Section 121: Writing off of losses
Reviewed by Finin2min Editorial Desk · Last reviewed 30 August 2026
Section 121 — Governs writing off of losses and the rights, duties, powers or procedure expressly stated in this section. Key operative text: Subject to the conditions as may be prescribed by the appropriate Government, where any of the Social Security Organisations is of the opinion that the amount of contribution, cess, interest and damages due to it, under this…
The Code was commenced in stages: section 142 had earlier commencement, S.O. 5319(E) brought the specified provisions into force from 21 November 2025, and later commencement instruments must be read with the current India Code footnotes for the remaining clauses.
Provision / India Code ↗ · Official Act PDF ↗ · 2026 Central Rules ↗
Finin2min analysis — what the section actually does
Operative clauses
- Subject to the conditions as may be prescribed by the appropriate Government, where any of the Social Security Organisations is of the opinion that the amount of contribution, cess, interest and damages due to it, under this Code, is irrecoverable, the concerned Social Security Organisation may sanction the writing off of the said amount in such manner as may be prescribed by the appropriate Government:
- Provided that in the case of Provident Fund, Pension Fund or Insurance Fund, such writing off shall be specified in the Provident Fund Scheme or Pension Scheme or Insurance Scheme, as the case may be.
Provisos, explanations & qualifications
- Provided that in the case of Provident Fund, Pension Fund or Insurance Fund, such writing off shall be specified in the Provident Fund Scheme or Pension Scheme or Insurance Scheme, as the case may be. CHAPTER XI AUTHORITIES, ASSESSMENT, COMPLIANCE AND RECOVERY
Thresholds and timelines in the text
- No explicit day/month/year/hour/percentage/rupee expression was detected in this section text.
Actors expressly appearing in the text
Appropriate Government
Full statutory text — Section 121
121. Writing off of losses.—Subject to the conditions as may be prescribed by the appropriate
Government, where any of the Social Security Organisations is of the opinion that the amount of
contribution, cess, interest and damages due to it, under this Code, is irrecoverable, the concerned Social
Security Organisation may sanction the writing off of the said amount in such manner as may be prescribed
by the appropriate Government:
Provided that in the case of Provident Fund, Pension Fund or Insurance Fund, such writing off shall be
specified in the Provident Fund Scheme or Pension Scheme or Insurance Scheme, as the case may be.
CHAPTER XI
AUTHORITIES, ASSESSMENT, COMPLIANCE AND RECOVERYHow to apply this provision
- Primary statutory test — Subject to the conditions as may be prescribed by the appropriate Government, where any of the Social Security Organisations is of the opinion that the amount of contribution, cess, interest and damages due to it, under this Code, is irrecoverable, the concerned Social Security Organisation may sanction the writing off of the said amount in such manner as may be prescribed by the appropriate Government:
- Additional operative limb — Provided that in the case of Provident Fund, Pension Fund or Insurance Fund, such writing off shall be specified in the Provident Fund Scheme or Pension Scheme or Insurance Scheme, as the case may be.
- Qualification / exception to test — Provided that in the case of Provident Fund, Pension Fund or Insurance Fund, such writing off shall be specified in the Provident Fund Scheme or Pension Scheme or Insurance Scheme, as the case may be. CHAPTER XI AUTHORITIES, ASSESSMENT, COMPLIANCE AND RECOVERY
- Central Rule mapping — 51. Read the mapped provision together with this text rather than treating the concordance as a substitute for it.
- Evidence file — retain facts and records proving the role/status of: Appropriate Government.
Rules, forms and cross-references
Direct 2026 Central Rule mapping
Forms mapped
No prescribed form is directly mapped in the current concordance.
Other sections cited in this text
Related Labour Hub resources
A direct concordance is not exhaustive. Central/State jurisdiction, schemes, authority appointments, saved instruments and later notifications may change the practical route without changing the section wording.
Worked example
For a worker/member seeking a benefit connected with writing off of losses, the file should show coverage, service/contribution facts, the rule/scheme and prescribed form, and the calculation/payment. One statutory point to test is: “Subject to the conditions as may be prescribed by the appropriate Government, where any of the Social Security Organisations is of the opinion that the amount of contribution, cess, interest and damages due to it, under this Code, is irrecoverable, the concerned Social Security O” Also test the express qualification/proviso before concluding the result. Read the mapped Central Rule(s) 51.
Illustration only; it is not statutory text or a substitute for applying the actual facts, jurisdiction, current rule/scheme and official instrument.
Q&A — Section 121
What does Section 121 of the Social Security Code cover?
Section 121 — Governs writing off of losses and the rights, duties, powers or procedure expressly stated in this section. Key operative text: Subject to the conditions as may be prescribed by the appropriate Government, where any of the Social Security Organisations is of the opinion that the amount of contribution, cess, interest and damages due to it, under this…
What is the main legal requirement or power in Section 121?
The first operative clause identified from the official text is: “Subject to the conditions as may be prescribed by the appropriate Government, where any of the Social Security Organisations is of the opinion that the amount of contribution, cess, interest and damages due to it, under this Code, is irrecoverable, the concerned Social Security Organisation may sanction the writing off of the said amount in such manner as may be prescribed by the appropriate Government:” Read it with the remaining subsections and any proviso below.
Does Section 121 contain a proviso or explanation?
Yes. A qualification extracted from the official text is: “Provided that in the case of Provident Fund, Pension Fund or Insurance Fund, such writing off shall be specified in the Provident Fund Scheme or Pension Scheme or Insurance Scheme, as the case may be. CHAPTER XI AUTHORITIES, ASSESSMENT, COMPLIANCE AND RECOVERY”
What time limit, percentage or amount appears in Section 121?
No explicit day/month/year/hour/percentage/rupee expression was detected in the official section text.
Which 2026 Central Rules are linked to Section 121?
The current concordance maps Section 121 to Central Rule(s) 51.
Is Section 121 currently operative?
The Code was commenced in stages: section 142 had earlier commencement, S.O. 5319(E) brought the specified provisions into force from 21 November 2025, and later commencement instruments must be read with the current India Code footnotes for the remaining clauses.
Source & verification trail
Act: Code on Social Security, 2020 — official India Code PDF ↗
Central Rules: Social Security (Central) Rules, 2026 — G.S.R. 344(E), 8 May 2026 ↗
Official library: Ministry of Labour & Employment — Labour Codes ↗
Source check: 20 August 2026. Individual professional interpretation should be re-reviewed when the section, rules, notification, scheme, State overlay or controlling judgment changes.