The EPFO has issued a new circular, No. WSU/RationalisationofAdvances/E-48776/2025-26/18, dated April 17, 2025, bringing a significant change to the rules for availing PF advances under Para 68 B (7) for home improvements.
Previous rule:
Previously, if someone wanted to take a PF advance for home improvements (such as additions, alterations, or repairs), their application had to be tied to a previous PF withdrawal made under the same Para 68 B—typically for the initial purchase or construction of the property. This meant that if they hadn’t previously withdrawn PF funds for buying or building the house, they might not have been eligible for an advance for improvements, even if the house had been completed over five years ago.
New rule (effective April 17, 2025):
The new circular simplifies this process. Now, individuals can apply for an advance under Para 68 B (7) for home improvements based on a self-declaration alone, provided that:
- At least 60 months (5 years) have passed since the completion of the house.
- The current request does not need to be linked to any prior PF advance made under Para 68B.
This change makes it easier for members who have owned their homes for at least five years to access PF funds for improvements, without needing to have made an earlier withdrawal for purchasing or constructing the property. The EPFO’s systems have been updated accordingly, ensuring that such advance requests are processed efficiently, provided all other eligibility criteria are met.