Loan repayment from capital gain

Hello,

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. 

Regards,

CA Hunny Badlani

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

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.

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