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Business News/ Money / Personal Finance/  EPF rule change: Now you can claim partial withdrawal up to 1 lakh for medical treatment
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EPF rule change: Now you can claim partial withdrawal up to ₹1 lakh for medical treatment

The Employees’ Pension Fund Organisation (EPFO) has deployed the change in the application software on April 10 this year. The rule change has received the nod of Central Provident Fund Commissioner, the circular issued by pension fund body informs.

The announcement was made via a circular issued by the EPFO on April 16. Premium
The announcement was made via a circular issued by the EPFO on April 16.

The Employees’ Provident Fund Organisation (EPFO) has ordered to enhance the existing eligibility limit of 68J claims for withdrawal from 50,000 to 1 lakh now.

The announcement was made via a circular issued by the EPFO on April 16.

The pension fund body has also made the changes in the application software on April 10, 2024. This has already received a green signal from the Central Provident Fund Commissioner (CPFC), the EPFO circular informs.

The EPF partial withdrawal is allowed through form 31 for a number of purposes. These purposes range from marriage to repayment of loans, and purchase of flat to construction of house, among others.

Under para 68J — with respect to which the threshold has just been raised — advances from the Employees’ provident fund (EPF) account can be claimed for the treatment of illness of subscriber or the family member.

Subject to the limit of one lakh, subscribers are authorised to claim for withdrawal of 6 months’ basic wages and DA (or employee share with interest) whichever is lower.

Along with form 31, subscribers also need to submit certificate C signed by an employee as well as by a doctor.

What is form 31?

The EPF form 31 is submitted to file a claim for partial withdrawal of funds from Employees Provident Fund Account.

Through form 31, one can apply for withdrawal 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; grant of advances in special cases under para 68H, advance for illness under para 68J; for marriages or post matriculation education of children under para 68K and grant of advance to members who are physically challenged under para 68N and withdrawal within one year before retirement under para 68NN.

What is para 68J under which the limit has been raised?

As mentioned above, para 68J is meant for withdrawal from the EPF account for the treatment of illness of a subscriber or for the 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.   

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Published: 17 Apr 2024, 03:34 PM IST
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