The Ministry of Labour and Employment has opened a one-time amnesty window allowing Provident Fund (PF) trusts to regularize their exemption status without facing penalties. The scheme, part of the new Employees’ Provident Fund (EPF) Scheme 2026, targets trusts that have been recognized by the Income Tax Department but lack formal exemption orders from the Employees’ Provident Fund Organisation (EPFO). The amnesty period closes on 28 December 2026, leaving less than three months for eligible establishments to apply.
Key facts
- Amnesty window validity: 29 June 2026 to 28 December 2026 (six months)
- Amnesty provisions notified in the EPF Scheme 2026 on 29 June 2026
- Operational guidelines issued by EPFO on 11 July 2026
- Target: PF trusts recognized under Income Tax Act, 1961 but without formal EPFO exemption orders under section 17 of the EPF and Miscellaneous Provisions (EPF&MP) Act, 1952 or section 143 of the Code on Social Security, 2020
- Training programs conducted at Pandit Deendayal Upadhyaya National Academy of Social Security (PDUNASS)
- Awareness partnerships with Confederation of Indian Industry (CII), Institute of Chartered Accountants of India (ICAI), and Bombay Stock Exchange (BSE)
Who qualifies for the amnesty
The scheme targets a specific group of establishments: PF trusts that the Income Tax Department has already recognized as exempt entities, but which have never obtained a formal exemption order from the EPFO or have not complied with the Social Security Code framework. This creates a gap between tax law recognition and social security law compliance. The amnesty allows these trusts to resolve this discrepancy without facing enforcement action.
Main benefits of regularization
Organizations that register under the amnesty receive multiple advantages. First, they get retrospective formalization of their exemption status, meaning the EPFO will recognize their exempt standing as if proper procedures had always been followed. Second, the scheme waives strict statutory requirements that normally apply under the Code on Social Security, 2020, including minimum employee headcount thresholds, minimum corpus size requirements, and the mandatory three-year compliance rule. Third, after regularization, trusts gain operational flexibility to choose whether to operate as exempt or unexempt establishments, based on their needs and circumstances.
Why this matters
Many PF trusts, particularly in large establishments and professional firms, were set up under income tax provisions and have been managing provident funds for employees without formal EPFO registration. While the Income Tax Department recognized them, the EPFO did not, creating legal uncertainty. The amnesty resolves this gap and ensures such trusts remain eligible for income tax benefits while achieving proper compliance under social security law. This is especially important for trusts established before the Code on Social Security, 2020 came into force.
How to apply
EPFO has released detailed operational guidelines and simplified procedures for applications, available since 11 July 2026. The organization is providing support through multiple channels. Chartered accountants and statutory auditors have been trained to help identify qualifying trusts and assist with applications. EPFO regional and zonal offices across India have conducted seminars and workshops to guide employers and trust members through the process. The organization has also created explanatory infographics and multi-media campaigns to simplify compliance requirements.
Support and awareness measures
To ensure maximum participation, the EPFO has coordinated extensively with industry bodies and the professional community. Meetings and seminars have been held with the Confederation of Indian Industry, the Institute of Chartered Accountants of India, and the Bombay Stock Exchange. EPFO field officials across the country have been trained through hybrid programs to answer applicant questions. The Exemption Division at EPFO Head Office has also coordinated with the Ministry of Finance and the Income Tax Department to share data on tax-recognized trusts, making it easier to identify eligible establishments and cross-verify their status.
What happens next
EPFO regional offices are actively following up with establishments to encourage timely submission of applications. Eligible PF trusts are advised to submit their regularization applications before the 28 December 2026 deadline to retain their income tax exemption benefits and achieve formal compliance. Applications submitted after the deadline will not qualify for amnesty protection.