I am taking a home loan from HDFC. I wish to do some prepayment from my EPF corpus. I believe we can withdraw up to 90 per cent for home loan repayment. I have been in service for over 12 years. Please advise if I can withdraw over 90 per cent of my corpus from my EPF as I do not want any EMI burden. I already have a PPF account which I contribute to every year.

Ans: About EPF Continuous Service -Since you’ve been contributing to EPF for 20 years across different companies, your overall service with the EPF remains uninterrupted.
About Tax-Free EPF Withdrawal- According to EPF rules, if you have completed 5 years of continuous service (which includes service across multiple employers without withdrawing the balance between jobs), your EPF withdrawal is tax-free. So, despite changing jobs, your service duration with the EPF is counted collectively.
Since you've been contributing for 20 years without breaking the EPF continuity, your withdrawal will not be taxed. You can withdraw the EPF corpus of Rs 25 lakh without worrying about it being taxed at your income tax slab rate.
However, if at any point your EPF service was discontinued and restarted (without a transfer of funds between accounts), the period might reset, leading to taxation concerns. If you are unsure, you could consult with your EPF office or a tax advisor to confirm your exact status. Think about linking all the old accounts in to the current account so that your continuity of service can be verified by PF authorities. Now EPF office have started unified account and you linking your old accounts to the latest account will give you combined value and tax benefits. within my Prosperity Lifestyle Hub community we share such topics to get our financial challenges resolved.
Best regards,
Nitin Narkhede
Founder & MD, Prosperity Lifestyle Hub https://Nitinnarkhede.com
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Ans: Hello;

As per the newly added Para 68-BD in the EPF Scheme, EPF members can apply for a withdrawal of up to 90% of the accumulated corpus for either making the down payment of the house or for the payment of EMIs or for the construction of a new house, subject to following conditions:

1. Person should be member of EPFO for minimum 3 years.
2. Withdrawal under this head can be availed only once.
3. The corpus of the member should be minimum of 20 K while availing this benefit/facility.

Yes you may continue to contribute to your EPF even after availing this facility.

Best wishes;

Ans: Hello;

It is advisable to convert the bank account to a single holder account as early as possible.

Best wishes;

Ans: Hello;

Answers to your queries are as given below:

1. EPF partial withdrawal will have No impact on EPS.
The estimated monthly EPS pension seems okay.

2. Your assumption about net EPF corpus available to you after 58 is correct, in principal.

Best wishes;