New Amnesty Scheme: Companies with Private PF Trusts Granted 6 Months to Certify Compliance

On July 12, 2026, the Ministry of Labour & Employment announced the introduction of the Amnesty Scheme, 2026, aimed at providing private provident fund (PF) trusts a unique opportunity for regularisation under the Income Tax Act, 1961. This scheme, effective for six months starting from June 29, 2026, will benefit companies that lack formal exemption notifications from either the central or state governments but seek to regularise their trust status. Eligible establishments must either comply retrospectively or opt for prospective compliance as un-exempted establishments to avail of this scheme.

The Amnesty Scheme is significant for common citizens as it provides a pathway for their employers to regularise provident fund trusts that may not have met statutory requirements, thereby enhancing employees’ financial security. By allowing retrospective recognition and waiving minimum headcount and corpus size rules, the scheme effectively removes barriers for smaller businesses that may not have been able to comply with previous regulations. It also offers relief from pending assessments for dues and damages, thereby encouraging employers to comply with labour laws and secure their employees’ interests.

In the long term, this initiative signals the government’s commitment to improving compliance within the private sector and reinforcing the legal framework surrounding employee benefits. The withdrawal of pending assessments and the abatement of past orders will likely prompt more establishments to formalise their trust status, contributing to broader financial inclusion and social security measures. Stakeholders, including the Employees’ Provident Fund Organisation (EPFO), are expected to intensively monitor the responses to this scheme, and further adjustments may be anticipated depending on its uptake and effectiveness in achieving the stated objectives.

Source: The Hindu

(Expert Note: This report was independently prepared by the Wealthova Economy team.)