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 Also, EPF withdrawals are liable to income tax if withdrawn before five years of service.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
Filing your Income Tax Return (ITR) is not just about meeting deadlines—it’s about choosing the…
Retirement planning in India is often misunderstood. Many people think any long-term savings or investment…
You’ve probably seen the same property quoted at different prices. One person says ₹60 lakh,…
Buying insurance is easy. Getting your claim settled—that’s where the real test begins. For any…
Gifting immovable property—like land, plots, or houses—is super common in India. Families often do it…
Most people believe that investing alone is enough to create wealth. But in reality, many…
This website uses cookies.
View Comments
Hi Sreekanth,
I have already purchased an apartment, registered it and moved into it(on Jan 2016). But during the time of purchase of the apartment my PF account was not 5 years old. Only in August 2016 my account would be 5 years old. Given this situation could I apply for withdrawal for purchase of home in August submit the registration and hand over documents for my apartment(which would show that the apartment was handed over in Jan 2016).
Regards,
Amala
Dear Amala,
I doubt if EPFO will accept your partial withdrawal request.
Do you have home loan on it?
Yes Sreekanth, I do have a home loan on it..
Dear Amala..If one has 10 year service, can make a partial withdrawal to part pay outstanding home loan amount.
Hi Sreekanth,
I am planning to take loan from PF for purchase of plot. Confused with the below, please could you comment.
Some say for purchase of plot Sale agreement needs to be registered. Some say Sale agreement copy is enought that is signed mutually between Purchaser and Vendor. Which is correct?
Also, incase i go for loan and as per sale agreement it will be mentioned that within 4 months from this date of signing full amount will be paid and it will be registered (Sale deed). In case it doesn't happen and if we cancel the agreement. What is the procedure? I need to give a check to PF stating the same that we cancelled?
Also, what is the interest they will charge? I read its 2%p.a is it right?
So if i get 10 lakhs, after 4 months i cancel. I need to pay 10,00,000 * 120 (days) * 2/100/365 = Rs 6500/- interest.
Dear Rohit,
I believe that 'Agreement of Sale' is enough along with self-declaration document. 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. I am not sure about the penal interest rate.
Hello,
Thanks for the details. I have a query. I worked for 3 years in India. Now i am persuing MS in US. is there any way i can withdraw my PF normally or for higher education?
And is there any way i can get PF transferred to my new account when i will get a job here in US.
Please suggest.
Dear Apoorva..The new notification does not say anything on this. One thing is sure that you can atleast withdraw your share + interest on it (subject to taxes, if any).
Hi Sreekanth,
i am purchasing the plot for rupees 10 lakhs rupees and withdrawn the 5 lakhs from pf amount. and another 5 lakhs rupees is taken home loan. vendor is saying that we need to register the property for the government value that is 4 lakhs.
will there any any income tax issues?
please suggest some options.
Dear Prasad,
The Govt value or guidance value is the minimum ceiling limit for the registration to be done.
However, if you are paying Rs 10 Lakh, you can get the registration done for Rs 10 L. You may have to bear the registration & stamp duties accordingly.
Hi Sreekanth, can you please let me know the process for partial PF withdrawl?
Hi srekanth,
I have worked in a company for 4years and planning leave the job next month. I want to dedicate my full time in prepation for govt. Job. So want to withdraw my full PF. If I can't withdraw full is there any other way to get the full amount
Dear Jyoti..You can withdraw your share + interest only, also it is subject to TDS as you are withdrawing within 5 years.
Kindly read:
EPF withdrawals & TDS rules.
Latest EPF withdrawal rules 2016.
Sir,
We ca n withdraw own share & what about rest of amount??? When we will receive it??
Pls suggest
Dear Gaurav..Kindly go through this : Latest EPF withdrawal rules..
Dear Shrikant Ji..
I, Gaurav Mishra former employee of XYZ PVT. LTD’ from 01-jun-2013 to 20-jan-2015
Now, I have changed my employer/company since 21-Jan-2015.
My qusetion is that, I’ve resigned my previous employer.
More than 1 Year time has been passed away from my resignation date
There is showing- EE amount- Rs.15041,
ER amount- Rs.4725
EPS amount- Rs. 9,590
In my XYZ PVT. LTD account
Now, I want to withdraw my given above whole PF amount. Suggest me the procedure for the same
In above given amount, which sums I can receive??? EE OR ER OR EPS OR WHOLE AMOUNT
My previous employer XYZ PVT. LTD says that, you cannt withdraw nothing.. Is my employer XYZ PVT. LTD is right???
Pls suggest, I will be highly obliged to you...
Thanks,
Gaurav Mishra
Dear Gaurav,
As you are currently employed, you can't withdraw your old PF a/c money. You have to transfer it to your new EPF a/c.
Dear Shrikant Sir,
Namakar
Now as per new rules as on dated 01-Apr-2016, Can I withdraw now full amount from my previous employer????
My earlier question was asked on dated March 16, 2016 at 1:11 pm given as below......
Dear Shrikant Ji..
I, Gaurav Mishra former employee of XYZ PVT. LTD’ from 01-jun-2013 to 20-jan-2015
Now, I have changed my employer/company since 21-Jan-2015.
My qusetion is that, I’ve resigned my previous employer.
More than 1 Year time has been passed away from my resignation date
There is showing- EE amount- Rs.15041,
ER amount- Rs.4725
EPS amount- Rs. 9,590
In my XYZ PVT. LTD account
Now, I want to withdraw my given above whole PF amount. Suggest me the procedure for the same
In above given amount, which sums I can receive??? EE OR ER OR EPS OR WHOLE AMOUNT
My previous employer XYZ PVT. LTD says that, you cannt withdraw nothing.. Is my employer XYZ PVT. LTD is right???
Pls suggest, I will be highly obliged to you…
Thanks,
Gaurav Mishra
Dear Gaurav,
As you are currently employed and contributing to EPF scheme (assuming), you can not withdraw your PF funds.
Read: EPF partial withdrawals for specific purposes..
Dear Shrikant JI
Namaskar
Now as on dated 19-04-2016 all old rules has been returned back, so as per my earlier question, Now I can withdraw my Previous employer's whole PF amount??
Thanks & Regards,
Gaurav Mishra
Dear Gaurav..If you are employed and contributing to EPF scheme then you can not withdraw, you can only transfer the funds to the new EPF a/c.
If you are not employed then you can withdraw full PF balance.
Dear Sir,
Thanks for information..
1 more question is that, according to New Rule : An employee can only withdraw his share on resigning from the job. You cannot withdraw full EPF amount before attaining the retirement age
Will above rule apply for me?????
IF yes, that means I can withdraw my EE amount & what will the procedure for withdrawal
Please suggest.
Regards,
Gaurav Mishra
Dear Gaurav..Read: Latest EPF withdrawal rules..
Hi,
I want to construct house on a land owned by my father.
Can I get a PF advance in that case? What if I make myself joint owner of house?
Thanks
Dear Manoj..I believe that you have to be the co-owner of the property to get PF advance.
Hi Sreekanth,
Thanks for providing all the details regarding the PF withdrawal options and rules. I am working in a Private Organization for ~ 9 Years and the EPFO Account is also ~9 Years. I have applied for a PF Withdrawal for Purchase of Flat using the Registered Flat Sale Deed and that has been approved by EPFO and money has been disbursed to me. Of the Total Flat Value demanded by promoter, I have paid for 50% using my own reserve and Housing Loan taken from LICHFL. I plan to use the PF withdrawal for making payment for the rest of the 50% demand of the Flat promoter.
I have 2 Questions regarding the PF withdrawal amount:
1) Can I use part of the money to make a Pre-payment of Housing Loan to LICHFL or I can use it for Payment to promoter for the rest of Demands only ?
2) EPFO has mentioned that within 6/12 months, I need to submit Registered Title Deed/ Completion certificate of the Flat or else the amount disbursed will be recovered in lumpsum with penal interest. The Rate at which the Flat construction is in progress, it may not be completed in next 12 months and that is not in my control. Will the Registered Sale Deed document be sufficient or do I need to write to EPFO requesting for an extension of the timeline for providing the documents requested based upon the construction completion date.
Best Regards,
Aniruddha
Dear Aniruddha,
1 - You can use it either way. But ideally if you look at the new EPF partial withdrawal form, the EPF member has to provide the 'loan agency' details in the form and the EPFO would issue the cheque in their name.Since you have already received the money, I believe that you can use it as per your requirement.
2 - I guess Registered Title deed is enough.
Dear Sreekanth - Sincerely appreciate your prompt reply and guidance regarding my query
Dear
Sreekant
I have a land which i purchase recently & register with my name , Now i want to prepare house on this land
so i want to partially withdrawal my pf amount .
So please tell me which document i need to submit to pf office .
Dear Amit,
If your UAN is active & KYC verified, you can submit new EPF partial withdrawal form (Form 31 UAN).
You can enclose your 'Self-declaration form' giving out the details of the purpose. You may also submit a copy of your plot's sale deed.
Hi Sreekanth,
I have completed my 10yrs in my job and would like to withdraw PF for my marriage , I have summit form 31 with the required documents . when i check the status online its shows the CLAIM FORM 31 FOR PF ADVANCE & AS BEEN RECEIVED ON 24.02.2016 IS UNDER PROCESS .
Can you please let me know how long it will take
Dear Kumar..I have seen some of my friends receiving the amount within 30 days or so.