The Employees’ Provident Fund Organisation (EPFO) has introduced the Amnesty Scheme 2026, offering a one-time opportunity for eligible establishments operating exempted Provident Fund (PF) Trusts to regularise their status under the Employees’ Provident Fund & Miscellaneous Provisions Act, 1952.
The six-month scheme, notified on June 29, 2026, is aimed at establishments whose PF trusts are recognised under the Income Tax Act but do not possess a formal exemption notification from the appropriate government. The initiative follows changes introduced through the Finance Act, 2026, which aligns the Income Tax framework governing recognised provident funds with the EPF Act.
Who can apply
The scheme applies to establishments operating provident fund trusts recognised under the Income Tax Act, 1961, but lacking exemption under Section 17 of the Employees’ Provident Fund & Miscellaneous Provisions Act, 1952.
The Finance Act, 2026 provides that recognition under the Income Tax framework will now be available only to provident funds that have obtained exemption under the EPF Act. Under the new scheme, eligible establishments will receive retrospective exemption under Section 17 of the EPF Act and Section 143 of the Code on Social Security, 2020.
Two categories of eligible establishments
The scheme covers two categories of employers. Category I includes establishments seeking retrospective regularisation of their PF trusts while either complying as un-exempted establishments or opting for prospective compliance under the un-exempted framework.
Category II covers establishments seeking retrospective regularisation while continuing to operate as exempted establishments under the Code on Social Security, 2020.
Major relief measures
The Amnesty Scheme offers several compliance and legal benefits for eligible employers. Retrospective regularisation will grant exemption status and trust recognition from the inception of the trust up to the designated cut-off date.
The scheme also waives key eligibility requirements under the Code on Social Security, 2020, including minimum employee strength, corpus size norms and the mandatory three-year prior compliance requirement.
In addition, pending proceedings relating to dues, damages and interest will be withdrawn and treated as abated, provided member accounts have received contributions and interest equal to or higher than statutory rates. Finalised past orders will be treated as void ab initio under the scheme.
Employer obligations
Eligible establishments must submit a formal application to the Central Government through the concerned EPFO Regional Office via email. Employers may also submit an expression of interest by emailing rc.exemption@epfindia.gov.in.
Financial accounts of the trust must be audited by a Chartered Accountant. Any special or compliance audit directed by EPFO authorities must be completed within three months of submitting the application.
Six-month application window
The Amnesty Scheme will remain open for six months from the date of notification, giving eligible establishments a limited window to regularise their exempted PF trusts and resolve long-pending compliance issues.
EPFO said detailed procedures, circulars and the Standard Operating Procedure (SoP) are available through its regional offices and official notifications to facilitate the application process.