What are the documents required for PF withdrawal for house construction?

Now that salaried people have an option to withdraw PF to construct a house or renovate one, there are many queries that are popping up. People are curious to know if they are eligible to withdraw money from their PF account, what are the documents required for PF withdrawal for house construction and much more. In this answer we will address these two questions and help you know each detail about it. PF Withdrawal for Construction of House: Documents Required When you are taking out a section of your PF account savings, you have to produce certain documents. The banks and EPFO needs to confirm where are the funds being used. To ascertain PF withdrawal for construction of house, documents required to be submitted are:

• Your UAN number.
• Your bank account details with which EPF account is linked
• Aadhaar card and PAN card details if your KYC is not done
• The certificate from Commissioner specifying balance in PF account
• Monthly contribution records for the last 3 months
• Print out of e passbook from EPFO website
• A composite claim form (if needed)
• An undertaking by PF contributors for EMI payment

Eligibility to withdraw PF savings if you are planning to construct or renovate your house

• The employee must have completed minimum 5 years of service
• The withdrawal scheme is applicable only once in a lifetime
• The withdrawal limit stands at 24 months’ basic salary + DA in case of constructing a new house, whereas EPF withdrawal stands at 12 months’ basic salary + DA in case of renovation.

These are the eligibility conditions and documents required for pf withdrawal for house construction.  

Last year, I withdrew some amount from my PF for the construction of my new house. There are some rules for PF withdrawal in case of house renovation, construction, and purchase. To initiate PF withdrawal, the employee must submit the PF withdrawal application at the concerned EPFO office. Along with the PF withdrawal application, the PF withdrawal for construction of house documents required must also be submitted by the employee. Let me share the details with you all;

Eligibility on Various Types of EPF Withdrawals:

For Renovating and Reconstructing a House:

• The employee is permitted to take money out of his EPF account for renovation and construction.

• The property must be held either in his or her name or jointly with the spouse.

• The employee must have at least five years of experience.

• The member can withdraw 12 times his monthly salary from his provident fund account

Documents required for PF withdrawal for house renovation, and construction:

In addition to the withdrawal form 15g for PF withdrawal, the employee must include a new Declaration Form/Utilisation Certificate

For Purchasing or Constructing a New House:

• A PF member may take a partial withdrawal from his employee provident fund in order to buy and/or build a plot of land.

• The property must be held jointly with his or her spouse or in their name when it is registered.

• A minimum of five years of continuous service is required for an employee.

• You can withdraw up to 24 times your monthly payment for buying a plot, 36 times your monthly salary for buying or building a house, the cost of the property, the sum of your employer's and employee's shares, plus the interest amount, whichever is smaller.

• Withdrawal is permitted only after five years of service are completed.

Documents required for PF withdrawal for house purchase:

An updated Declaration Form/Utilisation Certificate must be submitted by the employee along with the withdrawal form 15g for PF withdrawal.

After understanding the PF withdrawal for construction of house documents required, along with the documents required for house renovation, and purchase. I’d like to say that before the money is taken out of your EPF account and transferred to your bank account, your employer must approve your withdrawal request.

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We all are well aware that a down payment and other lump sum payments are necessary for the purchase of a home. Even though you depend on provident funds (PF) for your retirement, you sometimes are unaware of the requirements to use PF to purchase a home. So let me first tell you about the documents required for PF withdrawal for house purchase.

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What documents do you need to withdraw PF advance for house construction?

You should make a PF withdrawal request to the relevant EPFO office in order to start the withdrawal process. You should also provide the above-mentioned supporting documentation with the PF withdrawal application. It is necessary to use a new declaration form or utilisation certificate PF claim for house construction.

Is it wise to take out PF advance for construction of house?

It might be acceptable to withdraw PF funds in order to buy a home, but experts advise against it. It is recommended to use this fund solely for its primary objective, which is to give some security during retirement. Because it will benefit you during your working years if you continue to add funds to this sum and do not take any from it during the gap. As a result, you will have a sizable capital that may be difficult for many salaried people to build.

This is all from my end about the documents required for PF withdrawal for house purchase.

Read More: How to withdraw PF for house construction? How much PF can be withdrawn for house construction?

Constructing a home is a dream of many because staying in one’s own home is a great feeling. Since over 70% of people contribute to the working population of our country, the central government offers several schemes to make it easier for people to purchase a home. One such measure is the PF (Provident Fund) scheme. Salaried people can use the PF balance to buy a home. However, there are some withdrawal documents and construction of house EPF withdrawal limit that you need to know about.

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Since Surbhij and Renu have already told you about the documents required for PF withdrawal for purchase of land and construction of the home, I will tell you about the withdrawal limit.

If you are an EPF member, then you can use the fund accumulated in your EPF account to facilitate your housing requirements after 3 years of opening the account. You can apply for a withdrawal of up to 90 percent of the accumulated corpus for either the construction of a new home, for the payment of EMIs, or for making the down payment of the home.

Earlier, the max. withdrawal amount was limited to the total contribution of the employer and the employee with the interest of thirty-six months or the property cost, whichever was less. The member wasn’t needed to be a member of the housing scheme for availing this facility. They just had to be an EPF member for 5 years.

Now, the members have more options to use their funds. The time limit (from account opening) has also been reduced to three years. The member’s minimum PF balance needs to be more than Rs. 20000 either individually or including that of the spouse in case she/he is also the EPFO member. However, a member can withdraw the PF balance only once in a lifetime for paying for the home.

As mentioned above, you can refer to the answers of Surbhij and Renu to know about the PF withdrawal for home purchase documents required.

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How to withdraw PF for home purchase?

This is all about the construction of house EPF withdrawal limit.

Employees’ Provident Fund (EPF) is a social security and savings scheme for Indian employees. If you’ve contributed to PF, then you can withdraw money in your PF account for several reasons, such as house construction. Let me tell you about the conditions and documents required for PF withdrawal for house construction. Condition for PF withdrawal for house construction:

Purpose	Eligibility	Limit
Purchase/ Construction of New Home	The Employee must have served minimum of 5 years	90 percent of the PF Balance

PF withdrawal for construction of house documents required: To withdraw the PF, you are required to submit the PF withdrawal application along with the required documents at the concerned EPFO office.

• The UAN (Universal Account Number) that you can easily obtain from the employer
• Bank account details with the same name as mentioned in your EPF account
• The bank account should be in the name of the PF holder as funds can’t be transferred to the 3rd party when the PF holder is alive
• Identity proof that includes personal information such as the date of birth and father’s name
• New Declaration Form/Utilization Certificate is necessary in case of PF withdrawal for a home loan or for construction or purchase of flat/site/house or repayment of housing loan or addition alteration in the existing home.

Read more: How to apply for PF withdrawal for home loan How to check PF balance without UAN How to withdraw pension contribution in EPF I hope you like my answer on the documents required for PF withdrawal online.