The Employees' Provident Fund Organisation (EPFO) has rolled out a one-time Amnesty Scheme, 2026, to regularise establishments operating exempted Provident Fund (PF) Trusts, with the six-month window opening on June 29, 2026. The scheme will remain available until the end of December 2026.
The initiative follows changes introduced through the Finance Act, 2026, which aligned the Income Tax framework with the Employees' Provident Fund & Miscellaneous Provisions Act, 1952. Officials expect a rise in applications over the coming months as exempted PF trusts move to comply with the revised regulatory framework.
According to the Ministry of Labour & Employment, the scheme is designed to ensure that recognition under the Income Tax Act, 2025 is available only to provident funds that have secured exemption under Section 17 of the EPF & MP Act, 1952. It is also intended to reduce long-pending disputes and bring all exempted trusts under a uniform compliance regime by 2027.
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"Amnesty shall be granted to such establishments retrospectively under Section 17 of the Act and Section 143 of the Code on Social Security, 2020," the official notification said. The scheme covers establishments operating Provident Fund Trusts recognised under the Income Tax Act, 1961, but lacking a formal exemption notification issued by the Central or State Government.
EPFO has classified eligible applicants into two broad categories. The first comprises trusts seeking retrospective regularisation that have either already shifted to compliance as un-exempted establishments or are prepared to do so prospectively. The second includes trusts seeking retrospective regularisation while continuing to function as exempted establishments under the Code on Social Security, 2020.
To encourage wider participation, the scheme provides several relaxations. Exemption status and trust recognition will be granted retrospectively from the inception of the trust up to the specified cut-off date. EPFO has also waived the minimum employee strength and corpus requirements, while the mandatory three-year prior compliance condition will be treated as fulfilled.
The scheme further offers relief on pending legal matters. Assessments relating to dues, damages and interest will be withdrawn and deemed abated, provided members have received contributions and interest at rates equal to or higher than the statutory benchmark. Any past finalised orders covered under the scheme will be treated as void ab initio.
EPFO's Regional Offices have been directed to assist establishments and process applications under the scheme. With the application window closing in December 2026, the amnesty is being presented as a one-time opportunity for exempted PF trusts to regularise their status and align with the strengthened statutory and tax compliance framework before the revised Income Tax provisions are fully implemented.
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