Buying or building a house is a big dream for every working professional today. ​​Keeping this need in mind, EPFO ​​provides its members with the facility to withdraw PF for housing-related expenses. After the new EPFO ​​3.0 system, this process has become easier and faster. However, it's important to understand that while PF can be withdrawn for a house, the entire accumulated amount is not available.

Basic Rules for PF Withdrawal for Housing
According to EPFO ​​rules, PF withdrawal is allowed for buying, building, repaying a home loan, or renovating a house. These facilities are subject to specific rules and limitations. The process has become online with EPFO ​​3.0, but the withdrawal limits and conditions remain the same – meaning the process is easier, but the rules haven't been relaxed.

Who can withdraw PF and under what conditions?
To withdraw PF, you must be an active member of EPF, your UAN must be active, and your KYC must be fully updated. The house for which the PF is being withdrawn must be in your name, your spouse's name, or jointly in both names. If there is no proof of ownership of the house, the PF claim for housing will not be accepted.

After how many years of service can PF be withdrawn?
For buying or building a new house, a minimum of 3 to 5 years of service is generally considered necessary. This period is longer for repaying a home loan, and PF withdrawal is usually allowed only after completing 10 years of service. For house repair or renovation, the house must be at least 5 years old.

How much can be received for buying or building a house?
In the case of buying or building a house, a maximum of 90 percent of the total PF balance can be withdrawn. Another limit also applies, which is 36 months of basic salary and dearness allowance. The lower of these two amounts will be disbursed as PF.

Rules for Home Loan Repayment and Renovation
If PF is being used to repay a home loan, up to 90 percent of the total balance can be withdrawn. Meanwhile, for renovation, only up to 12 months of basic salary and DA are allowed. These two facilities can only be availed of a limited number of times in a lifetime.

How quickly will the PF be received, and what is the process?
After EPFO ​​3.0, housing-related PF claims have become completely online. You need to log in with your UAN, fill out Form 31, and upload the necessary documents. If the KYC and information are correct, the claim is usually settled within 3 working days.

Taxes and necessary precautions
If the entire PF is withdrawn before completing 5 years of service, TDS may be applicable. 100% withdrawal of PF is never allowed for housing purposes. Therefore, use your PF judiciously to ensure your retirement security.

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