PF withdrawal for home purchase: eligibility, rules and limits
EPF members can withdraw savings for home purchase: either for buying a residential plot, a house/flat, or for construction. under the new EPF Scheme, 2026, the rules have become significantly more flexible.
minimum service: Most housing withdrawals now require just 12 months of employees provident fund (EPF) membership (reduced from 5 years). the earlier 5-year rule still applies for certain cases, but the new scheme has simplified access.
how much can be withdrawn:
- for purchasing a plot or land: up to 24 times monthly basic wage + dearness allowance.
- for purchasing or constructing a house/flat: up to 36 times monthly basic wage + DA.
- under the new scheme: up to 100% of the eligible member balance (after maintaining a 25% minimum balance).
property ownership: The property must be in the member's name, spouse's name, or jointly owned.
new EPF scheme 2026 major changes for housing withdrawals
the EPF Scheme, 2026, effective from 29 June 2026, introduced significant changes to withdrawal rules.
consolidated categories
earlier, there were around 13 separate withdrawal categories. these have been consolidated into three broad heads:
- essential needs (medical emergencies, education, marriage)
- housing needs (purchase, construction, renovation, home loan repayment)
- special circumstances (unemployment, disability, critical illness)
minimum balance requirement
a key change is the mandatory 25% minimum balance that must remain in the account after any partial withdrawal. this applies to both employee and employer contributions.
example: if a member has an eligible balance of ₹1 lakh, ₹25,000 must remain in the account. the remaining ₹75,000 may be withdrawn for housing purposes, subject to applicable rules.
minimum service reduced
under the earlier framework, housing withdrawals required 5 or even 7 years of membership. the new scheme allows most partial withdrawals after just 12 months of EPF membership.
withdrawal limit increased
members can now withdraw up to 100% of their eligible member balance for housing-related purposes, subject to prescribed conditions. the eligible member balance is the amount remaining after setting aside the 25% minimum balance.
frequency of withdrawals
housing-related withdrawals can now be made up to five times during the entire EPF membership.
eligibility for PF withdrawal for home purchase
under the EPF scheme, 2026
| requirement | details |
|---|---|
| minimum membership | 12 months (generally) |
| purpose | purchase of plot, house/flat, construction, renovation, or home loan repayment |
| property ownership | must be in member's name, spouse's name, or jointly owned |
| maximum withdrawals | up to 5 times during membership |
| minimum balance | 25% of total balance must remain in account |
under the earlier EPF scheme (1952)
for reference, the earlier rules required:
| purpose | minimum Service | maximum Withdrawal |
|---|---|---|
| purchase of plot/land | 5 years | up to 24 months' wages |
| purchase of house/flat | 5 years | up to 36 months' wages |
| construction of house | 5 years | up to 36 months' wages |
| home loan repayment | 10 years | up to 36 months' wages |
the new rules are significantly more flexible and accessible.
how much can be withdrawn
under the new EPF scheme, 2026
for housing purposes, members can withdraw up to 100% of the eligible member balance (after maintaining the 25% minimum balance).
eligible member balance = Total balance: 25% mandatory minimum balance
example: if total balance is ₹1,00,000:
- mandatory minimum balance: ₹25,000
- eligible member balance: ₹75,000
- maximum withdrawal for housing: ₹75,000
purpose-specific limits (for reference)
under the earlier rules, specific limits applied:
- plot/land purchase: Up to 24 months' basic wages + DA
- house/flat purchase: Up to 36 months' basic wages + DA
- house construction: Up to 36 months' basic wages + DA
the new scheme simplifies this by allowing up to 100% of the eligible balance.
eligible housing purposes
under the new scheme, housing withdrawals cover:
- purchase of a house or flat
- purchase of a residential plot or land for construction
- construction of a house on an owned plot
- repayment of a home loan (payment is made directly to the lender)
- renovation, alteration or improvement of an existing house
- repairs to the residential property
the property must be for residential purposes: agricultural land typically does not qualify.
property ownership rules
the property must be registered in the name of:
- the member, or
- the member's spouse, or
- jointly owned by both
withdrawals are not permitted for property purchased with siblings, parents, or friends.
tax implications
the tax treatment of PF withdrawal for home purchase depends on the period of service:
| service Period | tax Treatment |
|---|---|
| 5 years or more | fully tax-free |
| less than 5 years, below ₹50,000 | no TDS |
| less than 5 years, above ₹50,000 | TDS applicable as per rules |
if permanent account number (PAN) is not linked with the EPF account, tax may be deducted at a higher rate. the 5-year rule applies to continuous service, not total years of membership.
how to apply for PF withdrawal online
the process is entirely online through the universal account number (UAN) Member Portal and no longer requires employer approval for most claims.
step 1: ensure KYC is complete
before applying, the following must be verified on the UAN portal:
- UAN is activated
- Aadhaar is linked and verified
- PAN details are updated
- bank account details are linked with UAN
- mobile number is registered
step 2: log in to the UAN portal
the EPFO Member e-Seva site can be accessed using UAN and password.
step 3: navigate to the claim section
under "Online Services", select "Claim (Form-31, 19, 10C)".
step 4: select the purpose
for home purchase, the option corresponding to housing needs or a similar housing-related category should be selected.
step 5: enter the amount
the amount to withdraw should be entered. the system displays the maximum eligible amount based on the balance and the purpose.
step 6: upload documents
supporting documents property agreement, sale deed, or other housing-related documents should be uploaded if required.
step 7: submit the claim
the claim can be submitted using the one-time password (OTP) sent to the Aadhaar-linked mobile number.
once approved, the amount is credited directly to the member's bank account. under employees provident fund organisation (EPFO) 3.0, auto-settlement of claims has been increased to ₹5 lakh, and claims are processed faster.
which form to use
different withdrawal requests require different EPFO forms:
- Form 31: Partial PF withdrawal or advance: this is the form used for home purchase
- Form 19: Full and final settlement of EPF balance
- Form 10C: Pension withdrawal under the Employees' Pension Scheme
frequently asked questions
1. what is the minimum EPF membership required for home purchase withdrawal?
under the new EPF Scheme, 2026, most housing withdrawals require 12 months of EPF membership. the earlier rule of 5 years for housing still applies under the old framework, but the new scheme has significantly reduced the waiting period.
2. how much PF can be withdrawn for buying a plot?
under the new scheme, members can withdraw up to 100% of the eligible member balance (after maintaining the 25% minimum balance). under the earlier rules, the limit was 24 times monthly basic wages + DA for plot purchase.
3. is PF withdrawal for home purchase taxable?
if the member has completed 5 years of continuous service, the withdrawal is fully tax-free. if service is less than 5 years, tax deducted at source (TDS) may apply: 10% with PAN, 20% without PAN, and no TDS for withdrawals below ₹50,000.
4. what is the 25% minimum balance rule?
under the new EPF Scheme, 2026, 25% of the total EPF balance must remain in the account after any partial withdrawal. the withdrawal is calculated from the remaining 75%, defined as the "eligible member balance". this applies to both employee and employer contributions.
5. how many times can EPF be withdrawn for housing purposes?
under the new scheme, housing-related withdrawals can be made up to five times during the entire EPF membership.
