According to the regulations of the EPF plan, you are permitted to withdraw funds from your Employee’s Provident Fund (EPF) account for a number of reasons. You are permitted to take withdrawals from your EPF account beginning at age 55 in order to fund your retirement. know about withdraw from EPF corpus for repayment of home loan
You can withdraw funds from your EPF account for a variety of uses prior to retirement. These include covering these costs, financing monetary emergencies, buying or building a home, financing a child’s wedding and school, and so forth. EPF members have the option to request withdrawals of up to 90% of their accumulated PF funds to help with housing expenditures.
EPF members are qualified to get an advance for the following uses: home building, home purchase and construction, home renovation, and home loan repayment. The maximum withdrawal varies depending on the withdrawal. Depending on the withdrawal, a different maximum withdrawal may apply.
No documentation is needed for housing loans, the acquisition of land, houses, or apartments, building, additions to existing homes, or the repayment of housing loans. All that is need is the New Declaration Form/Utilization Certificate, etc.
How to withdraw for repayment of home loan?
- Step 1: Access the EPFO e-SEVA website.
- Step 2: To login, enter your UAN, password, and captcha code.
- Step 3: Go to the “Online Services” section.
- Step 4: From the options, select Claim Form 31.
- Step 5: Key in your bank details and press “verify”
Check the terms and conditions once you read Proceed for online claim, select the claim settlement.
- Select the purpose of the advance
- Enter details such as amount required and address
- Upload the documents if required.
- You will submit your application.
Reason for withdrawal from EPF corpus for repayment of home loan
- Purchasing a home, apartment, or building a home while acquiring a site
- Purchasing a building lot for a residence or a home or apartment
- Purchasing a home or apartment after becoming an owner
- Building a home on property owned by a member, a spouse, or both a member and a couple
- For an addition, modification, or upgrade to a member’s, a spouse’s, or a joint-owned home
For the aforementioned purchases, the maximum amount is 24 months’ basic salary and DA; for the purchase of a house, apartment, or construction, the maximum amount is 36 months’ basic salary and DA; or the total of the employee and employer share plus interest; or the total cost. whatever is the least.
The maximum amount that may be spent on an addition, alteration, improvement, or repair to a member’s, a spouse’s, or a joint-owned home is equal to 12 months’ worth of basic earnings, DA, and employee share, plus interest or cost, whichever is less.
Checklist for online EPF account withdrawals
To be qualified for online claim submission, there are some extra eligibility requirements that must be met.
These conditions are as follows:
- A) The Universal Account Number (UAN) must be activated;
- B) The Aadhaar number must be linked and verified with the UAN;
- C) The bank account must have the correct IFSC;
- D) The EPF account must comply with KYC;
- E) The mobile number linked to the Aadhaar must be active; and
- F) In the event of retirement, the EPFO records must be updated with the correct date of birth.
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