EPFO 3.0 rules
Buying or building a house is the big dream of every working person today. Keeping this need in mind, EPFO provides its members the facility to withdraw PF for household expenses. After the new EPFO 3.0 system, this process has become easier and faster than before. However, it is important to understand that PF can be withdrawn for house, but the entire deposited amount is not available.
Basic rules for withdrawing PF for home
According to EPFO rules, withdrawal of PF is allowed for buying, constructing a house, repaying home loan or renovation. These facilities come under special rules and limitations. The process has become online in EPFO 3.0, but the limits and conditions for withdrawal of funds remain the same as before, that is, the process has become easier and the rules have not become loose.
Who can withdraw PF and on what conditions?
To withdraw PF, it is necessary that you are an active member of EPF, your UAN should be active and KYC should be completely updated. The house for which PF is being withdrawn should be in the name of you, your spouse or the joint name of both. If there is no ownership proof related to the house, then PF claim for housing will not be accepted.
After how many years of service can PF be withdrawn?
To buy a house or build a new house, at least 3 to 5 years of service is generally considered necessary. This period is longer for repaying home loan and generally PF withdrawal is allowed only after completion of 10 years of service. At the same time, for repair or renovation of the house, at least 5 years should have passed since the house was built.
How much amount can one get for buying or building a house?
In case of buying or building a house, a maximum of 90 percent of the total PF balance can be withdrawn. Apart from this, another limit also applies, which is 36 months of basic salary and dearness allowance. The amount which is less among these two will be received as PF.
Rules for repayment of home loan and renovation
If PF is being used to repay the home loan, then up to 90 percent of the total balance can be withdrawn. At the same time, only 12 months of basic salary and DA is allowed for renovation. Both these facilities can be availed only limited times in life.
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How soon will you get PF and what is the process?
After EPFO 3.0, PF claim related to housing has become completely online. After logging in with UAN, Form 31 has to be filled and necessary documents have to be uploaded. If KYC and information is correct, the claim is usually settled in 3 working days.
Taxes and necessary precautions
If entire PF is withdrawn before completion of 5 years of service, TDS may be levied. Withdrawal of 100 percent PF for house is never allowed. Therefore, use PF wisely, so that retirement security is maintained.