To Finance A New Home In 2023, Use Your EPF
Employee Provident Fund Organization, or EPFO, is a legally recognized government agency run by the Ministry of Labor and Employment. The management and oversight of the Provident Fund (PF) in India is the responsibility of EPFO (EPFO Login). The Employee Provident Fund (EPF) & EPFO Member Login require a Universal Account Number (UAN), which is a special identification code used for both. It’s interesting to note that PF funds can be used for both house loan repayment and home purchase. An EPFO Member may use the PF amount for dwelling building and land purchase, subject to certain restrictions.
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The UAN can be used to log into the EPFO (EPFO UAN Login). A UAN login can also be used by an EPFO member to view the UAN Passbook online (EPFO Member login). Since UAN is required to access EPFO Member data, an EPFO Member can obtain the UAN passbook by logging in as an EPFO Member (Epfo login).
Current update
In February 2023, the Employees’ Provident Fund Organization (EPFO) opened the door for its members to increase their pension contributions depending on their real salaries rather than the previously mandated cap. Existing beneficiaries and those who retired on September 1, 2014, will be affected by this. It indicates that an employer and employee may enroll jointly and ask the retirement fund body to withhold 8.33% of the higher monthly basic wage for pension purposes, raising the workers’ pensions as a result.
Let’s look at the information on UAN EPFO and EPFO Login (Epfo login).
Describe UAN
The Employee Provident Fund scheme covers salaried employees, who are given a UAN, or universal account number, which is a special number. The EPFO passbook, PF contribution information, and EPF account balance check are all accessible through the UAN. Because to its uniqueness, UAN can be transferred if a person changes job. Linking the UAN and the employee’s AADHAR number is necessary for the employer to be able to make contributions to the PF account.
Withdrawing PF to purchase a new home
The Employee Provident Fund is a retirement fund to which the Employer and salaried EPFO Members each contribute up to 12 percent of the EPFO Member’s basic income. Although the EPF money’s main purpose is to give the EPFO Member a sustaining sum when they retire, there is a way to withdraw this money for building or buying a home. The EPFO Member may even utilise this money to pay back home loans. The EPFO Member cannot, however, take the entire balance from the PF account to pay for housing. The facility is subject to several restrictions. The following requirements apply:
The amount of the accumulated PF withdrawal, if used to purchase a ready-to-move-in home, is limited to 36 months’ worth of the employee’s Basic Salary plus the Dearness Allowance (DA), or the price of the chosen property, whichever is lesser.
The maximum amount of PF that can be withdrawn by an EPFO member in order to buy a plot or land parcel is equal to 24 months of the member’s basic salary with DA or the plot’s price, whichever is lower. For instance, the cost of the plot is Rs 3 lakh and the accrued PF and DA over 36 months is Rs 2 lakh. The EPFO Member will be limited to withdrawing no more than Rs 2 lakh in this scenario.
EPFO Member Withdraws PF for Home Loan Repayment
A salaried EPFO member with a PF account is also qualified to withdraw PF funds for home loan repayment in addition to the criteria specified above. However, the EPFO Member must have been a salaried worker and PF contributor for at least ten years in order to be eligible for this benefit.
Additionally, if you choose to pay back the mortgage with a PF withdrawal, the withdrawal is only allowed to equal 36 months’ worth of the EPFO member’s basic salary plus Dearness Allowance (DA). The EPFO Member must obtain a house loan from a bank, non-banking finance company, or other recognized lender in order to obtain this money. This facility will not be available to the EPFO Member if the loan is privately obtained from an unregistered organisation.
Withdrawal of PF for construction of a house
The EPF money can be use by the EPFO Member to build a dwelling in addition to buying a parcel of land or a house. The EPFO Member must, however, be a part of a recognized housing society or a registered society with at least 10 members in order to use this function. In certain situations, the PF withdrawal is equal to the lesser of 90 percent of the PF amount and the cost of building the property. Within six months of the EPFO Member’s PF money withdrawal date, work on the house must begin. The building project must be finishes within a year of the last instalment withdrawal.
Removal of PF for Home Renovation
A registered EPFO member may use the PF withdrawal option, among other things, to pay for home improvements or the repayment of an existing mortgage. The Employee Provident Fund Organization, or EPFO, has an interesting policy that allows registered members to withdraw PF for home improvements. If an EPFO member, his or her spouse, or the two of them jointly own a home, they may be eligible for a PF withdrawal to pay for the renovations, alterations, or additions.
It should be emphasize that the PF withdrawal in this situation can only be use after the house has been built for five years. For the benefit of the EPFO members, EPFO has made it plain that remodeling the same home for which a PF withdrawal has been made is not require. The other home can also be renovate by an EPFO member. Also, even if the EPFO Member hasn’t already withdrawn PF funds for home construction or acquisition, they may be use for the renovation.
What are the steps for PF withdrawal? (Online PF Withdrawal)
The PF withdrawal can be made for a variety of reasons, including building a house, paying for medical expenses, and more. Both online & offline withdrawal options are available for PF.
Offline Process for Withdrawing PF (How to Withdraw PF)
There are two forms you can use to access your PF balance offline:
- Form of Composite Claim (Aadhar)
- Form of Composite Claim (Non Aadhar)
With a Composite Claim Form, withdraw your PF (Aadhar)
If your UAN number is activated and you have seeded the UAN portal with your Aadhar number & primary bank information. Without receiving any attestation from your employer, complete this form and deliver it to the appropriate EPFO office.
With a Composite Claim Form, withdraw your PF (Non Aadhar)
You can use the Composite Form if the UAN portal is not connected to your Aadhar number & bank information (Non Aadhar). This form should be filled out and delivered to the appropriate jurisdictional EPFO office.
It should be mentioned that under the previous administration. Many documents and certificates were needed in order to withdraw PF balance. However, in order to streamline the PF withdrawal procedure. The government eliminated the need for the submission of several papers and instead developed a system for EPF employees to certify themselves.
Online PF Withdrawal Process
Users have the option of applying online for PF withdrawal in addition to the offline procedure. The following requirements must be satisfied by the user before submitting an online application for PF withdrawal.
- The mobile number associate with the Universal Account Number (UAN) must also be activate.
- The UAN needs to be connect to the KYC, such as Aadhar, PAN, etc.
How do I apply for a PF withdrawal online?
This is how to apply for a PF withdrawal online in steps.
1st: Visit the UAN Login portal.
2nd: Enter the Captcha Code after logging in with your UAN and password.
3rd: Select the Manage tab and determine whether or not your KYC (Know Your Customer) has been validate.
4th: After the KYC has been verified, click the “Online Services” page and choose “Claim” (Form-31, 19 & 10C).
5th: Enter your KYC information, your account number, and click “Verify” on the following screen.
6th: Choose Yes to Accept the Agreement and Continue.
7th: To proceed, select “Proceed for Online Claim”.
8th: Under the heading “I want to Apply for,” on the claim form. Choose the sort of claim you need, such as a full settlement or a partial withdrawal.
9th: Choose “PF Advance Form 31” from the menu.
10th: Click the Certificate and finish submitting the form. The scanned documents may be request for upload. If the employer has approve the application, the funds will be credit to your account within 15 to 20 days.
Should an EPFO member take a PF withdrawal for housing?
It must be emphasize that the amount of a PF withdrawal that can be use to renovate, upgrade, or add onto an existing home is limit to 12 months of basic pay and DA. This is dependent on the renovation costs. It must be emphasize that EPFo members are only permit to withdraw PF funds in a lifetime for housing-related purposes. Although there is a PF withdrawal tool available for housing-related purposes. It is wise to avoid withdrawing funds set aside for retirement benefits.
A salaried EPFO member who contributes to PF is require to have their UAN number. When an EPFO member changes jobs or wants to withdraw money from their PF account. For example, they can use their special UAN number. Would you like to know where an EPFO member can locate their UAN number? Continue reading.
How to apply for a home loan using my EPF funds?
EPFO members are permit to use the money that has accumulate in their PF account to pay off their home loan. In order to request the withdrawal of EPF funds, an EPFO Member must take the actions outlined above.
- An EPFO member may submit a withdrawal request to the EPF Commissioner via their housing society. The application must follow the guidelines outlined in Annexure 1 in the appropriate format.
- The EPF Commissioner produces a certificate that details the monthly contribution made by the EPFO member in order to submit a withdrawal request.
- The EPFO passbook may also be print and use as proof of contribution by EPFO members.
- It should be mention that the EPFO donates money to the organisation directly (private or Public).
- EPFO members can choose to withdraw their PF in a lump payment or through EMIs.
What paperwork is needed for PF withdrawal?
The following documents are mandatory to have on hand when an EPFO member wants to withdraw their PF.
- Primarily, a Universal Account Number, or UAN, is need. The UAN can be found on the passbook of an EPFO member or it can be request from the employer.
- Bank account information for the EPFO member, similar to a passbook. Both the EPFO member account and the bank account must have the same EPFO member name.
- Money cannot be move to a third party while the EPFO member is still alive. Thus the bank account must be in their name.
- Identity proof & EPFO member account must have the same personal information about the EPFO member.
The EPF conclusion
In conclusion, the EPFO Login (EPFO Member Login) enables users to use UAN to check their PF balance. The UAN login enables a user to access the dashboard online and make advantage of features like checking their EPFO passbook. Updating their contact information, and monitoring the progress of their claims. The EPFO web services have been optimized thanks to the UAN login (EPFO Member Login).
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