Want To Use Your PF For Property Purchase? Know The Details Here - Viral Bake

The provident fund used for different purposes, such as medical purposes, house-purchasing, property purchasing, etc. According to the newest PF rules for property purchase, an individual can withdraw up to 90% of his/her PF for property purchase, home constructions on land or buying a home. The land should own by the name of the PF account holder, his wife, or both. 

The person should know that the land should be owned by the name of the PF account holder, his wife, or both. 

Source: PropTiger


However, individuals must have contributed to their PF account for a minimum of five years. This facility is available for all the EPF subscribers of the private sector. Thus, all EPF and PF account holders are eligible for this feature. 

Also Read: Provident Fund News: Check Step-by-Step PF Balance Without UAN Number


What Investment and Property Purchase Experts Say?

While speaking in the context of PF withdrawal for property purchase Mumbai-based tax and investment expert, Balwant Jain said, “PF withdrawal allowed for property purchase only if the salaried person has completed five years of continuous contribution in one’s PF account. This facility is available for both plot buying or the construction of the home or the home buy.”

Source: Plan Radar


The investment expert Jitendra Solanki said that “For purchase of construction of the home, PF or EPF account holder can withdraw one’s 36 months basic salary plus DA or the actual price of the land or amount required for construction, whichever is lower. In any case, PF withdrawal limit can’t be more than 90 percent of the PF/EPF balance.”

He also said that the PF withdrawal limit depends on the purpose of property purchase. For example; to buy a plot, the PF withdrawal must either 24 months basic salary of the person plus Dearness Allowance or the actual amount of the plot, whichever is less. 

If a person wants to withdraw PF for home construction then the land has to be registered in the name of the PF holder, his wife, her husband, or both.


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Vivek Singh

With over 5 years of writing obituaries for a different organisation, I have a uniquely wry voice that shines through in my newest collection of articles.

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