EPFO 3.0 New Rules: Now Withdraw PF Online for Buying or Renovating Your Home—Check Eligibility & Limits

EPFO 3.0 New Rules: Every working person dreams of having their own home, and the new EPFO 3.0 system is proving to be a boon for making this dream come true. If you’re considering buying a new home, acquiring a piece of land, or reducing the burden of your old home loan, you can now utilize a significant portion of the substantial funds deposited in your PF account.

With the new update, not only has the application process become completely digital and transparent, but claim settlements are also being completed in record time, eliminating the need for members to wait months for funds.

PF Withdrawal for Home Under EPFO 3.0

The Employees’ Provident Fund Organization has provided significant relief to its members by allowing them to use PF funds for housing needs. The new 3.0 portal makes the system more convenient than ever. Members can now apply online from the comfort of their homes for purchasing a new home, constructing a flat, repaying an old home loan, or renovating an existing home.

While the department has simplified and made the application process paperless, there have been no significant relaxations in the maximum withdrawal limits and stringent eligibility criteria to ensure members use their retirement funds wisely and safely.

Essential Requirements

Withdrawing a large sum from your PF account is a responsible decision, requiring you to meet certain basic EPFO criteria. The most important requirement is that your UAN must be fully active, and your KYC process, including Aadhaar, PAN, and bank details, must be 100% updated.

The most important requirement is that the property for which you are withdrawing funds must be in your name, your spouse’s name, or your joint name, as the department immediately rejects claims for property owned by a third party or without proven ownership.

How much can you withdraw from your account

The amount you can withdraw from your PF account for housing is based on a specific calculation, which takes into account your years of service. You can withdraw up to 90 percent of your total PF balance to purchase or construct a new home, provided the amount does not exceed the sum of your 36 months’ basic salary and dearness allowance.

For land purchases, this limit is limited to 24 months’ salary, while for home repairs or renovations, you can only withdraw funds equivalent to 12 months’ basic salary. It’s important to note that you must have completed at least 10 years of service to repay a home loan.

Claim Settlement in EPFO 3.0

The new EPFO 3.0 system is known for its time-saving and transparency, eliminating the need for members to visit regional offices. Simply log in to the official EPFO portal using your credentials and fill out Form 31 under the Online Services tab.

If the information and documents you provide match the department’s records, your claim is settled within just three working days, and the money is transferred directly to your registered bank account, making it even easier to receive financial assistance in an emergency.

TDS and Future Security

When withdrawing from PF, it’s crucial to keep some important financial considerations in mind so you don’t regret it later. If you withdraw PF funds before completing 5 years of continuous service and exceed the limit, TDS may be deducted on your withdrawal, reducing your disbursement.

Also, always remember that you can avail of benefits like home repairs or renovations only a limited number of times in your lifetime, and the EPFO never allows 100% withdrawals, as this fund is reserved for social security in your old age.