how to withdrawal PF for land purchase: eligibility and rules
the EPF Scheme, 2026, effective from 29 June 2026, introduced significant changes to partial withdrawal rules.
the biggest change: A minimum balance of 25% of the total employees provident fund (EPF) balance must remain in the account after any partial withdrawal. this applies to both employee and employer contributions. the withdrawal is calculated from the remaining 75%, which is called the "eligible member balance".
another major shift: Housing-related withdrawals, including land purchase, are now permitted up to five times during the entire EPF membership, compared to earlier restrictions.
the service requirement: Under the new scheme, most partial withdrawals are allowed after just 12 months of EPF membership. however, for land purchase specifically, the five-year membership requirement still applies.
the withdrawal limit: Members can now withdraw up to 100% of their eligible balance for housing-related purposes. the earlier limit of 90% for housing withdrawals has been removed.
eligibility for PF withdrawal for land purchase
membership tenure
a minimum of five years of EPF membership is required to withdraw funds for purchasing a plot or land. this means the member must have been contributing to EPF for at least five continuous years.
property ownership
the property must be registered in the member's name, the spouse's name, or jointly owned by both. withdrawals are not permitted for property purchased with siblings, parents, or friends.
one-time benefit
the facility for land purchase withdrawal is generally available only once during the member's service. however, under the new rules, housing-related withdrawals can be made up to five times in total.
taxability
if the member has completed five years of continuous service, the PF withdrawal is fully tax-free. if service is less than five years and the withdrawal exceeds ₹50,000, tax deducted at source (TDS) is applicable as per rules. since land purchase requires five years of membership, the withdrawal is typically tax-free.
withdrawal limits for land purchase
the maximum withdrawal amount is the lowest of three numbers:
- 24 months of basic wages plus dearness allowance: computed at the time of making the claim
- total of employee and employer share with interest: the accumulated EPF balance
- total cost of the property: the actual purchase price of the land
for buying or constructing a house, the limit goes up to 36 times the monthly salary. but for land purchase specifically, the limit is 24 times monthly basic pay plus DA.
example: A member with a monthly basic wage of ₹50,000 (plus DA of ₹10,000, total ₹60,000) can withdraw up to ₹14,40,000 (24 × ₹60,000). however, if the EPF balance is only ₹10,00,000, the withdrawal is limited to ₹10,00,000.
housing-related withdrawal frequency under new rules
under the EPF Scheme, 2026, housing-related withdrawals have been consolidated into a single category:
- purpose: Purchase of a flat, house or residential plot; construction of a house; repayment of a home loan; renovation, alteration or improvement of a house
- frequency: Up to five times during the entire EPF membership
- minimum service: 12 months (except land purchase which still requires 5 years)
- maximum withdrawal: Up to 100% of eligible member balance
how to apply for PF withdrawal online
the application process is entirely online through the UAN Member Portal.
step 1: ensure KYC is complete
before applying, verify that the following are linked and verified on the universal account number (UAN) portal:
- UAN is activated
- Aadhaar is linked and verified
- PAN details are updated
- bank account details are linked with UAN
- mobile number is registered
step 2: log in to the UAN portal
visit the EPFO Member e-Seva site and log in using UAN and password.
step 3: navigate to the claim section
go to the "Online Services" tab and select "Claim (Form-31, 19, 10C)".
step 4: select the purpose
choose the withdrawal purpose: for land purchase, select the option corresponding to "purchase of site/house/flat" or a similar housing-related category.
step 5: enter the amount
enter the amount to withdraw. the system displays the maximum eligible amount
step 6: upload documents
upload supporting documents if required:
- property documents or agreement for purchase of land
- proof of property registration (eventually)
- any other documents requested by EPFO
step 7: submit the claim
submit the claim using the OTP sent to the Aadhaar-linked mobile number.
once approved, the amount is credited directly to the bank account.
which form to use
different withdrawal requests require different EPFO forms:
- Form 31: Partial PF withdrawal or advance: this is the form used for land purchase
- Form 19: Full and final settlement of EPF balance
- Form 10C: Pension withdrawal under the Employees' Pension Scheme
key points to remember
- five-year rule applies: Land purchase requires five years of membership, even though other partial withdrawals now only need 12 months
- property must be in member's name: The land or plot must be in the name of the member, spouse, or jointly
- one-time benefit: The facility is generally available only once during service
- minimum balance requirement: 25% of the total balance must remain in the account
- tax treatment: Withdrawal is tax-free if five years of service are completed
- housing-related withdrawals: Up to five times during membership, but total claims under this category cannot exceed five
frequently asked questions
1. what is the minimum EPF membership required for land purchase withdrawal?
five years of EPF membership is required. the property must be in the member's name, spouse's name, or jointly owned.
2. how much PF can be withdrawn for buying a plot?
the withdrawal amount is the least of three numbers: 24 months of basic wages and dearness allowance, total EPF balance, or total property cost.
3. is PF withdrawal for land purchase taxable?
if the member has completed five years of continuous service, the withdrawal is fully tax-free. since land purchase requires five years of membership, the withdrawal is typically tax-free.
4. can PF be withdrawn for agricultural land purchase?
PF withdrawal is permitted only for residential plots or land intended for constructing a house. agricultural land typically does not qualify, as the property must be intended for residential purposes.
5. what happens if the property is jointly owned with someone other than spouse?
the property must be in the member's name, spouse's name, or jointly owned with spouse. withdrawals are not permitted for property held with siblings, parents, or friends.
