Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

Epf withdrawal for home

Sal (A) (53 Points)

01 April 2012

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

Reply
Follow
Share

2 Replies

Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 02 April 2012

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.

1 Like