• Loan repayment from capital gain

Dear Sir /Madam

I have purchased a flat on Oct,2020 at Noida Jointly with wife. My wife is homemaker. We have also Taken a loan jointly. The loan EMI will be paid by Me.

Now my wife is planning to sell a land ( received from her father) in Nov-Dec, 2020 and want to repay the loan (partial or 50%) by the money received from selling the land. 

Can she claim the saving on capital gain tax on amount used for repayment the loan.

Please advise.

Thanks in advance


Asked 12 months ago in Capital Gains Tax



Yes, she can claim the exemption u/s. 54F.

The condition to be satisfied to claim the exemption is that the residential property should be purchased either within one year prior to the sale of the property (on which LTCG is earned) or within two years(Purchase) or three years(Construction) from the date of sale of the property.

Since the flat has been purchased within one year prior to the date of sale of the land, the exemption u/s. 54F would be available.

I hope this answer satisfies your requirements. 



CA Hunny Badlani

Hunny Badlani
CA, Madhya Pradesh
2584 Answers
12 Consultations

5.0 on 5.0

As per Income tax Act, If you are using your entire sale proceeds to pay for house property you may end up paying no tax on your gains when – You satisfy all these conditions

(a)Purchase one house within 1 year before the date of transfer or 2 years after that

(b) Construct one house within 3 years after the date of transfer

(c)You do not sell this house within 3 years of purchase or construction

(d)This new house purchased or constructed must be situated in India


Thus, she can do so

CA Vidya Jain

Vidya Jain
CA, Kolkata
956 Answers
48 Consultations

4.8 on 5.0

Yes she can but we need to discuss the same over call.


Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement. You can even book phone consultation for further personal assistance.

Thank you.

Naman Maloo
CA, Jaipur
3893 Answers
52 Consultations

5.0 on 5.0

capital gain can be exempted  u/s 54 EC  or 54F in your case so repayment of housing loan not eligible for exemption  you have to either purchased 54EC bond of  house property

Nitin Jain
CA, Jaipur
215 Answers

4.7 on 5.0

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