EPF rule change: A major change in PF rules now the withdrawal limit for this purpose has been doubled
There has been a big change in EPFO rules. This change is related to partial withdrawal. EPFO has given this information by issuing a circular on 16 April.
EPFO has doubled the withdrawal limit under para 68J of Form 31. Earlier this amount was Rs 50,000, now it has been increased to Rs 1 lakh.
Form 31 of EPFO is the form related to partial withdrawal. It is used to withdraw money prematurely for various purposes. Different functions are placed in different paragraphs. This includes things like marriage, building a house, buying a house, and withdrawing money for treatment.
Para 68J of Form 31 is given to withdraw a partial amount for the treatment of illness. Under this, earlier Rs 50,000 could be withdrawn but now this amount will increase to Rs 1 lakh. However, one thing to remember here is that no employee can withdraw 6 months of basic and DA or employee's share including interest (whichever is less). This means that only if you have more than Rs 1 lakh in your PF, you can claim it.
This limit has been increased under section 68J. In this, the customer can prematurely withdraw Rs 1 lakh from his PF account for the treatment of himself or any of his family members. This was announced by issuing a circular on 16 April.
If any person wants to take advantage of this, he can fill out Form 31 and submit it. But Certificate C has to be submitted along with this form, which requires the signatures of both the employee and the doctor.
As we mentioned, Form 31 deals with partial withdrawals from PF for various purposes. There are many different sections under which money is withdrawn for different purposes. For example, under para 68B, money can be withdrawn to repay loans in special cases.
Under 68H, money is withdrawn for advance in special cases. You already know about 68J. Similarly, 68BB, 68K, 68N, and 68NN are used for everything from children's education and marriage to withdrawing money before retirement.