EPFO Amnesty Scheme for Provident Fund Trusts

EPFO Amnesty Scheme for Provident Fund Trusts

The Employees' Provident Fund Organisation (EPFO), under the Ministry of Labour & Employment, has introduced the Amnesty Scheme, 2026, providing a one-time opportunity for establishments operating exempted Provident Fund Trusts recognized under the Income Tax Act, 1961 to regularize their status. The scheme was notified on June 29, 2026, and will remain open for a period of six months from that date.

Scheme Context and Legal Framework

The scheme follows the Finance Act, 2026 which aligned the Income Tax framework governing recognized provident funds with the statutory and administrative provisions of Employees' Provident Fund & Misc. Provisions Act, 1952. Recognition under the Income Tax Act, 2025 shall now be available only to provident funds that have obtained exemption under Section 17 of Employees' Provident Fund & Misc. Provisions Act, 1952.

Eligibility and Application

The scheme applies to establishments that have been operating a Provident Fund Trust recognized under the Income Tax Act, 1961 but do not possess a formal exemption notification from the appropriate government (Central Government or State Government). Eligible establishments are divided into two categories: Category-I establishments seeking retrospective trust regularization that have already started compliance as un-exempted establishments or are opting for prospective compliance, and Category-II establishments seeking retrospective trust regularization that choose to continue operating as exempted establishments under the Code of Social Security, 2020.

Benefits and Reliefs

The scheme provides several key benefits including retrospective regularization of exemption status and Trust recognition from the inception of the Trust up to the designated cut-off date. It offers waiver of requirements under the Code on Social Security, 2020, including minimum employee headcount and corpus size rules, and deems the 3-year prior compliance rule as satisfied. Additionally, pending assessments for dues, damages, and interest will be withdrawn and stand abated, provided member accounts received interest and contributions at par with or better than statutory rates. Past finalized orders will be treated as void ab-initio.

Employer Obligations

Eligible establishments must submit a formal application addressed to the Central Government through email to the concerned Regional Office. An expression of interest indicating willingness to avail the scheme may also be emailed to rc.exemption@epfindia.gov.in. Financial accounts must be audited by a Chartered Accountant, and special/compliance audits directed by EPF authorities must be completed within 3 months of the application.

Guidance and Reference

For detailed information, stakeholders are directed to refer to part C of Annexure to the Employees' Provident Fund Scheme, 2026 issued via Gazette notification GSR 525(E) dated June 29, 2026, and the EPFO website for detailed procedures outlined in Circulars and Standard Operating Procedures. The jurisdictional Regional Office of EPFO will provide necessary guidance and process applications.