TDS (Tax Deducted at Source) is applicable on pre-mature EPF (Employees Provident Fund) withdrawals of Rs 50,000 or more with effective from June 1st, 2015. Also, EPF withdrawals are liable to income tax if withdrawn before five years of service. You are actually allowed to withdraw (legally) only if it has been more than two months that you are out of work and your are still unemployed.
Does this mean that you can not withdraw your Provident Fund till you retire? Are there any options to partially withdraw your EPF balance, without getting taxed?
In this post, let us learn about EPF Partial Withdrawals / Advances rules and conditions, various options that are available to an EPF subscriber to claim partial PF withdrawals and the procedure to apply for EPF advance / loan.
Read Latest article : New EPF Withdrawal Rules 2025-26 | Big Relief, Bigger Responsibility for 30 Crore Subscribers
Below are the various reasons for which you can make a partial withdrawal from your EPF Account. These partial withdrawals are usually computed on the basis of your monthly salary or contributions made so far.
(The definition of SALARY for EPF calculation is : Salary = Basic + Dearness Allowance. So, salary here does not mean your Take Home salary. Also, the ‘number of years of service’ is the total number of years you have worked / contributed to EPF. It can be with multiple employers. The amount of advance/withdrawal is not required to be refunded under normal circumstances. If the amount is not utilized, the same should be refunded with penal interest)
You can withdraw up to 90% of EPF Balance (Employee share and interest on that+Employer share and interest on that) or the cost of the construction of property whichever is less. You are allowed to withdraw only once in your working life from the EPF Account to fund the construction, purchase or repayment of a housing loan.
To avail this option, you should have completed 5 years 3 years of service (with effective from 12-April-2017) to purchase or build the house. For buying land or site, the withdrawal amount can be 24 times of your basic wage and should have completed 3 years of service. (Kindly note that as per EPFO’s staff, if you are purchasing from a builder directly, then the minimum PF membership is still considered as 5 years only.)
Your accumulated EPF balance must be more than Rs.20,000. If your spouse is also the EPF member, then the combined balance will be considered for the eligibility.
Henceforth, the EPFO will not transfer the Advance amount to EPF member (employee’s) account. The amount will be credited to Cooperative society, Central Government, a State Government, or any Housing Agency under any Housing Scheme or any promoter or builders as the case may be, in one or more than one installments.
If the amount of such withdrawal is more than the actual cost or expenses of acquiring the property, then you have to refund such excess amount to EPFO in lump sum within 30 days from the date of allotment / completion of project / alteration of house etc.,
In case, you do not utilize the EPF advance amount completely for the said purpose, you have to refund the entire amount to the EFPO account within 15 days.
Below table has all the required details.
Below is the standard ‘Declaration Form‘ provided by the EPFO. The EPF member has to submit this form in case the ‘partial withdrawal’ is for HOUSING purposes. There is no need to enclose any other documents like copy of Sale Deed, Building Sanction plan, Encumbrance Certificate etc., The form has to be signed by the employee and the employer. Click on the below image to download the ‘Declaration Form Template’. This standard declaration form will be discontinued from Feb 2017. Henceforth, there is no need to submit this form (latest update as on 22/Feb/2017)
For obtaining EPF advance for purchase of house/site, employee(s) have to now submit application letter as below;
Latest Update (22-February-2017) :
EPFO has introduced new composite, single page and common Withdrawal form for all types of Withdrawals. This new Composite Claim Form (CCF) will now replace all the existing withdrawal Forms 19, 10C & 31 (both UAN & Non-UAN based). Kindly read this latest article @ New EPF Composite Claim Form | Single Page Form for different types of PF Withdrawals (Full / Partial).
If you are prepaying the debt (loan), you should have completed at least 10 years of service. To avail this provision, you need to submit Loan certificate / statement to your employer, along with From 31 (form for EPF partial withdrawal),.
The withdrawal amount that is admissible for this reason can be least of the below;
i) 36 times of your monthly salary (or)
ii) Total contribution (or)
iii) total outstanding home loan amount
You can now use your EPF balance to repay your home loan EMI either fully or partly. You can instruct the EPFO to deduct monthly amount from your PF balanced and the same will be transferred to your Loan account, as long as there is sufficient EPF balance in your account. This transfer will be active as long as you are the member of EPF. Once your membership of EPF ceases, then EPFO will stop to repay the loan.
You need to submit below authorization letter to EPFO;
The EPFO allows advance withdrawals whenever you need funds for medical treatment for yourself or a family member (spouse, children or dependent parents). No minimum years of service is required. However minimum one month of hospitalization is a must.
The advance can be taken for all major surgical operations or for treatment of critical illness. You have to submit proof of hospitalization, leave certificate along with Form 31, in case the funds are for your own treatment. (Latest Update (28-Apr-2017) : For partial withdrawal towards medical treatment, now there is no need to submit any medical certificate or document. For more details, kindly read – ‘EPF advance for medical treatment‘)EPF Partial Withdrawals for Education or Marriage Expenses
You can make a partial withdrawal for marriage of your children, brother / sister and yourself if you have completed seven years in service.
You can also make a partial EPF withdrawal for meeting education expenses of your children. Do note that only ’employees contribution’ is allowed to be withdrawn.
An employee who is physically challenged can apply for EPF partial withdrawal for purchasing any equipment that can minimize the hardship on account of handicap.
After attaining 54 years of age and within one year before retirement, a partial withdrawal of up to 90% of PF amount is allowed.
You need to submit EPF Partial Withdrawal form i.e., Form no 31 along with the required documents / proofs to your Employer. In EPF’s Advance form no 31, you need to provide your personal, PF account, salary and bank account details. Once the claim is processed, you will receive direct credit to your bank account.Do note that only after your Employer verifies your partial withdrawal application will the EPF office processes it.
Latest Update (22-Feb-2017) : With effective from Feb 2017, Form 31 will be replaced with new EPF Composite Form. Kindly click here to know more.
Your EPF contributions / savings are meant for your retirement (long-term). So, think twice before you withdraw your PF money. Try out all the options and sources to fund your expenses or needs. EPF Partial Withdrawals should be your last resort.
Latest Update (26-March-2020) : EPFO members can now withdraw up to 75% of the PF balances limited to 3 months wages as non refundable advance.
Latest News : You can now submit PF new claim forms directly to EPFO office without your Employer’s attestation. Download New Composite Claim Form. Click here for complete details.
Latest update (22-June-2017) : EPFO (Employees Provident Fund Org) & HUDCO (Housing & Urban Development Corp) plan to tie up for providing housing subsidy to members of EPF Scheme, under Pradhan Mantri Awas Yojana. As per the recent notification, EPFO now allows its subscribers who want to buy a house property from Housing Societies / Agencies to withdraw up to 90% of their EPF accumulations to buy homes.
Latest Update (27-June-2018) : EPF Subscribers who resign from their service can now withdraw 75% of their total Provident Fund (PF) kitty after one month from the date of cessation of service. This will be considered as a Partial PF withdrawal (Advance).
Continue reading : ‘Online EPF Claim submission : Process Flow & Eligibility Conditions‘
(Source & Reference: EPFO. Photo Credit : rediff.com) (Post last updated on : 02-Oct-2023)
This post was last modified on December 22, 2025 11:07 pm
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View Comments
I have completed over 20 years of EPF. My 36 months basic is more than the accumulated EPF. I want to take advance for housing loan repayment.
1. How do I calculate the money I can withdraw?
2. Does this withdrawal attract income tax? If yes, how is the tax calculated?
Dear Mr Bhat..
1 - Kindly refer to table num-1.
2 - It is tax-exempt.
Thanks for the prompt response. I understand from table 1 that the amount that can be withdrawn is accrual of employer's as well as employee's contribution. Is it to the last rupee or something will be kept as pension fund?
Dear Ram Bhat..The total available EPF balance is considered for the calculation purposes. EPS balance is a different one, you may check your EPF passbook.
Hello Sir,
My last day of working is 28 Sep 2016, so at what time i can apply for PF withdrawal , i want withdrawal this ASAP.
Dear Shubham ..After 60 days of being unemployed..
Dear Afrikaans,
i am planning to purchase a site using the partial withdrawal facility, i have the declaration form filled with all the required details , my question is after the approval for the same at any point can i purchase a different site from what is mentioned on the declaration form
also wanted to know should we submit sale deed and other documents after the purchase of the site to PF office
Thanks in advance
Binu
Dear Binu ..I believe that you can buy a different Plot/site and there is no need to submit any documents after the approval of claim (but if asked for, you may have to submit).
My PF account is contiuing for last 10 years but recentely i changed my organisation and i have been to 1 year now.
Am i eligible for partial claim during my new purchase of flat.
Dear Sarat..Have your transferred your old EPF a/c monies to your new EPF a/c?
Yes its been transfered from old EPF to new EPF. Am i elgible to get some partial amount(how much ?) if it is yes do i need to go through with my employer to claim the same.
Dear Sarat,
Yes, you can make partial withdrawal. Kindly refer to Table numb 1 in the above article.
If your KYC details are verified by your employer then you can submit UAN based new Advance withdrawal form to EPFO directly.
Do i need to pay tax for this PF adavance withdrawal amount? what is the percentage of tax i need to payan when.
Dear Sarat ..No taxes are applicable.
Dear Sreekant,
I have completed only 5 years in my new company. Can I apply for EPF Partial Withdrawals for Education purpose for myself.
Thanks,
Ramesh
Dear Ramesh ..The minimum number of years is 7 years for the said purpose.
Dear SreeKanth,
I am planning to withdraw my PF from my old Company where i resigned in March 2015 .
As i am not staying in INDIA from last 1.5 years and have no employment in INDIA is it possible to withdraw whole PF without any TAX.
Any guidance on this is much appreciated!
thanks
br//
Varun
Dear varun ..Yes you can withdraw full PF balance.
Read: EPF withdrawals & new TDS rules.
Hi- I have submitted form 31 for marriage purposes. I still haven't received the money. Where can I check the status?
I bought a flat in march 2016, am i eligible to apply for loan withdrawal under purchase of flat clause. I have completed 5.9 years of service .
Dear mohit ..Do you have home loan on it?
yes i do have home loan from SBI
also i have not the possession of flat, as it is under construction
Dear mohit ..If you want to re-pay the home loan (part-pay) then minimum number of service years is 10 years.
to be precise under this "For Purchase of House / Flat, Construction of House and acquisition of Site". so just want to know am i eligible as i have done y agreement with the builder
Dear mohit ..I believe you are eligible to make a partial withdrawal.
i dnt want to pay home loan , i want my pf withdrawal under the clause construction of home\flat which requires 5 yrs of service completion. as i need to pay builder 20% amount from my pocket
Hi,
My Dad is working in MNC company and his age is 52. while comming to point i purchased one Flot in appartment now my dad thought to withdraw his PF amount and to give me for the repayment of loan amount , here problem is he was not even a CO-Applicant for the home loan so is it possible with these reason can hw withdraw Ammount??
Please help me in this Question
Dear Satya..I believe thatit is not possible.
Dear Sreekanth,
I purchased a land last year (registered in my name) and now want to construct a house over that.
Please tell me what documents would be needed to be submitted before the pf office for PF advance withdrawal.
Thanks in advance!
Regards
Faiz
Dear Faiz ..You need to submit Form 31 and self-declaration form (template provided in the above article). Kindly note that the required documents list is also provided in the declaration form.
Hello Sreekanth,
Thank you very much for your valid information on epf. I am under suspension and going to retire next year. I applied for 90% epf advance. But the company as a coercive method not processing my application. I am a member of EPF TRUST MEMNBER of my company. In order to get 90% epf advance, what are the actions I need to take further in this connection. Please clarify
Dear balamurali ..If they are not co-operating then you can submit your grievance to EPFO, kindly visit this link.
May I know if your KYC details (Aadhar/Bank Account /PAN) have been verified by your employer?
I am a member of TANCEM EPF TRUST and due for superannuation on31-05-2017. I have applied for 90%advance vide para 68NN of EPF rules1952.TANCEM is a statePSU with HQS at chennai.Ihave completed 57 years of age and due for superannuation within nine months from now.I have applied to the trust for advance thro properchannel on 01-06-2016.Even after three months and two reminders I could not get even a reply.I am under suspension for the past 18 months.ONLINE application to EPFO chennai (grievance redressal) was simply rejected stating the reason that since TANCEM is exempted and having their own trust my greivance could not be attended at EPFO Chennai.Please advise me with the steps to be taken by me to get the advance from my employer.Looking forward to your kind advice. Regards