The Employees’ Provident Fund Organisation (EPFO) has introduced the Amnesty Scheme 2026, allowing establishments operating exempted Provident Fund (PF) trusts to regularise their status. This scheme targets trusts recognised under the Income Tax Act, 1961, but lacking formal exemption notifications from the government. The amnesty window will remain open for six months, providing a crucial opportunity for employers and stakeholders to comply with updated regulatory requirements.
The scheme aims to benefit both the PF trusts and their members by offering retrospective regularisation and legal relief. EPFO has urged all concerned parties to take note and consider applying within the stipulated timeframe.
Why Regularisation of Exempted PF Trusts Is Needed
The need for this amnesty arises from recent changes in the legal framework governing provident funds. The Finance Act, 2026, has aligned the Income Tax provisions related to recognised provident funds with the Employees' Provident Fund & Miscellaneous Provisions Act, 1952. Under the updated rules, only those provident funds that have obtained exemption under Section 17 of the EPF Act will be recognised under the Income Tax Act, 2025.
Many trusts operating under the Income Tax Act, 1961, have not secured formal exemption notifications, leaving them unregularised. The EPFO’s new scheme allows these establishments to regularise retrospectively under Section 17 of the EPF Act and Section 143 of the Code on Social Security, 2020, ensuring compliance with the latest statutory requirements.
Who Can Apply and What Are the Benefits?
EPFO has categorised eligible establishments into two groups:
- Category I: Establishments seeking retrospective trust regularisation that have already been operating as un-exempted or plan to comply prospectively as un-exempted.
- Category II: Establishments seeking retrospective regularisation and opting to continue as exempted trusts under the Code on Social Security, 2020.
The scheme offers several key benefits for exempted trusts:
- Retrospective regularisation: Exemption status and trust recognition will be granted from the trust’s inception up to a designated cut-off date.
- Waiver of compliance requirements: Rules related to minimum employee count, corpus size, and prior compliance of three years under the Code on Social Security, 2020, will be waived.
- Legal relief: Pending legal proceedings concerning dues, damages, and interest will be withdrawn if member accounts have received interest and contributions at or above statutory rates. Previously finalised orders will be nullified.
To qualify, establishments must have their financial accounts audited by a chartered accountant and complete any special or compliance audits directed by EPF authorities within three months of applying.
How the Amnesty Scheme Affects Employers and Employees
This scheme provides a vital pathway for employers managing exempted PF trusts to align with current laws without facing penalties or prolonged legal disputes. It helps clear ambiguities around exemption status, ensuring that trusts can continue operating smoothly and members’ benefits remain protected.
For employees, the regularisation means their provident fund contributions and interest will be secured under the updated legal framework, reducing risks related to compliance lapses by their employers. The withdrawal of pending legal actions also helps maintain trust and stability in the provident fund system.
Employers should act promptly to take advantage of this limited-time offer, ensuring their PF trusts meet all regulatory standards and avoid future complications.
Frequently Asked Questions
Q: Who is eligible to apply for the EPFO Amnesty Scheme 2026?
A: Establishments operating Provident Fund trusts recognised under the Income Tax Act, 1961, but without formal exemption notifications, can apply. They fall into two categories based on their compliance approach and future operation plans.
Q: What benefits does the amnesty scheme provide to exempted PF trusts?
A: The scheme offers retrospective exemption status, waivers on certain compliance requirements, and abatement of pending legal proceedings, provided member accounts have received appropriate interest and contributions.
Q: What are the key compliance requirements to apply for the scheme?
A: Applicants must have their financial accounts audited by a chartered accountant and complete any EPF-directed audits within three months of submitting their application.
