboration with the Income Tax Department
In tandem with these initiatives, EPFO is liaising with the Income Tax Department to obtain information on PF Trusts recognized under the Income Tax Act. This partnership is aimed at verifying the coverage and exemption status of these establishments under the EPF&MP Act and the Code on Social Security before tax recognition is granted or previously granted recognition is withdrawn for non-compliance.
Eligible PF Trusts can apply for the Amnesty scheme by following the guidelines outlined in the EPFO circular dated July 11, 2026, which is available on the EPFO’s official website: www.epfo.gov.in.
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