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 Also, EPF withdrawals are liable to income tax if withdrawn before five years of service.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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My Parent property at my native place at Siwan District , Bihar. i want to construct a house at my native place.I can withdraw an amount of 1.20 lacs from my epf account, not returnable.
Hi Sir,
I need to partially withdraw from my PF account since i am in short of money for my marriage expenses which is on April 25 2016, also i am leaving this job because am relocating to Bombay i am not continuing my job after marriage, I have no other source of income and my father is retired i cannot give burden to them as well. I had worked for 3.5 years other organisation prior to this and i have withdrawned PF money. In this company i have been working from 3.2years. Please suggest me with better idea. I have heard that there is new rule passed for withdrawals.. can i withdraw online from the next day of my relieve from the company?? or should i wait for 45 days after i left the job. If am not continuing my job after marriage and am flying abroad how will i withdraw my PF money before i leave india.. Please do suggest me with better idea. thank u in advance
Dear savita,
EPF online withdrawal facility is not yet made available. We can expect this option may be after 3 months from now.
If your UAN is active and seeded with KYC details which are verified by your employer, you can submit new EPF withdrawal forms directly to EPFO.
Kindly read:
New EPF withdrawal forms..
Hi Sreekanth,
I'm looking forward to withdraw EPF account, however, the only problem is that I worked for 53 months and as I understand there will be tax deduction, if the EPF account is withdraw before 5 years. Can you suggest anything which helps to avoid tax deduction?
Note- I'm unemployed from last 3 months and haven't decided to work anywhere, considering to run a business in future.
Dear Ashwin,
EPF withdrawals before 5 years are taxable. So, there is no way you can avoid it.
However, you may submit Form 15G to avoid TDS and if your expected income in a given Financial Year is less than the Basic Exemption limit then there won't be taxes applicable on your income.
Read:
How to fill New Form 15G.
I am leaving in home which is in the name of my father and my aunty's husband and my father expired in the yead of 2002 and this property is still in the name of my father and my aunty's husband but now I want to purchase or want to covert this property in my own name by registree by giving some amount to my aunty's husband because he is 50%(the amount is huge) owner of tthis property.So please let me know that in theis senario can I get EPF loan?
Dear Amit..Yes you can make partial withdrawal to buy out the remaining 50% in the property. Note that minimum years of service is 5 years.
Sir If i need an advance for down payment to buy property and do not have the papers yet as I have not yet made the down payment, what is the proof needed by PF dept for partial withdrawal of PF in this case?
Dear Divya..You can submit self declaration form & Sale agreement copy.
Can I avail partial advance from EPF for thread ceremony of my son ?
Dear Malaya Kumar,
No it is not allowed. Kindly do not withdraw your Pf savings for meeting these kind of expenses. Consider EPF funds for your retirement corpus only.
I want loan/advance from my EPF a/c for Construction of House so what is the required document for this loan/advance ?
Dear Avijit,
You can submit;
Self declaration form.
Any document like sale agreement etc.,
EPF partial withdrawal form (New Form 31 UAN).
Hi
I have applied for a home for loan for a property worth 21L and the registration comes to 1.74L...the building is under construction and is expected to be delivered by mid 2017.
Please advise if i can take a loan for making a 20% advance for the home loan .if so how long will it take to get the amount from the PF office.
i have 12 years of service and have approx 2.56L till 2014 in my PF account (this is employee and employer contribution put together)
Dear Raghavendra..You can apply for partial withdrawl for this purpose. If everything is fine and if all the details/docs in place, I believe you will get the amount in 1 month.
sir,
Will I be eligible for a withdrawal of money from my PF or a second house. I had withdrawn 1.5 Lakhs in the year 2002 for a one BHK Flat and I have disposed this house now and have bought a 3BHK House for which I need some money.
Can I withdraw money from PF for this.
Dear krishnan..Kindly note that it is allowed only 'one time' (if the purpose is same).
Dear sir,
I am going to purchase a plot with EPF advance.but the plot is situated in agricultural land and owner of the plot was not converted the plot to NON agricultural land i.e residential area for construction of house . if i purchase these plot the owner and me can executes only purchase agreement in stamp paper with NOTARY counter signed. some body is telling that there is NO registration of the plot in registers office.
can u please tell me whether the Purchase agreement is sufficient to purchase a plot from PF amount or registration of Plot is compulsory ?
Dear RAVI..If the plot is being sold as 'residential plot' without a proper'conversion' being done, suggest you to not to buy such property at the first place.