EPF changed certain rules in relation to EPF withdrawal for house, flat or construction of property. These rules will come into effect from 12th April 2017. These changes are called as Provident Funds (Fourth Amendment) Scheme, 2017.
I already wrote a detailed post on EPF partial withdrawal rules. Now the new paragraph is inserted along with those changes as 68BD. This paragraph will now supersede of whatever written in earlier rules.
Let us see these new rules related to EPF withdrawal for house, flat or construction of property. If you are planning to acquire or construct a house or flat or a site, then you can apply for EPF withdrawal for house, flat or construction of property. The two conditions are as below.
# If you are interested in purchasing or constructing the house or flat or a site.
# Otherwise, you must be a member of a co-cooperative society or a society registered for housing purpose under any law for the time being in force and such society has at least 10 members of the EPF.
# If you are the member of EPF for more than 3 years (earlier it was 5 years).
# EPF withdrawal for house, flat or construction of property is allowed only once. Hence, if you already availed this facility, then you are not allowed to withdraw again. Earlier also the rule was same.
# 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.
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.
For calculation of the EPF balance eligibility for EPF withdrawal for house, flat or construction of property, employee’s contribution and interest on that along with employer contribution and interest on that is considered.
EPFO will not transfer the money to you, instead to the 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 as employee authorize the EPFO.
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 finalization of the purchase, completion of the property, or necessary additions or alterations to a house or flat.
If you have failed to utilize the withdrawal for acquiring the property, then you must refund the whole amount to EPFO within 15 days from the date of such non-allotment.
You can use the C0mposite Claim Form for EPF withdrawal for house, flat or construction of property. There are two types of forms. One is Aadhaar complied and another Non-Aadhaar complied. Use the forms as the case may be. The process is explained in below image.
You noticed from above image that for EPF withdrawal for house, flat or construction of property, you can submit the form through your employer or can directly submit the same to regional EPFO.
Download EPF Composite Claim Form (Aadhaar)
Download EPF Composite Claim Form (Non-Aadhaar)
Along with the EPF Composite Claim Form, you have to request EPFO Commissioner to issue the certificate in relation to the last 3 months EPF contribution and also the balance as of today. The form for the same can be downloaded from “Download Application to obtain a certificate of EPF withdrawal for the house, flat or construction of property“.
Do you know that you can use your EPF Balance to repay your monthly home loan EMI? Yes, you can use it to repay the home loan EMI for the accumulated EPF corpus.
You can use EPF balance to repay your home loan EMI either fully or partly as per your wish. For that, you have to instruct the EPFO. EPFO will transfer the money to your bank monthly 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.
Download the form to authorize EPF for repayment of Home Loan EMI.
Hope this much information suffices for you to avail these two new facilities of EPF.
EPF Scheme 2026 explained fully: EPF withdrawal, EPS pension, and EDLI insurance changes with examples,…
Chasing financial freedom? Do health, time, relationships and contentment matter just as much? Sadly, we…
Your "safe" SIPs, SGBs, PPF, or Index Funds are secretly sabotaging your wealth. Peltzman Effect…
Thinking your retirement plan is foolproof? Why LUCK - not asset or fund selection or…
Nifty 50 Index Funds Vs Active Large Cap Funds — Can we really compare them…
Should you pick Nifty 500 Multicap 50:25:25, Nifty 500, or Nifty LargeMidcap 250 Index Fund?…
View Comments
Can i withdraw under para 68B(1)(c) for purchase of site for constructing dwelling house if para 68B(7) alteration of house is already availed?
EPFO Website is allowing to raise claim request for 68B(1)(c) and 68B(7) is blacked out as i have claimed it earlier. Does is there any changes lately???
Dear Madhu,
Sadly you can't.
Basunivesh sir,
There was circular: https://www.epfindia.gov.in/site_docs/PDFs/Circulars/Y2025-2026/Advance_UnderPara_68B-7_Self-Declaration.pdf
Due to this change, is there a chance?
Dear Madhu,
Hard to say. But try your luck.
Can you provide a certified copy of any EPF Scheme 1952 rule barring a Para 68B claim after a Para 68B(7) advance?post April 2025 dilinked both para too.please clarity
Dear Shakeel,
Refer on EPFO website.
Hi Sir , I have applied pf FOR PURCHASE FROM PROMOTOR
Claim Rejected APPLIED FOR PURCHASE FROM PROMOTOR BUT NOT UPLOADED PROMOTOR DETAILS.::RETURNED FOR UPLOADING READABLE CANCELLED CHEQUE LEAF WITH MATCHING MEMBERS NAME AND BANK ACCOUNT.
Do I need to provide a Promoter's cancelled cheque while applying? Pls advise.
Dear Ram,
Yes.
My construction of house rejected saying insufficient member balance ihave 2200 in employee share and 27700 in employer share. I applied for 23000 for construction of House
Dear Srinivas,
Then raise an issue with EPFO Grievance Cell.
Hi Sir I have applied for pf got the PF of one of the company on 20 March 2024 then I have applied for other company on 21 March 2024 filled the form number 31 the claim is rejected due to insufficient service for 68b form number 31 please assist me what should I do now
Dear Basanti,
Hard for me to predict of what went wrong. Better you approach EPFO through Grievance Cell.
I applied for PF withdrawl under this cateogory "Purchase of House / Flat / Construction including acquisition if site from agency"
But my claim got rejected with below reason.
1) UNDER PARA 68B(1)A PAYMENT SHALL NOT BE MADE TO MEMBER BUT TO AGENCY 2) PHOTOCOPY OF BANK PASSBOOK NOT ATTESTED BY THE AUTHORIZED SIGNATORY/BANK MANAGER
How should i proceed, I need the PF withdrawal in my bank account.
Hi Sunil,
I have the same issue. Were you able to resolve this?
If YES please suggest what needs to be done.
Thanks
Shweta
I have claimed PF amount for purchasing property, claim got rejected due to "FURNISH AGENCY DETAILS TO PROCESS CLAIM", but while I submit in online nowhere it asked for any documents to submit. How to correct this and re-apply.
what to submit under agency account details?
Dear Ayyappan,
Raise an issue with EPFO Grievance Cell Online.
Hello sir.
please need your help. My claim is rejected with the below message. what other option should i be selecting to withdraw PF for purchase of flat. Please help on priority.
Claim Rejected CONSTRN OF HOUSE UNDER AGENCY SHALL NOT BE PAYABLE TO MEMBERS ACCOUNT
Dear Nadeem,
It seems you have not provided the builder details.
I want to withdraw my EPF to make payment to DDA for newly constructed Flat (my own funds+ loan+EPF).How much % amount of my EPF i can withdraw? Will EPFO make payment to DDA directly or to me (the member) ? As flat amount is more compared to my EPF, will DDA accept such payment method ?
Dear Sid,
Your all questions are already answered in the above post.
Hi Nivesh,
I applied for construction of house but it get rejected and the rejection reason is: ‘ OK 2) NOT ELIGIBLE-INSUFFICIENT SERVICE’
However My total service tenure is 5 year 6 mnth
Total NCP days is 5
All previous employer transferred to current one
Can you please help me what could be the reason
Dear Mohammad,
In that case, better to raise an issue with EPFO Grievance Cell Online.