Kumaran Praveen
Software Engineer

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I have accrued about 10 years in service and have constantly moved my PF accounts to my current employer. I want to take a PF loan of Rs 25L (100% of the PF account balance) to construct a home for which I have all the documents ready. I wanted to know a few things

1) Is is possible to take out all 100% of the money in the PF account if I satisfy the 36 times Basic pay criteria? What are the odds that my application will be rejected?
2) There was a news that TDS will be deducted for pre-mature withdrawal of money from the PF account if it is greater than Rs 30000. But conflicting reports state that it is not for people who have worked for more than 5 years. Can someone comment on this please?
3) Is there a way to pay back the PF office once I have more funds? Will there be a tax benefit for the same? If after a few years I have 25L in my hand, can I put the amount back into the PF account?
4) What are the reasons why a PF loan for construction of a house declined? How will the reason be communicated to the person?

Thanks for your time.

From Australia,
Hi Mr.Krishna,
My answer for your query
1. PF can be with draw for the construction of home and amount could not
i. Not exceeding 36 month Wages (Basic+DA)
ii. Total PF amount (both employee and employer)
iii. Actual cost of Acquisition/Construction.
Which ever is least
2. If you completed 5 years of membership in PF than there is no worry for TDS.
3. Sorry i Don't no.
4. Please check SECTION 68B in Employee Provident Fund Scheme -1952, you will get fair idea.
With Regards
Mr.Thumbs Up

From India, Chennai
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