PF Withdrawal Rules 2024: Can you withdraw money from PF to buy a new house? Know the rules

Jyoti — Fri, 22 Nov 2024 08:28:49 +0000

PF withdrawal for Property Purchase: If you are thinking of buying a new house and are worried about the funds, then Provident Fund (PF) can be useful for you. PF account holders are given the facility to withdraw a part of the amount deposited in their account.

This is especially helpful for those who are planning to buy their dream house. Let us understand what conditions are necessary to be followed for withdrawing money from PF and how much money can be withdrawn.

Rules for withdrawing money from PF to buy a house

Under the rules of EPFO, PF account holders can make partial withdrawals to buy a house, build a house or repair it. But some conditions have been fixed for this.

To withdraw money from PF, it is necessary that you have completed at least 5 years as a member of EPFO.

If you are buying a plot or a house, you can withdraw 24 times your monthly salary
(including DA) or the total amount deposited in the account, whichever is less.
This limit for building or buying a house can be up to 36 times the monthly salary.
Up to 12 times the monthly salary can be withdrawn for house repairs.

Who can avail this facility?

If you are doing a government or private job and have been contributing to the EPF account for 5 consecutive years, then you can avail this facility. Keep in mind that this withdrawal is completely purpose based, like buying a house, constructing a house or repairing it.

How to apply for withdrawal of money from PF?

To withdraw money from EPF, you have to apply online. You can fill Form-31 through EPFO’s official website or UMANG app. At the time of application, you will have to provide proof of purchase or construction of property, such as agreement copy or documents related to the builder.

Benefits of withdrawing money from PF

The money withdrawn from PF is interest free, so you do not need to take additional loan.
This facility gives you the opportunity to make proper use of your own deposited money.
Unlike bank loan, no guarantor or security is required for PF withdrawal.

Keep these things in mind for PF withdrawal

After withdrawal, your PF balance will decrease, which may affect the amount received at the time of retirement.
It is important to follow the conditions laid down by EPFO, otherwise your application may be rejected.
If you fulfill these conditions, then you can fulfill your dream of owning a house by withdrawing money from PF.
This is a simple and safe method, which gives relief from financial problems.

The post PF Withdrawal Rules 2024: Can you withdraw money from PF to buy a new house? Know the rules first appeared on Rightsofemployees.com.

Property Purchase: Seller’s PAN-Aadhaar not linked? Pay 20% TDS on property purchase

Pravesh Maurya — Thu, 07 Dec 2023 11:41:22 +0000

PAN-Aadhaar Link:: If you are also planning to buy property then this news is useful for you. Before registering the property, make sure that your Aadhaar card and PAN card are linked. Let us know in details>>>>>

Besides, it is also important that the person from whom you are buying the property should also have linked Aadhaar and PAN card. If this is not the case, you may have to pay 20 percent TDS on the property instead of 1 percent.

Rules on property worth Rs 50 lakh or more

According to the Income Tax Act, the buyer of any property worth Rs 50 lakh or more will have to pay 1 percent TDS to the central government and 99 percent of the total cost to the seller. Nearly six months after the end of the time limit for linking Aadhaar and PAN, the Income Tax Department has started sending notices to buyers purchasing property worth more than Rs 50 lakh. In this notice they have been asked to pay 20% TDS on the purchase of property.

Buyers and sellers are receiving notices.

According to media reports, hundreds of property buyers have received such notices. Actually, property sellers have not linked their PAN with Aadhaar. In most of the cases, the PAN card of the property seller became inoperative because it was not linked to Aadhaar. In such a situation, buyers whose PAN card is inoperative are receiving notices after a few months to pay the outstanding TDS on purchasing property worth more than Rs 50 lakh.

This is the whole matter, under Section 139 AA of the Income Tax Act, it is necessary to link Aadhaar in ITR. But, the Income Tax Department has found many such cases where there is no PAN-Aadhaar link. Notices have been issued to these buyers by the Income Tax Department. The last date for linking Aadhaar and PAN card was 31 March 2022. Till this date, PAN and Aadhaar could be linked for free. But now more TDS can be taken from those who do not link PAN and Aadhaar. You can still link PAN and Aadhaar by paying a late fee of Rs 1000.

The post Property Purchase: Seller’s PAN-Aadhaar not linked? Pay 20% TDS on property purchase first appeared on Rightsofemployees.com.