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 Also, EPF withdrawals are liable to income tax if withdrawn before five years of service.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
Hi srikanth,
I have total 7 years of exp. My First 3.5 years pf is maintained by trust. Then I moved to next company I have transferred my of to new company. Here pf is maintained by epfo. Whether am I eligible for of advance for home purchase.
Thanks in advance
Hi Sir,
1) My brother, joined Philips and PF Membership start date : 27-Jul-2009 and Date of Leaving with Philips : 25-Nov-2011. PF is maintained by Philips Trust. After leaving philips, he has not worked till 1st May, 2015.
2) He joined Mercedes on 2nd May 2015 and currently working there, since then. The PF amount from philips got transferred to Mercedes company recently. PF is maintained by Mercedes Trust.
3) We would like to avail loan for purchasing the flat from PF account,and were told that minimum 5 years of service is required. Since, there is no continuous years of service for ~3.5 years, are we eligible to avail a loan from PF balance. How the number of the service is considered?
Dear TVS,
First EPF a/c - 2 years and then 1 year on 2nd EPF account. So, the total no of contiburion years is less than 5 years.
Hi Sreekanth,
My case is also similar to this.
I worked with my first organization for 4 years and withdrawn the amount when changed company. Now i have been working in my second organization for 3 years.
I would like to avail loan for purchasing flat from PF account,How will be the service period calculated in my case? Am i eligible to take loan for purchasing the plot?
Dear NarasimhaRao ..As you have withdrawn your old EPF a/c money, your service period would not have been accumulated. So, i am afraid you may not be eligible for partial withdrawal for the said purpose.
Thank you very much for reply quickly Sreekanth.
Hi Sreekanth,
My father is working in one private organisation i.e. Rural development Trust(R.D.T). He is planning to withdraw total PF money for my sister marriage .But as per my understanding he cannot withdraw total PF money. My father is 56 years old now , there is one policy (Para 68NN: Withdrawal within one year before retirement). Is there any chances to use this 68 NN policy and Please let me know if any other policy to get total or 90% money from corpus without taking any voluntary retirement.
Regards,
Manoj
Hi Sreekanth.
In continuation above post,please let me know the required formalities and form numbers to start the process and please provide no.of days to get money.
Regards,
Manoj
Dear ManojKumar,
The retirement age is considered as 55 years. So, I believe that he can withdraw full EPF balance.
If he is active UAN number and kyc details are verified, he can submit new EPF withdrawal forms directly to EPFO.
PAN card copy, cancelled cheque leaf, form 15G (if required) along with withdrawal forms need to be submitted.
Thanks a lot Sree
Hi Sree,
Is it possible to withdraw employer contribution as well. Could you please conform,actually employer telling its not possible .
Regards,
Manoj
Dear Manoj ..Yes, it is possible.
Hi Sreekanth, I purchased the flat which is jointly owned by me & my mother in 2011. I have home loan on the flat. Now, I want to partially withdraw PF for repair/renovation. Am I eligible (as I am one of member owning flat and other member is not spouse)?
Dear PSNandanwar..I believe that you are eligible to apply for partial withdrawal.
Hi Sir,
I purchased a new flat in Bangalore. And I applied for PF Advance withdrawal, somehow it got rejected and I would like to apply again. The Flat Registration is over now, Is it Possible to apply for Advance withdrawal after the Registration.
How much % on my Contribution I will get Advance. I have been working from 8.9 Years.
Is it Possible to apply PF Advance withdrawl from online ?
Thanks,
Ramesh J
Dear Ramesh,
Online withdrawal (partial/full) facility is not yet been made available. If you have taken home loan then you can make partial withdrawal to make part-payment of outstanding home loan principal.
Dear Sir,
My company had own epf trust. In this month it joined Epfo and all the amount was transferred to Epfo with old seniority. 10 years ago,I got partial withdrawal for house construction. Can I avail partial withdrawal for land purchase in EPFO
With Thanks,
Daniel Raja
Dear Daniel..The purpose may be considered as the same one, you may not be able to make partial withdrawal. Kindly check with your employer too.
Thank for the reply.
Hi,
I am planning for partial withdrawal of my PF amount for purpose of repaying my Home loan and have submitted Form 31 to my employer
Could you please let me know how much time it will take to get my amount once forms are submitted to PF office?
thanks
santosh
Dear santosh ..As per my observations, it can be within 30 days.
Hi Sreekanth,
I have initiated through my Employer, will i get any Reference Number or Tracking number to track the process ?
hii
I am planning to purchase a flat in Delhi, i working with my employer since 12 aug 2011, i will complete 5 years of service on 12 aug 2016, so can i apply rightnow for withdraw of my epf amount, what documents need to be enclosed with form no-31, i want to withdraw before registry of flat, so kindly suggest your view
thanks
AMIT RAWAT
Dear AMIT..You can submit 'self-declaration' form & a copy of Agreement of Sale. But kindly note that the minimum num of service years is 5 years.
Dear Sreekanth Reddy,
Could you please answer for my following questions.
1. I have worked in my previous organization for 3 years and after that i didnot transfer that amount to newer one.(It has been 5 years now)
I want to withdraw that amount, can i withdraw now? and what are the docs required for this process?
2. I am planning to buy a flat and want to withdraw EPF amount(i have been with my current organization for the last 5 years).Can you please help me with the procedure and docs that are required.How much i can withdraw?
Regards,
Shaik
Dear Shaik,
You may transfer your old PF money to new one and then can apply for a partial withdrawal.
Read:
Inoperative EPF account helpdesk.
How to consolidate old EPF accounts?
Dear Sir,
I have worked on an organisation for 6+ year, I wasnt to withdraw PF for build a house, But the land is in my fathers name, I am the only child. What document i need to produce for this pf withdrawal purpose?
Dear Debasis..I believe that the site should be owned by either the EPF member (self) or spouse or jointly to make partial withdrawal for construction of house on the vacant plot.
Will a power of attorney from my father will suffice the purpose?
Dear Debasis..I believe that he can execute GIFT DEED in your name.