EPFO announces an amnesty scheme: How it helps you?
What's the story
The Employees' Provident Fund Organisation (EPFO) has launched the Amnesty Scheme, 2026, a one-time opportunity for organizations with exempted Provident Fund (PF) trusts under the Income Tax Act, 1961. The scheme is open for six months and intends to help employers regularize their legal status. The Finance Act, 2026 has harmonized income tax provisions for recognized provident funds with those of the Employees' Provident Funds and Miscellaneous Provisions Act (EPF & MP Act), 1952.
Scheme details
Key features of the scheme
Going forward, only those provident funds that have been exempted under Section 17 of the EPF & MP Act will be recognized under the Income Tax Act, 2025. The Amnesty Scheme allows eligible establishments to seek exemption under both Section 17 of the EPF & MP Act and Section 143 of the Code on Social Security, 2020. It is aimed at establishments running a Provident Fund Trust recognized under the Income Tax Act but lacking a formal exemption notification.
Regulatory gap
Two categories of eligible employers
The Amnesty Scheme helps employers bridge a regulatory gap between their income tax recognition and EPF exemption status without facing prolonged legal proceedings. It was notified on June 29, 2026, and is valid for six months from the date of notification. Eligible employers are divided into two categories: those seeking retrospective regularization of their PF trust while complying as an un-exempted establishment, and those seeking retrospective regularization intending to continue operating as exempted establishments under Code on Social Security, 2020.
Employer obligations
Relief measures and application process
The Amnesty Scheme offers several relief measures for eligible employers, including retrospective regularization, relaxation of eligibility conditions under the Code on Social Security, 2020, and relief from legal proceedings. Eligible establishments must submit a formal application to the Indian government through their concerned EPFO Regional Office via email or send an expression of interest to rc.exemption@epfindia.gov.in. They also have to ensure their financial accounts are audited by a CA and complete special/compliance audit directed by EPFO authorities within three months.