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 Also, EPF withdrawals are liable to income tax if withdrawn before five years of service.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
Hello Sir,
I’m a software professional having 6 years experience. I want PF Advance for the purchase of site. In my first company I was there for 3 years & in my present company I’m there for 3 years. But, I withdrew my PF from my first company. My question is whether I’m eligible for taking advance. I suppose since, I’m associated with EPF since 6 years I should be eligible. I got to know that if I had transfered my PF account to the present employer, I would have been eligible. But, Since, I’ve withdrawn the pf money, am I not eligible for the PF advance. Minimum no. of years for taking advance on PF is 5 years for the purchase of site. Should I wait for another 2 years in the presnt company to take the advance or how is it. Please advise
If I'm uneligible for the above mentioned reason, is it easy to get advance for parents illness. I don't understand why they have to be so strict when we are just taking our savings.
Dear Charlie,
I do not think you can withdraw your EPF monies. Legally, if one is employed then the EPF member should not withdraw EPF monies, he/she can only transfer the monies to the new EPF account.
Dear Sir,
First of all thank you for such an excellent article. I have completed 12 years of service and have withdrawn PF amount 2 years back for construction of house. I have another house that is 10 years old and I want to withdraw amount under repair/alternation of house. Can you please advice if this is feasible since I have already withdrawn under construction of the house? If yes what is the documentation required? Thanks again and wish you a happy new year in advance,
Another clarification - If I cannot withdraw under repair/alteration of the house, could it be done under repayment of housing loan?
Dear Sunil,
As the property is > 5 year old, I believe that you can partially withdraw your EPF monies. You may have to submit declaration form and the required amount (advance) details.
Thank you Sreekanth. Appreciate proactively responding to the queries.
Hi Sreekanth ,
I started working from 2006 , worked for four years in an IT firm in Karnataka . Then i Joined a different firm and transferred my PF from old company to new , worked there for 2 years . After that I joined a new company in Pune and transferred the PF to new company . I have never closed my pf but transferred everytime
Now I want to apply for PF loan to buy flat , will I be able to get the loan from PF
Will it consider 5 years of continuous service , as my earlier pf account was with different states
Dear Suno..You are eligible to make partial withdrawal. Suggest you to treat your PF money as the last resort, as this is your retirement savings.
Hello Sir,
My claim for loan for repayment for housing loan was rejected since I had not mentioned the amount required. I went through the instructions at http://www.epfochennai.tn.nic.in/pdf/Instructions%20for%20Form%2031.pdf and they say that you can specify "Maximum Eligible Amount" if you don't know your exact eligibility.
But my claim has been rejected basis I haven't specified the exact amount. My fear is that if I specify some amount and that amount is more than the eligibility, do I stand a chance of another claim rejection? Or shall I canculate 36 times of Basic + DA and reapply? Or shall I mention the amount required and they can calculate?
Thanks in anticipation.
Dear AARORA,
Suggest you to calculate based on your salary and quote that amount. You also take your empolyer's help (HR) in this regard.
Hi Sreekanth,
My current PF account shows years as 4yrs 8months.
Current year, my new Employer is yet to deposit any amount to PF account. Although deductions been regular.
Once they update, will my years of service will be > 5years. Thus, can i be eligible to take a PF loan to buy a plot.
If so, what are the supporting documents to be submitted proving, i'm taking loan for plot purchase itself. And how long does the whole process take. As i need to make a partial payment for the land.
Dear Biju..Why are they not depositing in this FY?
Hi I need to to know how to withdraw partial amount from my EPF Account. I have 10 years experience. I have completed 5years in my current organization. I need it personal expense. I need Rs 40,000 to pay to the Owner where I am going for rent. Please advice if i can withdraw and also the procedure of it.
Dear Krishna..I believe that one cannot withdrawal (take advance) from PF to meet personal expenses. I have clearly mentioned the various purposes for which one can take a loan.
Hi, I wish to build a house in plot which is on my name. I have 12 years of service and i am contributing to PF since 10 years. According to the rules i can partial withdraw up 36 times (Basic+ DA). Suppose in case the present Basic + DA per month goes to 20,000/-. Am i eligible for 36 *20000=7,20,000/-. One more query i have is, suppose in case my PF balance is only 6 lakhs (employer + employee)... then for what amount i am eligible. Please help
Dear Ganesh..Based on your service period, you are eligible for partial withdrawal. Kindly contact your employer about the amount & guidelines.
dear sir ,
Ian working 18years one office after that i transfuse my p.f amount at new office receiver also completed 4 years right now aim eligible for p.f lone his consider old experience or not pales inform
Dear ANANTHA..Yes, your entire service period will be considered.
ok sir thank you. no it doesn’t complete 5 yrs. only for this reason i can able to withdraw?
otherwise without specific reason , shall i withdraw the partial pf for close my other debts is possible?
Dear sumathy..No, he can not make partial withdrawal then.
Dear Sir,
It is one very good news that without employer we can withdraw our PF Money.
Please note that I was working in Batra Brothers Pvt Ltd. from 1988 to 1994 March. I left the company due to problem in my house.
As I need money at this my critical time, may I request you to guide me hot to withdraw the money from PF which I will be very grateful to you. I am from Orissa. I was working in Delhi from 1988 to 1994.
Please advise me.
Thanking you for your co-operation.
With best regards
Kishore Sahu
Dear Kishore,
Your EPF a/c would be considered as 'in-operative account'. Suggest you to go through my article - 'How to trace old EPF A/c details' to submit your request to EPFO helpdesk.