Centre brings amnesty scheme for PF Trusts to regularise their status
The Central Government has introduced an amnesty scheme aimed at allowing provident fund trusts to regularize their legal standing under the Income Tax Act. This initiative ensures that existing funds can maintain their recognized status by adhering to updated exemption requirements.
The government has announced a new amnesty scheme for private Provident Fund (PF) trusts to regularize their status and align with current statutory requirements. This move is designed to simplify the compliance landscape for organizations managing their own retirement funds rather than relying solely on the state-run system.
According to the new guidelines, recognition under the Income Tax Act, 2025 will be strictly limited. Only those provident funds that have successfully obtained an exemption under Section 17 of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 will be eligible for continued recognition.
The scheme provides a window for trusts that have been operating without full compliance to rectify their paperwork and secure the necessary exemptions from the labor ministry. Failure to meet these criteria may result in the loss of tax benefits associated with recognized provident funds.
Source: Income Tax Act, 2025 and EPF Act, 1952.
