EPF rule changes…..
The Employees’ Provident Fund Organization (EPFO) has ordered to increase the existing eligibility limit of 68J claims for withdrawal. from 50,000 Now 1 lakh.
This announcement was made through a circular issued by EPFO on April 16.
The pension fund body has also made changes in the application software on April 10, 2024. The EPFO circular states that it has already received the green signal from the Central Provident Fund Commissioner (CPFC).
EPF partial withdrawal through Form 31 is allowed for many purposes. These purposes range from marriage to repaying loans and from buying a flat to constructing a house.
Under para 68J – in respect of which the limit has just been raised – advances can be claimed from the Employees’ Provident Fund (EPF) account for the treatment of illness of the subscriber or a family member.
subject to the limit of One lakh, customers are authorized to claim withdrawal of 6 months basic salary and DA (or employee’s share with interest) whichever is less.
Along with Form 31, customers must also submit Certificate C signed by an employee as well as a doctor.
What is Form 31?
EPF Form 31 is submitted to file a claim for partial withdrawal of funds from the Employees Provident Fund account.
Through Form 31, one can apply for clearance for purchase of house/flat, construction of house including acquisition of site under para 68B; For repayment of loan in special cases under para 68BB; advance grant in special cases under para 68H, advance grant for sickness under para 68J; Advance grant for marriage or post matriculation education of children under para 68K and to physically handicapped members under para 68N and withdrawal within one year before retirement under para 68NN.
What is Para 68J under which the limit has been increased?
As mentioned above, para 68J is for withdrawal from EPF account for the treatment of illness of a subscriber or a family member.
In other news, EPFO recently enabled automatic transfer of EPF account balance from one job to another. One can read this article to know more about the details.
