To Finance A New Home In 2023, Use Your EPF

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To Finance A New Home In 2023, Use Your EPF

EmployeeProvidentFundOrganization,orEPFO,isalegallyrecognizedgovernment agencyrunbytheMinistryofLaborandEmployment.Themanagementand oversightoftheProvidentFund(PF)inIndiaistheresponsibilityofEPFO(EPFO Login).TheEmployeeProvidentFund(EPF)&EPFOMemberLoginrequirea UniversalAccountNumber(UAN),whichisaspecialidentificationcodeusedfor both.It'sinterestingtonotethatPFfundscanbeusedforbothhouseloan repaymentandhomepurchase.AnEPFOMembermayusethePFamountfor dwellingbuildingandlandpurchase,subjecttocertainrestrictions.

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TheUANcanbeusedtologintotheEPFO(EPFOUANLogin).AUANlogincanalso beusedbyanEPFOmembertoviewtheUANPassbookonline(EPFOMember login).SinceUANisrequiredtoaccessEPFOMemberdata,anEPFOMembercan obtaintheUANpassbookbylogginginasanEPFOMember(Epfologin).

Current update

InFebruary2023,theEmployees'ProvidentFundOrganization(EPFO)openedthe doorforitsmemberstoincreasetheirpensioncontributionsdependingontheir realsalariesratherthanthepreviouslymandatedcap.Existingbeneficiariesand thosewhoretiredonSeptember1,2014,willbeaffectedbythis.Itindicatesthatan employerandemployeemayenrolljointlyandasktheretirementfundbodyto withhold8.33%ofthehighermonthlybasicwageforpensionpurposes,raisingthe workers'pensionsasaresult.

Let'slookattheinformationonUANEPFOandEPFOLogin(Epfologin).

Describe UAN

TheEmployeeProvidentFundschemecoverssalariedemployees,whoaregivena UAN,oruniversalaccountnumber,whichisaspecialnumber.TheEPFOpassbook, PFcontributioninformation,andEPFaccountbalancecheckareallaccessible throughtheUAN.Becausetoitsuniqueness,UANcanbetransferredifaperson changesjob.LinkingtheUANandtheemployee'sAADHARnumberisnecessaryfor theemployertobeabletomakecontributionstothePFaccount.

Withdrawing PF to purchase a new home

TheEmployeeProvidentFundisaretirementfundtowhichtheEmployerand salariedEPFOMemberseachcontributeupto12percentoftheEPFOMember's basicincome.AlthoughtheEPFmoney'smainpurposeistogivetheEPFOMembera sustainingsumwhentheyretire,thereisawaytowithdrawthismoneyforbuilding orbuyingahome.TheEPFOMembermayevenutilisethismoneytopaybackhome loans.TheEPFOMembercannot,however,taketheentirebalancefromthePF accounttopayforhousing.Thefacilityissubjecttoseveralrestrictions.The followingrequirementsapply:

TheamountoftheaccumulatedPFwithdrawal,ifusedtopurchaseaready-tomove-inhome,islimitedto36months'worthoftheemployee'sBasicSalaryplus theDearnessAllowance(DA),orthepriceofthechosenproperty,whicheveris lesser.

ThemaximumamountofPFthatcanbewithdrawnbyanEPFOmemberinorderto buyaplotorlandparcelisequalto24monthsofthemember'sbasicsalarywithDA ortheplot'sprice,whicheverislower.Forinstance,thecostoftheplotisRs3lakh andtheaccruedPFandDAover36monthsisRs2lakh.TheEPFOMemberwillbe limitedtowithdrawingnomorethanRs2lakhinthisscenario.

EPFO Member Withdraws PF for Home Loan Repayment

AsalariedEPFOmemberwithaPFaccountisalsoqualifiedtowithdrawPFfunds forhomeloanrepaymentinadditiontothecriteriaspecifiedabove.However,the EPFOMembermusthavebeenasalariedworkerandPFcontributorforatleastten yearsinordertobeeligibleforthisbenefit.

Additionally,ifyouchoosetopaybackthemortgagewithaPFwithdrawal,the withdrawalisonlyallowedtoequal36months'worthoftheEPFOmember'sbasic salaryplusDearnessAllowance(DA).TheEPFOMembermustobtainahouseloan fromabank,non-bankingfinancecompany,orotherrecognizedlenderinorderto obtainthismoney.ThisfacilitywillnotbeavailabletotheEPFOMemberiftheloan isprivatelyobtainedfromanunregisteredorganisation.

Withdrawal of PF for construction of a house

TheEPFmoneycanbeusedbytheEPFOMembertobuildadwellinginadditionto buyingaparceloflandorahouse.TheEPFOMembermust,however,beapartofa recognizedhousingsocietyoraregisteredsocietywithatleast10membersinorder tousethisfunction.Incertainsituations,thePFwithdrawalisequaltothelesserof 90percentofthePFamountandthecostofbuildingtheproperty.Withinsix monthsoftheEPFOMember'sPFmoneywithdrawaldate,workonthehousemust begin.Thebuildingprojectmustbefinishedwithinayearofthelastinstalment withdrawal.

Removal of PF for Home Renovation

AregisteredEPFOmembermayusethePFwithdrawaloption,amongotherthings, topayforhomeimprovementsortherepaymentofanexistingmortgage.The EmployeeProvidentFundOrganization,orEPFO,hasaninterestingpolicythat allowsregisteredmemberstowithdrawPFforhomeimprovements.

IfanEPFOmember,hisorherspouse,orthetwoofthemjointlyownahome,they maybeeligibleforaPFwithdrawaltopayfortherenovations,alterations,or additions.ItshouldbeemphasizedthatthePFwithdrawalinthissituationcanonly beusedafterthehousehasbeenbuiltforfiveyears.ForthebenefitoftheEPFO members,EPFOhasmadeitplainthatremodelingthesamehomeforwhichaPF withdrawalhasbeenmadeisnotrequired.Theotherhomecanalsoberenovated byanEPFOmember.Also,eveniftheEPFOMemberhasn'talreadywithdrawnPF fundsforhomeconstructionoracquisition,theymaybeusedfortherenovation.

What are the steps for PF withdrawal? (Online PF Withdrawal)

ThePFwithdrawalcanbemadeforavarietyofreasons,includingbuildingahouse, payingformedicalexpenses,andmore.Bothonline&offlinewithdrawaloptionsare availableforPF.

Offline Process for Withdrawing PF (How to Withdraw PF)

TherearetwoformsyoucanusetoaccessyourPFbalanceoffline:

 FormofCompositeClaim(Aadhar)

 FormofCompositeClaim(NonAadhar)

WithaCompositeClaimForm,withdrawyourPF(Aadhar)

IfyourUANnumberisactivatedandyouhaveseededtheUANportalwithyour Aadharnumber&primarybankinformation.Withoutreceivinganyattestation fromyouremployer,completethisformanddeliverittotheappropriateEPFO office.

WithaCompositeClaimForm,withdrawyourPF(NonAadhar)

YoucanusetheCompositeFormiftheUANportalisnotconnectedtoyourAadhar number&bankinformation(NonAadhar).Thisformshouldbefilledoutand deliveredtotheappropriatejurisdictionalEPFOoffice.

Itshouldbementionedthatunderthepreviousadministration,manydocuments andcertificateswereneededinordertowithdrawPFbalance.However,inorderto streamlinethePFwithdrawalprocedure,thegovernmenteliminatedtheneedfor thesubmissionofseveralpapersandinsteaddevelopedasystemforEPFemployees tocertifythemselves.

Online PF Withdrawal Process

UsershavetheoptionofapplyingonlineforPFwithdrawalinadditiontotheoffline procedure.Thefollowingrequirementsmustbesatisfiedbytheuserbefore submittinganonlineapplicationforPFwithdrawal.

 ThemobilenumberassociatedwiththeUniversalAccountNumber(UAN) mustalsobeactivated.

 TheUANneedstobeconnectedtotheKYC,suchasAadhar,PAN,etc.

How do I apply for a PF withdrawal online?

ThisishowtoapplyforaPFwithdrawalonlineinsteps.

Step 1: VisittheUANLoginportal.

Step 2: EntertheCaptchaCodeafterlogginginwithyourUANandpassword.

Step 3: SelecttheManagetabanddeterminewhetherornotyourKYC(KnowYour Customer)hasbeenvalidated.

Step 4: AftertheKYChasbeenverified,clickthe"OnlineServices"pageandchoose "Claim"(Form-31,19&10C).

Step 5: EnteryourKYCinformation,youraccountnumber,andclick"Verify"onthe followingscreen.

Step 6: ChooseYestoAccepttheAgreementandContinue.

Step 7: Toproceed,select"ProceedforOnlineClaim".

Step 8: Undertheheading"IwanttoApplyfor,"ontheclaimform,choosethesort ofclaimyouneed,suchasafullsettlementorapartialwithdrawal.

Step 9: Choose"PFAdvanceForm31"fromthemenu.

Step 10: ClicktheCertificateandfinishsubmittingtheform.Thescanned documentsmayberequestedforupload.Iftheemployerhasapprovedthe application,thefundswillbecreditedtoyouraccountwithin15to20days.

Should an EPFO member take a PF withdrawal for housing?

ItmustbeemphasizedthattheamountofaPFwithdrawalthatcanbeusedto renovate,upgrade,oraddontoanexistinghomeislimitedto12monthsofbasicpay andDA.Thisisdependentontherenovationcosts.ItmustbeemphasizedthatEPFo membersareonlypermittedtowithdrawPFfundsinalifetimeforhousing-related purposes.AlthoughthereisaPFwithdrawaltoolavailableforhousing-related purposes,itiswisetoavoidwithdrawingfundssetasideforretirementbenefits.

AsalariedEPFOmemberwhocontributestoPFisrequiredtohavetheirUAN number.WhenanEPFOmemberchangesjobsorwantstowithdrawmoneyfrom theirPFaccount,forexample,theycanusetheirspecialUANnumber.Wouldyou liketoknowwhereanEPFOmembercanlocatetheirUANnumber?Continue reading.

How to apply for a home loan using my EPF funds?

EPFOmembersarepermittedtousethemoneythathasaccumulatedintheirPF accounttopayofftheirhomeloan.InordertorequestthewithdrawalofEPFfunds, anEPFOMembermusttaketheactionsoutlinedabove.

 AnEPFOmembermaysubmitawithdrawalrequesttotheEPFCommissioner viatheirhousingsociety.Theapplicationmustfollowtheguidelinesoutlined inAnnexure1intheappropriateformat.

 TheEPFCommissionerproducesacertificatethatdetailsthemonthly contributionmadebytheEPFOmemberinordertosubmitawithdrawal request.

 TheEPFOpassbookmayalsobeprintedandusedasproofofcontributionby EPFOmembers.

 ItshouldbementionedthattheEPFOdonatesmoneytotheorganisation directly(privateorPublic).

 EPFOmemberscanchoosetowithdrawtheirPFinalumppaymentor throughEMIs.

What paperwork is needed for PF withdrawal?

ThefollowingdocumentsaremandatorytohaveonhandwhenanEPFOmember wantstowithdrawtheirPF.

 Primarily,aUniversalAccountNumber,orUAN,isneeded.TheUANcanbe foundonthepassbookofanEPFOmemberoritcanberequestedfromthe employer.

 BankaccountinformationfortheEPFOmember,similartoapassbook.Both theEPFOmemberaccountandthebankaccountmusthavethesameEPFO membername.

 MoneycannotbemovedtoathirdpartywhiletheEPFOmemberisstillalive, thusthebankaccountmustbeintheirname.

 Identityproof&EPFOmemberaccountmusthavethesamepersonal informationabouttheEPFOmember.

The EPF conclusion

Inconclusion,theEPFOLogin(EPFOMemberLogin)enablesuserstouseUANto checktheirPFbalance.TheUANloginenablesausertoaccessthedashboardonline andmakeadvantageoffeatureslikecheckingtheirEPFOpassbook,updatingtheir contactinformation,andmonitoringtheprogressoftheirclaims.TheEPFOweb serviceshavebeenoptimizedthankstotheUANlogin(EPFOMemberLogin).

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