Hi,
I am in a confusing situation for PF withdrawal and needs some help. I have total of 12yrs 6 months exp but in the current company I served for 4yrs 3 months and moving on to new company next month. I have surplus of 10L plus in PF account. I also have a site loan (SBI MaxiGain) running with -20L balance. I have taken 1.5 yrs ago and for my site alone. I soon should start my house construction with additional loan. So, I want to either close the site lone or construct the house using PF money.
Is it recommended to close the loan but pay tax on PF? I am under 30% tax slab. Is it better to wait for another 9 months (by transferring to new company) or close the loan and save the site/plot loan interest. The current company’s PF trust is owned by private entity and my new company uses government’s trust. My friends had bitter experiences with government PF trusts as they do not act in time and also bargain for commissions. So, I am worried to move my money there.
Also, is there any mandate to construct a house in 2 years as I had taken a site loan (for 10 yrs) with MaxiGain? If not, I can also opt for PF transfer.
Sorry for too many questions.
Any help greatly appreciated.
Thanks & Regards
Kalyan