India's EPFO launches digital EPFO 3.0 platform, revises PF withdrawal limits

The Employees' Provident Fund Organisation (EPFO) is set to roll out a new digital platform, EPFO 3.0, aimed at making provident‑fund services faster, simpler and more accessible. Under the upgrade, members will be able to withdraw funds via UPI and ATM cards, and claim processing time is expected to shrink from up to 20 days to a matter of hours. Auto‑claim settlements have been increased to ₹5 lakh, with digital verification using Aadhaar OTP.

The platform introduces a partial‑withdrawal ceiling of 75 % of the total balance, while the remaining 25 % is locked to preserve a retirement corpus. Full 100 % withdrawals remain possible in specific situations such as retirement (age 58+), permanent unemployment, permanent overseas residence, or total disability. Tax rules for PF withdrawals have not changed; withdrawals before five years of continuous service may attract TDS (typically 10 % if PAN is available) and are taxable according to the member’s income slab, though exemptions apply for serious illness, home purchase, education, marriage, or job loss.

Additionally, interest earned on PF contributions exceeding ₹2.5 million per year is now taxable, reflecting a move to limit tax benefits for higher‑income earners.