EPFO Introduces One-Time Amnesty Scheme for Private Provident Fund Trusts

The Employees’ Provident Fund Organisation (EPFO) has announced a one-time amnesty scheme aimed at providing relief to private provident fund trusts. The initiative is designed to help establishments regularise their income tax exemption status without facing penalties for past non-compliance.

According to a statement issued by the Ministry of Labour and Employment, the transitional window under the EPF Scheme 2026 was introduced on June 29, 2026, making the amnesty provisions valid for a period of six months. Ministry sources indicate that 46 private trusts have already shown interest in utilizing the scheme to have their Provident Fund Trust exemption status recognised under the Income Tax Act, 1961.

To qualify, private trusts are required to hold a formal exemption order granted under section 17 of the Employees’ Provident Funds and Miscellaneous Provisions (EPF&MP) Act, 1952, or section 143 of the Code on Social Security (CoSS), 2020. Overall, the EPFO anticipates receiving a total of 105 applications for case processing out of approximately 3,000 EPF exempted trusts currently operating across the country.

The scheme offers several key benefits alongside retrospective regularisation of exempt status. These include waivers for certain compliance requirements outlined in the CoSS, 2020, such as minimum employee headcount thresholds, corpus size stipulations, and the standard three-year compliance rule. Following retrospective regularisation, an establishment retains the option to comply either as an exempt or an unexempt establishment, as noted by the Ministry.

In parallel, the EPFO has contacted the Income Tax Department to request details regarding PF trusts recognised under the Income Tax Act. The EPFO has suggested cross-verifying each establishment to confirm whether they hold formal exemptions under the EPF&MP Act, 1952, or the CoSS, 2020, prior to granting or withdrawing IT Act recognition.

To build awareness ahead of the December deadline, the EPFO has launched an extensive stakeholder outreach campaign.

"The introduction of a one-time amnesty scheme by the EPFO offers a practical pathway for private provident fund trusts to clear historical compliance hurdles without the burden of retrospective penalties. With around 3,000 exempted trusts in the country and 105 expected applicants, this transitional window allows businesses to realign their legal and tax statuses under the EPF Scheme 2026 and the Code on Social Security. Stakeholders should carefully evaluate their compliance structures before the December deadline to make the most of this regulatory relief." — Dr. Shishir Gupta, Founder & CEO, StartupLanes