In India, Buying a House is a dream of every one and more than 70 percent of the Indian population is employees either in Public or Private sector. On April 20th, 2016, The Government of India in its scheme for “Housing for All” introduced provident fund scheme to finance your home. If you are an employee either in a private or a government sector and are a provident fund account holder, you can withdraw from your respective PF account for financing your Home as an investment in real estate. Moreover, provident fund account holders can withdraw the complete amount from their account before the age of retirement. They can also pay their EMI’s of Home loans from provident fund deposit.
Under the New provident fund scheme, you can use your PF amount for
Buying a Residential Plot
You can withdraw the amount from your provident fund account after five years of contribution towards PF for buying any residential plot, or for building a residential house. This feature is valid if the construction begins in the first six months of the withdrawal and completes within a period of 12 months. If you are buying a ready to move in property, it should be completed within the next six months of your withdrawal of your provident fund. However, there are certain clauses. The property against which you are withdrawing your PF should be either on your name or spouse’s name. Registration on both of your names is also accepted.
Making Renovations to your home
The Provident Fund amount withdrawal is available for the renovation of your house provided that your house must be at least 5 years old from the completion date and you can withdraw maximum of 12 months of your basic salary and DA (Dearness Allowance). Once again, the property should be registered either on your name or spouse name. It is also Ok if it is registered on both of your names.
Repaying your Housing Loan.
To repay your housing loan which is registered on either of your names, a maximum amount of three years of your total salary amount can be withdrawn. This feature is valid only on the home loans provided by registered state housing boards, government-affiliated organizations, nationalized banks and public financial institutions etc.
What to do Next? This is the best time to Investment in Real Estate. Now that you see three more ways of utilizing your PF, Pick your phone and call +91-40-4569 5555 or mail enquiry@adityacc.com for more details on Aditya Construction Projects.
