EPFO Offers Amnesty To PF Trusts Until December 28

The Employees’ Provident Fund Organisation (EPFO) has introduced a one-time Amnesty scheme for Provident Fund (PF) Trusts that are recognised under the Income Tax Act but lack a formal exemption order under provident fund laws.

This scheme, which is available until December 28, 2026, allows eligible PF Trusts to retrospectively regularise their exemption status. The Amnesty provisions were introduced as a transitional measure under the Employees’ Provident Fund (EPF) Scheme 2026, notified on June 29.

To be eligible for the scheme, PF Trusts must be recognised under the Income Tax Act, 1961, but not have a formal exemption order under Section 17 of the EPF&MP Act, 1952, or Section 143 of the Code on Social Security, 2020. The EPFO has issued detailed operational guidelines covering the application process and other procedural requirements.

The scheme provides relief from certain requirements prescribed under the Code on Social Security, including minimum employee headcount, minimum corpus size, and the three-year compliance requirement. After retrospective regularisation, establishments can choose whether to continue as exempt or unexempt establishments.

The EPFO has launched an outreach campaign to identify trusts that could benefit from the scheme. As part of this effort, the retirement fund body has approached the Institute of Chartered Accountants of India (ICAI), asking it to circulate details among its members. The government believes chartered accountants conducting statutory and Income Tax audits can help identify eligible PF Trusts and guide them towards regularisation before the deadline.

The six-month Amnesty window provides an opportunity for PF Trusts to regularise their status and avoid any potential penalties. The EPFO's move is expected to benefit numerous PF Trusts that are currently not in compliance with the relevant laws.

In recent years, the EPFO has taken several steps to simplify the process of compliance for PF Trusts and to encourage more establishments to provide social security benefits to their employees. The introduction of the Amnesty scheme is another step in this direction.

The scheme is also expected to help the government in its efforts to increase the coverage of social security benefits to more workers. By regularising their status, PF Trusts can ensure that their employees receive the benefits they are entitled to, which can help to improve their overall welfare.

In conclusion, the EPFO's Amnesty scheme for PF Trusts is a welcome move that can help to regularise the status of numerous trusts and ensure that they are in compliance with the relevant laws. The scheme is available until December 28, 2026, and eligible PF Trusts should take advantage of this opportunity to avoid any potential penalties and to ensure that their employees receive the social security benefits they are entitled to.

The introduction of the Amnesty scheme is a significant development in the context of social security benefits in India. It reflects the government's commitment to simplifying the process of compliance and to encouraging more establishments to provide social security benefits to their employees. The scheme is expected to have a positive impact on the welfare of workers in India and to help the government in its efforts to increase the coverage of social security benefits to more workers.