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 Also, EPF withdrawals are liable to income tax if withdrawn before five years of service.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 am having 10 years of service in 5 companies. This is my 5th company where I need to withdraw PF. I worked for 7 years in 3 companies and later got all the PF numbers transferred to my 4th Company, which was having a PF trust. When I left my 4th Company, there was option to withdraw PF amount, so I withdrew. Now in my present company which is 5th company, I have been working for last 1.5 years. But now I need to withdraw money for a flat purchase.
Please let me know, can I apply for PF loan and eligible for that, as ll the money in the PF account as of now is just been deposited in alst 1.5 years only.
Also please guide, can anybody withdraw PF for registration amount for flat purchase, after sale deed agreement?
Please guide.
Dear Avinash,
As you have been contributing to EPf scheme for more than 10 years, I believe that you can make a partial withdrawal for 'registration amount'.
Sir i want withdraw pf but i leave the job only 15 days money problem urgent any solution
Dear Kiran..I did not understand your query..kindly rephrase it .
sir,
My hub working in more of 5 years in one service , i want to know only for the above reasons the pf amount can be withdraw, or there is if doesnt have specific reason i can go for partial withdraw?if i can means what is the procedure for that to whom i want to contact, i want to get the clear details , kindly give the details to proceed.
Sir,
I red the above terms and conditions, before i raised the query, in that i need clarification, other than the above reason, i can go for partial withdraw or not,
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)}
kindly explain me the above paragraph bracket part, one more thing in the above guidelines ,36 times of salary is mentioned that means basic salary or pf amount or which employer contributed amt multiple of 36 times.
Dear Sumathy,
An EPF member can make partial withdrawals only for the above reasons.
Yes, it is not take home salary. Only Basic + DA (if any) is considered for the calculation. Yes, the contributions can be through multiple employers.
If you take loan or advance, there is no need to repay it. Unless otherwise you do not utilize the amount.
36 times of salary, here salary means again it is just basic sal + DA (if any).
sir,
Thankyou . I have completed 2 years of services , i can able to take advance or loan or partial withdraw? in my pf amt unless i want to wait till 5 yrs complete.
one more thing, for previous query for the above reasons which is the less documentation and which is no documents, then what way i want to proceed to get the advances.
Dear sumathy,
Kindly note that you are not eligible to make partial withdrawals.
Dear sumathy,
Kindly note that you are not eligible to make partial withdrawals.
sir,
Noted . I am not eligible for partial withdrawals, my hub has completion of 5 yrs, he will come under eligible category, for him for the above reasons which is the less documentation and which is no documents, then what way i want to proceed to get the advances.
Dear sumathy thiruppathi ..I did not understand your query "less documentation"??
May I know the exact purpose for which you would like to make partial withdrawal?
sir i want to do some alteration or repair work in my house and i need money to settle by debt for that reason,i am asking which is less documentation and no need to submit documents because for house repair works is not possible to submit the documents for that seek i asked? please help for this.
Dear sumathy,
If the purpose is for 'alteration/home improvement', the condition is to have 'no of service years' as 5 years from completion of house.
So, say if your house is completed in 2010, your husband should have been contributing to EPF scheme from 2010 to 2015.
If so, you can take advance up to;
12 months basic salary
or
employee share with interest
or
actual cost for repairs ..whichever is least.
Dear sumathy thiruppathi,
Kindly read my article on 'EPF partial withdrawals - rules & guidelines' for more info.
Hi Sir,
Once we apply for PF advance and submitted by the employer after verification to the PF department how many days it would take to get the advance in our account.
Thanks
Muzammil
Dear Muzammil,
As far as I know that the credit can happen in 3 to 4 weeks. Kindly check with your employer too.
Halo Sreekanth Garu,
I am purchasing a villa in HYD. I want to make use of EPF to pay the advance. I am employed with same org for 9 years now. Form 31 says that the Chq will be paid to the builder directly. Some agents say that money will be paid to my account.
SO can you please advise when I fill the form, should I mention the Builder name & Address for the CHq to be sent in Row 7 for form 31. Can you please advise since I am very confused.
Dear Ajay,
I am not very sure about this. Kindly check with your employer too. Request you to share the info here.
Thank you for writing such a knowledgeable article.
Please help me with answer to below questions.
I have completed 5.5 years of service with 3 different employers. However, I had no PF with first employer. Therefore, total pf contribution period is 3.5 years.
Can I withdraw my EPF to purchase a flat as I have completed more than 5 years of service?
Thank you
Dear Sanjeev,
I believe that you can withdraw but do check this with your employer.
Suggest you to re-think about your decision to withdraw your PF. It is your retirement savings, keep it invested as long as possible.
Hi,
I would be completing 5 yeaars next year in 3 JAN 20116 , Is it possible for me to withdraw my pf money for marriage. if possible what is procedure and document I need to submit for claim. kindly give yours suggestion.
Dear Babu,
Minimum 7 years of service is needed..kindly go through above article..
Hi
Thank you for such a nice article. I regularly follow your articles they are treasure of knowledge.
In regards with above article I have got a query
My query is pertaining to previous-previous employer, if PF not transferred for more than 5 yrs is amount tax free ??
1. I am working with new employer for the past 1 yr(I haven’t transferred my previous-previous employer’s pf amount where I have worked for 3 years and previous emp for 1.5yrs). So in this case if I withdraw my pf amount from previous-previous employer do I have to pay TDS on PF amount redeemed or will I get benefit of holding this PF account for more than 5 years so whole amount is Tax free?
I understand from previous employer PF amount will be taxable since I haven’t completed 5 years of continuous service.
Thank you.. you are doing a great service by educating others… knowledge shared is knowledge gained.
Dear Geetu,
As you are employed now, legally you may have to transfer your old PF monies to your existing pf account.
Kindly read : EPF a/c online transfer process.
Hi. I would want to know what are the documents required to be submitted in case if you purchasing a Flat or Apartment?
Dear Pavan..What is your total no years of service / EPF contribution years??
I would be completing 5 yeaars next year in august , i have purchased an construction linked property whose next instalment is due in nov 2016 , so can i withdraw money from my epf account for paying the underconstructiom property instalment , please note that there is no loan involved , and is there any tds deducted on amount which i would withdraw ?
Dear Himanshu,
You are eligible for partial withdrawal during next year.But it is advisable not to use your EPF monies for goals like these. Consider it for your retirement goal.