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 Also, EPF withdrawals are liable to income tax if withdrawn before five years of service.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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Hi,
Could you please confirm if it's feasible that first I take complete loan from the Bank and then apply for advance PF. And, use that amount to make prepayment of some portion of loan to bank. Also, I have completed more than 7 years in the same organization and using same PAN number, do I need to pay any taxes on this advance amount.
regards,
Jaspreet Singh
If a Pf withdrawal for Purchase of home, can another withdrawal be done for home loan repayment?
Dear Deepak..I believe that one can apply as the fresh partial withdrawal can be considered as it is for a different purpose..
Dear Jaspreet..Yes you can apply for repayment of home loan.
Read : New EPF withdrawal forms.
Taxes are not applicable.
Hi Sreekanth,
Thank you for the information. However now situation has been changed a bit. The property I'm getting in my budget is situated in the colony which is yet to be authorized by the municipal authorities and Form 31 asks about the authority which approved that property. As it is not the authorized one, Home loan option is not available and want to reduce my exposure toward personal loan by withdrawing money from my PF account. Could you please confirm, if there is any such provision to make PF withdrawal to buy home in such situation. I have the token money agreement as a proof (Notary agreement).
Dear Jaspreet..I am not very sure on this..But 'Agreement of Sale' can be accepted as the proof
Hi Sreekanth,
Thank you so much for answering my queries, this forum is really helpful.
I have one more query : recently saw an article on google while searching out early withdrawal of PF, which states that now there is cap on the maximum withdrawal. Is that true? because as per the eligibility available under my conditions, epfo website says that 36 times of basic wages can be withdrawn which is less than my total corpus. Could you please confirm if there is any limit on withdrawal introduced by the government and whether that is applicable on my case.
Thanks in advance.
Dear Jaspreet,
Probably it's about the withdrawal at the time of retirement. Kindly read: EPF new rules 2016.
If it is about partial withdrawals, could you please share that link here???
Hi Sreekanth,
Your article about PF is very helpful. I have few questions though.
1. If my current basic salary is 35K, then can I take 12L as PF advance for purchase of house?
2. And how would they deduce the PF advance amount afterwards?
3. Do I need to pay any interest after taking up PF advance?
Dear Raja,
1 - Suggest you to kindly check your EPF balance & calculate the eligible amount as per the rule mentioned in the article.
2 - It is paid to you from the total available balance.
3 - No. The amount of advance/withdrawal is not required to be refunded under normal circumstances.
Hi, I have to pay to my wife as alimony for divorce and amount is huge. Will it come under category of marriage?
Can I
a) withdraw PF partially for this purpose.
b) withdraw PF partially and return after period of 1-2 years
c) what is my take liabilities for PF withdrawl
d) I had changed companies but had not transferred for some, it is advisable to transfer in one fund and then withdraw or withdraw seperately?
regds, Raghav
Dear Raghvendra..What do you mean by 'will it come under category of marriage'?
a)/b - No.
d) suggest you to transfer your old EPF ac monies to your new one.
Hi Sreekanth,
My husband has completed 5 yrs of service so I know he won't be taxed on EPF withdrawal. But a friend said only one withdrawal of your EPF will be tax exempted which means the withdrawal at the time of retirement will be taxed if we do a partial withdrawal now. Is this true?
Thanks and regards
Anita
Dear Anita..Your friend's point is incorrect.
Hi Srikanth,
I have completed 5 years of service in an Organization which has its won PF trust. After 5 yrs of service, I moved to another company. Now, how can I withdraw my PF amount from old organization? I have enquired them couple of times, but heard 'No'. They clearly mentioned that I have no other option than to transfer my PF.
Can you suggest if there is any way to withdraw my PF from old organization?
Dear Rads..If you are currently employed, you have to transfer your old EPF ac monies to your new one.
Read: EPF A/c online transfer procedure.
Hi,
I am having 7+ years of experience & EPF is there from 7 years plus, although i changed the company but i transfer my EPF always. Now i want to buy flat. I want to use EPF amount for initial 20% payment. As we know that we need to pay 20% of total flat cost & we can go for 80% home loan. My question is what document EPF needs when i want to buy flat & want to pay 20% of total cost ? This is under construction property so definitely i won't have registration document. In that case what document i can submit to EPF from the construction company ? How they give the amount ? will it come to my account or they will give draft/cheque to construction/builder ?
Thanks in advance !!!
Dear sameer,
You may submit 'sale agreement' copy and a self-declaration mentioning the quantum of money (refer to the article for eligibility rules).
Hi Sreekanth,
Sameer's point is valid. I also have the same question. In fact I have raised the following question in one of you other thread. But i see that question is more valid in this thread. The question was like this:
------------------------------
The Form 31 Declaration asks for Flat's Registration Number and other details. I want to withdraw the Advance from my PF account of 10+ years so that I can avail some fund for the payment of the 20% margin amount or what is called down payment. But since till I make some of the down payment, I cannot have the Registration. And without Registration details Form 31 Declaration can't be submitted or EPFO will not pass your withdrawal request. So how can I or any customer like me complete the Form 31 Declaration to withdraw the Advance from PF in this situation. Please clarify this.
------------------------------
Hope you understand the situation. Rules are there no doubt. But please clarify this specific situation.
Thanks,
Vinod
Dear Vinod,
Probably that is the reason why EPFO has now simplified the withdrawal/partial withdrawal forms.
If you see the new partial withdrawal form (Form 31-UAN), you only have to provide information 'about the purpose for which advance is required'. Kindly refer to my other article: New EPF withdrawal Forms.
Hi..Can advance PF be withdrawn on the same property twice by husband and wife if the house is under joint name?
I have the same question.. let me ask by different words.
Husband and Wife bought home jointly, now can both husband and wife withdraw money from their respective PF account for the home jointly owned ??
Dear Anubhooti..Let me know the purposes? (reasons for previous & proposed withdrawals??)
Dear Sreekanth,
I want to withdraw my EPF as I have quit my job in May 2015 (after 4.10 years) and currently studying outside.
Since I have no income right now, I wanted to withdraw the EPF to have lesser tax.
My query is that the amount is 5 lakh, can I withdraw it in two equal parts in 2016 and 2017 to claim the TDS 10% back ?
Thanks a lot in advance.
Dear, I want partial withdrawal for purchasing of house... i have completed 5 yrs of service in the present organization. could you pls share the complete procedure... is there any involvement of my organization ? how much amount i can get, if suppose currently total PF amount is 6 Lakh...
kindly guide.
Dear surender,
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.
How long will it take? Is there any process to expedite for home advance?
Dear Sana..You may not be eligible to make partial withdrawals.
Dear sir,
thanks for valuable information,
i have my query that my PF BALANCE is updated upto march 2015 and i applied withdrawl on jan 16, Will I get the total amount which is availble in PF ACCOUNT upto JAN 16. i have completed 8 years of working .
Dear YASH..Yes you will get total amount (including interest amount).
Hello sir,
I had taken a plot on my wife's name in January 2015 registery already done for which I took a loan from my credit card in UAE,now I want to borrow a loan from my PF .can I get a loan on that registery?
Dear Ankur..Kindly check the eligibility details as provided in the article.
You may not be able to withdraw EPF monies to repay credit card loan.