How to Withdraw PF for House Construction?

Did you know? Employees can partially withdraw PF to meet certain expenses. These withdrawals are subject to conditions and the EPF account holder has to meet the eligibility criteria. Today, I am going to tell you about PF withdrawal for construction of house. Let us understand how to withdraw PF for house construction and conditions for PF withdrawal for house construction. PF Withdrawal for Construction of House - Conditions There are two cases of PF Withdrawal for construction of house; constructing a new house and renovating or reconstructing a house. Here are the conditions attached to these cases: In case PF withdrawal for house construction (new) The conditions to withdraw PF for house construction are as follows:

• The property or land must be registered in the name of the EPF holder
• The employee must have completed minimum 5 years of service
• The withdrawal can be done only once in a lifetime
• The withdrawal limit stands at 24 months’ basic salary + DA in case of constructing a new house.

In case PF Withdrawal is for renovation or reconstruction The conditions to withdraw PF for renovation or reconstruction are as follows:

• The house should be in EPF holder’s name (can be a joint ownership)
• The employee must have completed 5 years of service
• The EPF withdrawal stands at 12 months’ basic salary + DA

How to withdraw PF for house construction? The PF withdrawal for construction of house can be done offline and online. Here is the process to withdraw PF for house construction. Offline Process Download the Composite Claim Form (Aadhaar), fill it and submit it to the EPFO office of your jurisdiction. Online Process The online withdrawal process is as follows:

• Go to the UAN portal
• Login using UAN number and password
• Now enter the captcha code and submit
• Go to the ‘manage’ tab and select KYC option. If your KYC details are updated then go to ‘online services’ tab
• In this section select ‘Claim Form 31, 19 & 10C)
• The details will appear on your screen, enter the bank account details and hit Verify
• Sign the declaration
• Click on ‘Proceed for Online Claim’
• Select ‘PF Advance (Form 31)’, select the certificate and submit your form.
• Your employer shall approve the request and after verification the amount will be transferred to your account.

This is all you need to know about pf withdrawal for construction of house.

Hi Nimish, Thanks for the steps to avail PF partial withdrawal for home construction. I have a couple of questions. 1) When we submit the withdrawal request online, will everything happens online itself or do we still need to visit the PF office for some steps of the process?  2)What are the documents required to submit (such as building plan/khata/project estimates etc.  Anything?) ? Could you please mention?  3)Bribing the officials is required anywhere in the process of withdrawal?  (Asking because,  it was a 'must' when only offline mode was there for withdrawal and we had to visit and talk F2F with the officials. It was an untold mandate!). Thanks for the help in advance.

The majority of people are interested in learning what is the construction of house EPF withdrawal limit. If a salaried individual wishes to use PF Withdrawal to acquire a plot for the construction of a house, the amount of the withdrawal would be equal to either the cost of the plot or 24 months of Basic Salary plus the employee's Dearness Allowance (DA), whichever is lesser.

Conditions for Advance PF Withdrawal for House Construction

The maximum PF withdrawal limit is 90% of the EPF balance, regardless of whether the withdrawal is for the acquisition of land, ready-to-move property, or maintenance and renovation of an already-owned property.

Only those who have completed a minimum of five years of service are eligible to withdraw this amount from the PF.

• If the PF withdrawal is done before the five-year period from the date of account opening, it is taxed under the legislation. This withdrawal is subject to taxation under the "Income from Other Sources' heading. The amount that is withdrawn will be subject to a 10 percent TDS.

• It should be noted that your spouse is the only one who can benefit from the PF withdrawal for a joint purchase.

• The employee, their spouse, or the two of them together must be the owners of the newly constructed house.

• It is required to make the PF Withdrawal in installments. Furthermore, it is vital to guarantee that the house's construction commences within six months following the withdrawal of the initial installment. 

• In addition, the construction must be finished within a year of the last installments being drawn.

You can follow the steps to withdraw the PF amount mentioned by Nimish above. I hope now you have an idea of construction of house EPF Advance

.

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How to withdraw pension contribution in EPF?

People with steady incomes who are now setting up money for future home construction have another option for financing their strategy. They are permitted to withdraw funds from their provident fund (PF) account, but only under certain conditions. Let us learn how to withdraw PF amount for house construction.

How to withdraw PF money for house construction online?

• PF money can be withdrawn by visiting the

  UAN portal

• Use your UAN and password to log in. Click the 'Sign In' button after entering the captcha.

Calculate your EMI on a home loan via the NoBroker EMI calculator

• To see whether your KYC information, including your Aadhaar, PAN, and bank details, has been confirmed, click the "Manage" button and choose "KYC."

• Go to the 'Online Services' tab and choose the 'Claim (Form-31, 19 10C & 10D)' option from the drop-down menu after the KYC information has been validated.

• The member information, KYC information, and other service information will be displayed on the next screen. Click "Verify" after entering the number for your bank account.

• To sign the certificate of the undertaking, select 'Yes', and then carry on.

• Click on the "Proceed for Online Claim".

• Under the tab "I Want To Apply For," on the claim form, choose whether you want a complete EPF settlement, a partial withdrawal (loan or advance), or a pension withdrawal. 

• Then, to withdraw your money, click on "PF Advance (Form 31)". Additionally, include the reason for the advance, the required sum, and the employee's address.

• To submit your application, click the certificate. You will also be asked to submit scanned documents. 

Employees must take the following actions for home construction funded by PF:

• Although the EPF amount can be withdrawn up to 90%, the employee must have served a minimum of five years in the company.

• If PF is withdrawn prior to the end of the five-year period, the sum will be subject to a 10 percent Tax Deducted at Source (TDS) tax.

• A joint purchase with a spouse is allowed with this PF withdrawal. This means that the owner can be an EPFO member, their spouse, or both. The withdrawal can be done in installments, and the residence must be constructed within six months of the first installment and twelve months of the last installment.

I hope this helps you to understand how to withdraw PF amount for house construction.

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Read More:

What are the documents required for PF withdrawal for house construction? How to check APF number online? How to Check PF Balance without UAN? 

 

Hi Buddy,

My father is a member of a cooperative society. He wanted to build his own house. However, he was a little skeptical about the construction of house PF withdrawal by a member of a cooperative society. 

I really appreciate Nimish’s answer. I completely agree with the steps that he mentioned about the PF withdrawal for house construction online and offline as well.

However, I was searching for the method or information that is relevant to the members of the cooperative society. It was during this time I started browsing the internet and fortunately, I found that 

• any member of a cooperative society or registered housing society (with at least 10 members) is also eligible to withdraw EPF funds for the acquisition or construction of a residential house under Section 68BC of the EPF Scheme

• the withdrawal is also permitted for the purpose of purchasing a plot from the Central Government, a State Government, or a registered Housing Agency for the purpose of constructing a house

• the amount of money that might be taken out would be limited to the lesser of 90 percent of the EPF balance or the actual cost

• to be eligible for such a withdrawal, the employee must have completed five years of membership with the fund and the share of contributions with interest in the amount standing to the credit in the Fund of the member/or along with the spouse who is also a member must not be less than Rs 20,000

This additional information about PF withdrawal for home construction for members of cooperative societies was of great help for us:)

You can take a look at the amount of home loan that you are eligible to avail using this,

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Read More:

What Are The Documents Required For PF Withdrawal For House Construction? How Much PF Can Be Withdrawn For House Construction?