Tax excemption for invest ment in purchase of residential fl

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sandhya (Querist)
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08 January 2014 My husband is retiring in May 2014 end. He got a permanent PF withdrawal of Rs.555000 and bought a flat costing Rs.750000 in November. How much exemption he will get from Rs.555000 and from 190000 he drew from his salary account to meet the cost of the flat. Is he eligible for exemption of interest loss he suffers from permanent with drawl and how much of the 190000 he used for purchasing the flat from salary for the current year can be exempted. please guide us

sandhya anand

Nikhil Kaushik

Nikhil Kaushik (Expert)
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09 January 2014 assuming that your husband was in employment for more than 5 years, the withdrawal is not taxable. So the full amount is exempted...the loss suffered is notional loss and cannot be considered as an expense..the salary shall be fully taxable...no exemption available against investment in housing in this ergard.

Thanks and regards.

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