Loss of interest if PF withdrawn before year end?

POSTED BY tmklsankar ON January 1, 2014 1:20 pm COMMENTS (4)

Hi All,

I am planning to purchase a resale flat(8 years old) and would like to avail Non repayable EPF withdrawal. I have couple of questions regarding this.

1. Is PF withdrawal allowed for purchase of resale flat/house?

2. If I withdraw the amount in Jan/Feb, will I lose the entire interest which will be credited by April 1st or may get pro-rata interest as I have kept the amount till Dec.I have about 5L in pf so will I be losing about 40K if I withdraw now rathen than after April?

3. In case the entire interest is lost, Please suggest any way I can reduce this. I need to pay to the owner by Feb by the way.

 

Thanks,

4 replies on this article “Loss of interest if PF withdrawn before year end?”

  1. ashalanshu says:
    January 2, 2014 at 9:53 am

    Dear Tmklsankar, you can not withdraw 100%. if you arw withdrawing in Feb, you ‘ll get interest upto Jan on the withdrawn amount.

    thanks

    Ashal

    Reply
    1. tmklsankar says:
      January 2, 2014 at 10:13 am

      Thats great. Thanks once again Ashal.

      Reply
  2. ashalanshu says:
    January 1, 2014 at 5:08 pm

    Dear Tmklsankar, let me try to answer your queries.

    1. Yes, PF can be withdrawn for a ready built house no matter it’s few days old or few years old.

    2. You ‘ll get pro rata interest up to Dec.

    3. As it’s Pro rata interest, there is no loss for you now.

    Thanks

    Ashal

    Reply
    1. tmklsankar says:
      January 2, 2014 at 9:52 am

      Thanks a lot Ashal. So even if I withdraw the full PF amount and the balance is 0, still will be getting the pro-rata interest on the amount before withdrawal by April right?

      Reply

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