Epf withdrawal for home

Others 1132 views 2 replies

Sal

53 Points Joined July 2011

Hello,

I am a salaried employee. I have purchased a second house. I know that I can withdraw amount from Employee Provident Fund for housing purpose but I am unable to find answers to the following 2 questions:-

1.) Can I withdraw money from EPF for my second house as well ?

2.) My second house is under construction. What if I withdraw money from EPF and sell this house before possession/registration. Do I need to return the money to Employee Provident Fund Organisation/Trust. Is there any tax liabilty that is involved in such a case ?

Can experts please provide answers to the above questions ?

Regards,

Salil

Replies (2)

Giridhar S Karandikar

Team Lead

7558 Points Joined November 2011

Sec 418(2) the employe can withdraw the amount from the PF account. So you can withdraw the amount for yoru second house as well.

As per your 2nd question, if you sell the house then you will be liable to Short term Capital Gains tax @ 15%. You do not have to reutrn the money to the EPFO.