Can I Withdraw PF for a House Down Payment Without Repaying It Later?

Hi all,

I am a new member of this forum. I read this regularly and find it to be really useful. I have a query. I have completed 5 years of experience in the same organization. I would like to withdraw some amount of my PF for a down payment for a house. In such a case, I understand that the amount will not be taxable as I have completed 5 years. But I would like to know if this amount withdrawn needs to be repaid (as a loan) again to my PF account. Please help!

Thanks in advance.

The amount taken as an advance/loan is not required to be repaid, but I doubt whether you will get a loan on the above-said ground.

Thank you, Malik! I do not require a loan, but I just want to withdraw money from my PF. I was doubtful whether it needs to be repaid. So, do you mean to say the amount withdrawn needs to be repaid?

Thank you!

Hi,

You can withdraw PF amount from your account for the following purposes after completing 5 years of membership in PF:

1. Construction of a house.
2. Purchase of an empty plot.
3. Purchase of a flat.

For the above, all the documents related to the site and house should be in your name. You do not need to repay the above amount back to PF. However, if you do not produce the following documents for the utilization of the fund, the amount issued will be recovered with minimum interest:

1. For construction - Completion certificate.
2. For the purchase of a plot - Copy of the sale deed.
3. For the purchase of a flat - Copy of the sale deed.

Regards,
Udayakumar G
9443628322

Hi,

Udaykumar's views are perfect, but to add a few points:

1. If you are repaying the loan amount to any bank, you need to submit the amount pending in the bank as documentary evidence. In such a case, you may be required to furnish the original sale deed. Therefore, you need to make a request accordingly.

Also, note that you will be able to withdraw the amount only once during your service (for the same house, you can seek additional loans for construction, etc.), but you cannot obtain a loan for two different locations.

M.V. KANNAN

Partial Withdrawal from PF for Personal Needs

For partial withdrawal from the PF for personal needs such as marriage or purchasing a house, you need to apply using FORM 31 with all the required formalities completed as stated therein.

You can apply for a house loan from your PF contributions for the purchase of a house under Form 31. You will get a loan as per eligibility for constructing a house. Along with Form 31, you are supposed to attach:

1. Your house site document where you propose to construct the house.
2. Non-encumbrance certificate from the concerned Registrar Office for the preceding 12 years.
3. Certified house plan along with the estimated cost for construction.

For purchase:

1. Plot/House documents and their linked documents.
2. Non-encumbrance certificate from the concerned Registrar Office for the preceding 12 years.
3. Agreement to sell document.
4. House tax receipts of the landlord for the house.

The loan does not need to be repaid, but the amount will be deducted from your contributions.