Navigating EPF Withdrawal for Land Purchase: Clarifications on Owner Details and Construction Rules

Hi all, My husband has a purchase agreement with a power for consideration agent for the purchase of residential land. We have decided to withdraw from the EPF for financing the purchase. However, we have several clarifications regarding the filling up of the new declaration.

Clarification on Owner's Details

1. Name and address of the owner of the plot from whom the agreement was executed - We are unsure whether we need to provide the address of the owner or the details of the person holding the power for consideration, as the document entitles him to sell the property to us. It is a valid registered document. Please help.

EPF Withdrawal for Dwelling Site

2. Can we withdraw from the PF for the purchase of a dwelling site, or is it mandatory to construct a house immediately? If so, what is the time limit for constructing a house on that site? Kindly advise.

Property Details

3. Please note that this is simply a residential property in a small town and is not comparable to the plots sold in cities. The area is 25 cents (approximately 4.5 grounds).

Thanks and regards,
Deepa Dixon

Construction or purchase of a house, flat, site, or plot for yourself, your spouse, or joint ownership requires the following criteria:

1. You should have completed at least five years of service.
2. The maximum amount you can avail of is 36 times your wages.
3. To buy a site or plot, the amount is 24 times your salary.
4. This benefit can be availed of just once during your entire service.

Thank you.

Thank you for your response. The information you provided is available on the EPF website as well as in all related articles. However, my query is very specific. Could you please look into my queries and see if you can help resolve these issues? I really need information regarding this.

Regards,
Deepa

Firstly, you should have the registered document of the purchase of land. The name and address of the landowner and the P.A will be in the agreement. If you have already purchased the land, i.e., the transaction is completed, you cannot withdraw the amount from PF. You can provide the documents for the construction of the house, i.e., estimate, permission from the Local Authority, and approved Plan, etc. It is not binding to build the house on the land immediately.

Thanks,
Vidyadhar Bhat

For your concern, it may be city-specific or elsewhere; first, check the eligibility before applying for the PF withdrawal.

Eligibility for the Construction/Purchase of a Dwelling Unit (House/Flat)

• Should complete 5 years of service
• Only once in service
• Property should be in the name of self, spouse, or jointly
• Should not be a joint property owned by anyone other than the spouse

If you meet the above criteria, you may receive 36 times of wages (wages as per section 2(b)).

Proof/Documents Required

Declaration in the proforma obtained along with the application signed by the member. Apply in Form-31 through the employer.

Thank you, Vidhyadhar Bhat. I was searching the internet for the information you provided for almost a week. I'm not planning to construct a house immediately, and the EPF website had no information about this. Thanks a lot. You've been very helpful.

We have entered into an agreement to purchase but haven't actually purchased the land. So I'll go ahead and apply for the PF withdrawal.

Regards,
Deepa

Can somebody tell me this:

Advance PF for the purchase of a site/plot and for the purchase of a flat would be considered separate or the same? I mean, can I apply for an advance against the purchase of a plot now, and for the purchase of a flat later?

Dear Ashish,

The purchase of a plot and a house are two different reasons and can allow for PF withdrawal in both cases. For a plot, it is 24 times the PF salary and for a house, it is 36 times the PF salary, subject to your balance. Initially, you can withdraw for the purchase of a plot, and later you can withdraw for construction purposes.

Thanks,
Bhat