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The Employees’ Provident Fund Organisation (EPFO), under the Ministry of Labour & Employment, has introduced “AMNESTY, 2026”, a one-time special scheme providing a six-month window for establishments operating Provident Fund (PF) Trusts recognised under the Income Tax Act, 1961, but which have not yet obtained formal exemption under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, or the Code on Social Security, 2020.
The scheme was notified on 29 June 2026 through Gazette notification G.S.R. 525(E) as part of the newly notified Employees’ Provident Fund Scheme, 2026. It will remain valid for a period of six months, i.e., up to 28 December 2026, with a possible extension of up to six months on the recommendation of the Central Board of Trustees.
Why Was the Scheme Introduced?
The Finance Act, 2026 has aligned the Income Tax framework governing recognised provident funds with the statutory and administrative provisions of the Employees’ Provident Fund & Misc. Provisions Act, 1952. Recognition under the Income Tax Act is now available only to provident funds that have obtained exemption under Section 17 of the EPF & MP Act, 1952 or Section 143 of the Code on Social Security, 2020.
This created a regulatory gap for establishments operating PF Trusts recognised under the Income Tax Act but lacking formal EPF exemption. AMNESTY, 2026 bridges this gap by enabling retrospective regularisation and abatement of pending legal proceedings.
Eligible Establishments
The scheme applies to establishments that have been operating a PF Trust recognised under the Income Tax Act, 1961, but do not possess a formal exemption notification from the appropriate Government viz. Central or State Government, as the case may be.
Eligible establishments are categorised into two groups:
| Category | Description |
| Category I | Establishments seeking retrospective regularisation that have already started compliance as an un-exempted establishment or are opting for prospective compliance as an un-exempted establishment. Further sub-categorised into: (i) Trusts maintained for excluded employees, or (ii) Trusts maintained for non-excluded employees. |
| Category II | Establishments seeking retrospective regularisation that choose to continue as an exempted establishment under the Code on Social Security, 2020. |
Detailed Dispensations Available under AMNESTY, 2026
5.1 Category-I Establishments
Category-I establishments shall be eligible for the following dispensations:
| Sr. No. | Dispensation / Relief |
| (i) | Retrospective Exemption: Retrospective exemption of the establishment and recognition of the Trust from inception up to the cut-off date, i.e., the date from which the establishment commences (or, for prospective cases, proposes to commence within the validity period) compliance as an un-exempted establishment |
| (ii) | Deemed Compliance: The period of the Trust’s operation shall be deemed to satisfy the three-year compliance requirement otherwise prescribed for grant of exemption under the Code |
| (iii) | Waiver of Minimum Requirements: Waiver of the minimum employee-strength and/or corpus criteria otherwise prescribed for grant of exemption under the Code |
| (iv) | EPS Transfer Permission: Permission for transfer of Provident Fund balances to the Employees’ Pension Scheme, 1995 and/or the Employees’ Pension Scheme, 2026, in respect of non-excluded employees in service as on the cut-off date, who were mandatorily required to be enrolled under the Employees’ Pension Scheme, 1995 but had not been so enrolled |
| (v) | No Proceedings for Dues: No proceeding for assessment of dues shall lie against the establishment merely on the ground of absence of formal approval/notification of exemption, provided the rate of contribution and interest credited to member accounts is at par with, or better than, the statutory rate; any such proceeding already pending shall stand withdrawn and abated |
| (vi) | No Proceedings for Damages/Interest: Similarly, no proceeding for assessment of damages and interest shall lie on this ground alone, subject to the same condition as to the rate of contribution/interest; any such proceeding already commenced but not completed shall stand withdrawn and abated |
| (vii) | Continuing Liability for Left-out Employees: Notwithstanding (v) and (vi) above, assessment of dues, damages and interest shall continue to apply in respect of left-out employees, and in respect of delay in transfer of funds from the establishment to the Trust, or delay in transfer of funds under paragraph 28 of the Employees’ Provident Funds Scheme, 1952 |
| (viii) | Void Ab Initio: Where an order of assessment of dues, damages or interest has already been completed and issued, such order shall be treated as void ab initio, and any amount already recovered shall be adjusted against future dues of the establishment, subject to the establishment’s right of appeal under section 23 of the Code |
| (ix) | Surcharge Liability: The establishment shall continue to be liable for surcharge for any violation of, or deviation from, the prescribed pattern of investment applicable to exempted establishments, for the period from inception of the Trust till the date of compliance as an un-exempted establishment |
5.2 Category-II Establishments
Category-II establishments shall, in addition to the requirements specified in Para 5.1, also comply with the provisions of the Code, the rules framed thereunder including the prior conditions specified therein, and the EPF Scheme, 2026.
Employer Responsibilities
Establishments availing AMNESTY, 2026 must comply with the following 11 responsibilities:
| Sr. No. | Responsibility |
| (i) | File an application in Annexure-I for availing the benefit of AMNESTY, 2026 |
| (ii) | Furnish the list of employees in service/contributing as on the cut-off date, as well as those who have left service but whose accounts remain unsettled, together with accumulations to their credit; any liability arising from disputes relating to service/benefits for the period prior to the cut-off date shall be borne by the employer |
| (iii) | Ensure that the Trust’s accounts, including individual members’ ledger accounts, have been audited by a Chartered Accountant (CA) as on the cut-off date |
| (iv) | Continue to handle disputes relating to membership, contributions and benefits of employees who left service in the past and whose accounts were settled by the Trust; liability arising from such disputes for the period prior to the cut-off date shall be borne by the employer |
| (v) | Furnish details of investments and transactions from inception of the Trust till the cut-off date for verification by experts/expert agencies as may be specified by the Commissioner |
| (vi) | Make good any losses arising from sale/purchase of securities by the Trust, and pay any surcharge or penalty for deviation from the prescribed investment pattern |
| (vii) | Bear liability for shortcomings/irregularities noticed in the management of accounts, funds and investments during Compliance Audit/Special Audit of the Trust |
| (viii) | Ensure transfer of corpus from the Trust to the Fund, in the manner and time frame communicated by the Commissioner, where not already done |
| (ix) | Render full cooperation and produce records of the Trust/establishment on demand by EPF authorities |
| (x) | Ensure completion of the Compliance Audit and Special Audit within three (3) months from the date of application for AMNESTY, 2026 |
| (xi) | Bear the charges for the Special Audit, as intimated by the EPF authorities |
Procedure to be followed by EPFO
The EPFO shall follow the following 6 procedural steps:
| Sr. No. | Procedure |
| (i) | Accept applications in Annexure-I from establishments and provide guidance/support in completion of formalities |
| (ii) | Undertake, in parallel, the Compliance Audit and assignment of a Special Audit agency, with the Special Audit to be completed within six (6) months of the establishment submitting the Trust’s audited accounts and all documents sought by the EPFO |
| (iii) | Communicate shortcomings, dues, surcharges and penalties payable by the establishment in a time-bound manner, and address objections/grievances raised by the establishment within a period of 15 days from the date of receipt of application |
| (iv) | Ensure issuance of public notice of the establishment’s intention to comply as an un-exempted establishment and regularise its exemption status, and address objections/grievances raised by affected persons |
| (v) | In cases involving a prospective cut-off date, ensure, upon issue of Government orders, smooth transfer of funds from the Trust to the Fund and crediting of balances to individual accounts |
| (vi) | Allow a time frame of six (6) months to the establishment for completion of audits and updating of accounts from the date of application |
Additional Conditions
| Sr. No. | Condition |
| (i) | The rate of contribution and interest shall not be less favourable than that admissible to employees of un-exempted establishments; any deficiency in interest or contribution shall be made good by the employer |
| (ii) | The provisions of VISHWAS, 2026 shall apply in respect of levy of damages by way of penalty under section 14B of the Repealed Act and the Employees’ Provident Funds Scheme, 1952 |
| (iii) | The provisions of the Employees’ Enrolment Campaign, 2026 shall apply in cases involving evasion in membership |
| (iv) | The establishment shall update the Know Your Customer (KYC) details – UAN, PAN, Aadhaar, Bank Account number of employees participating in the Trust |
Final Orders Timeline
The appropriate Government will issue final orders regarding admissibility of AMNESTY, 2026 within three (3) months of recommendation of the Central Board of Trustees, to the extent possible.
Operational Guidelines
Receipt of Application
- Establishments shall submit the application in Annexure-I to the jurisdictional Regional Office/District Office, followed by physical submission.
- Simultaneously, establishments may indicate their willingness through an expression of interest by email to the Exemptions Division, Head Office at: rc.exemption@epfindia.gov.in
- The Dealing Assistant shall register the application, verify completeness (list of employees, CA-audited accounts, investment details, KYC status, corpus-transfer status), and place it before the Section Supervisor/APFC for scrutiny.
- Depending on the category, the New Simplified SOP on EPF Exemption shall be followed – Chapter 3 (Surrender of Exemption) for Category-I and Chapter 2 (Grant of Exemption) for Category-II.
Compliance Audit and Special Audit
- RPFC-I/OIC shall get Compliance Audit initiated and simultaneously arrange assignment of a Special Audit agency.
- The Special Audit shall be completed within three (3) months from the date of application; the cost shall be borne by the establishment.
- Findings of the audits, including shortcomings, dues, surcharges or penalties, shall be communicated to the establishment in a time-bound manner, and objections raised shall be disposed of within 30 days before further processing.
Public Notice
- The RPFC-I/OIC shall issue a public notice of the establishment’s intention to regularise/comply as an un-exempted establishment, inviting objections from affected persons, and shall dispose of such objections/grievances before recommending the case further.
Recommendation and Forwarding
- On satisfactory completion of audits and disposal of objections, the RPFC-I/OIC shall forward the case in E-file, with a reasoned recommendation, to the Zonal Office, for examination and further transmission to the Head Office for placing before the EEC and CBT.
- Field offices shall ensure timely submission of complete records so that no part of this period is consumed on account of delay attributable to EPFO.
Post-Approval Actions
- Withdrawal/abatement of pending proceedings under section 14B of the Repealed Act/section 128 of the Code, or assessment of dues, as applicable
- Transfer of corpus from Trust to Fund, wherever applicable
- Updation of the establishment’s compliance/exemption status in EPFO records
- Monitoring of recovery of surcharge or deficiency in interest/contribution, if any
- Wherever proceedings are pending as covered under sub-paragraph 6(v)/(vi), the RPFC-I/OIC shall cause the proceedings to be withdrawn and such proceedings shall abate, upon the case being regularised under AMNESTY, 2026
Preparatory Activities and Review Mechanism
Preparatory Activities
| Activity | Responsibility | Timeline |
| Identification of Trusts within jurisdiction recognised under Income Tax Act but not granted formal EPF exemption | RPFC-II/APFC (Exemption Cell) | Within 15 days |
| Designate a Nodal Officer (not below APFC) as AMNESTY, 2026 Nodal Officer | RPFC-I/OIC | Within 7 days |
| Constitute an AMNESTY 2026 Cell with sufficient officers/officials | RPFC-I/OIC | Within 7 days |
| Establish a dedicated AMNESTY Helpdesk (phone/email) | Nodal Officer | Within 7 days |
| Undertake outreach and publicity with Income Tax Department, ICAI, industry associations | Nodal Officer | Within 7 days; continuing throughout |
| Designate RPFC-I handling Exemption at ZO as AMNESTY, 2026 Coordinator | Zonal Office | Within 7 days |
Review Mechanism
- First Three Months: Weekly reviews by Zonal Offices covering applications received, audits initiated/completed, public notices issued, cases forwarded, proceedings withdrawn, pendency, and outreach activities
- Last Three Months: Fortnightly reviews focusing on cumulative progress, follow-up with non-applicants, cases pending beyond timelines, and systemic bottlenecks
In a Nutshell:
What is it?
A one-time, six-month scheme (29 June 2026 – 28 December 2026) for establishments operating PF Trusts recognised under the Income Tax Act, 1961, but lacking formal exemption under the EPF Act or the Code on Social Security, 2020.
Why was it introduced?
The Finance Act, 2026 made Income Tax recognition conditional upon obtaining EPF exemption. This scheme bridges the regulatory gap by enabling retrospective regularisation.
Eligible Categories
| Category | Description |
| Category I | Seeks regularisation while transitioning to un-exempted status (already commenced or opting prospectively) |
| Category II | Seeks regularisation while continuing as an exempted establishment under the Code |
Key Benefits / Dispensations
- Retrospective exemption from Trust inception up to cut-off date
- Deemed satisfaction of the 3-year compliance rule
- Waiver of minimum employee-strength and corpus criteria
- Abatement of pending proceedings for dues, damages, and interest (subject to contributions/interest being at par with statutory rates)
- Void ab initio treatment for completed assessment orders; recovered amounts adjusted against future dues
- Permission for EPS transfer for non-excluded employees
- Surcharge liability continues for investment pattern deviations
Employer Responsibilities
- File application in Annexure-I
- Furnish list of employees (in-service + left with unsettled accounts)
- Ensure CA-audited Trust accounts
- Handle past disputes; liability borne by employer
- Furnish investment details from Trust inception
- Make good investment losses; pay surcharge/penalty for deviations
- Bear liability for irregularities found in audits
- Transfer corpus from Trust to Fund where applicable
- Cooperate and produce records to EPFO
- Complete Compliance Audit & Special Audit within 3 months
- Bear cost of Special Audit
EPFO Procedure
- Accept applications and provide guidance
- Initiate Compliance Audit and assign Special Audit agency (Special Audit within 6 months)
- Communicate shortcomings/dues; address objections within 15 days
- Issue public notice inviting objections; dispose before recommendation
- Ensure smooth fund transfer for prospective cut-off cases
- Allow 6 months for audit completion and account updating
Additional Conditions
- Contribution/interest must be at par with or better than statutory rates; deficiency to be made good by employer
- VISHWAS, 2026 (damages) and Employees’ Enrolment Campaign, 2026 (membership evasion) apply where applicable
- KYC updation (UAN, PAN, Aadhaar, Bank Account) mandatory
Final Orders Timeline
Appropriate Government to issue final orders within 3 months of CBT recommendation, to the extent possible.
Operational Highlights
- Application to jurisdictional RO/DO; optional expression of interest to rc.exemption@epfindia.gov.in
- New Simplified SOP on EPF Exemption applies (Chapter 3 for Category I; Chapter 2 for Category II)
- Public notice to be issued before recommendation
- Review Mechanism: Weekly (first 3 months) / Fortnightly (last 3 months)
Consequences of Non-Availment
Establishments will be governed by the applicable provisions of the EPF Act or the Code on Social Security, 2020.
Disclaimer: The information provided in this article is for general informational and educational purposes only and does not constitute legal advice. While every effort has been made to ensure the accuracy of the information, the provisions of AMNESTY, 2026, the EPF Scheme, 2026, the Code on Social Security, 2020, and any related notifications are subject to official amendments, judicial interpretations, and case-specific applications. Employers, institutions, and individuals are strongly advised to consult qualified legal professionals, tax advisors, or certified compliance experts for specific guidance tailored to their circumstances. We do not accept any liability for any loss, damage, or legal consequence incurred as a result of reliance on the information contained herein.