Capital gain used for repayment of housing loan

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  1. Suhas Gosavi

    Suhas Gosavi New Member


    Can we use the money received from sell of a property to repay the housing loan of existing property.
    I have bought this flat 2 years back and currently paying housing loan on the same. I want to sell my old flat and from the money received will repay the loan of my flat which was bought 2 years back. In this situation would it be like I don't have to pay any Capital gain tax? Please explain.

    Thanks and Regards,
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    Capital Gains Exemption is allowed if the flat was purchased max 1 year before or 2 years after the sale of old property.

    As the flat has been purchased by you 2 years before the sale of the property, therefore capital gains exemption will not be allowed in this case.
  3. Beulah

    Beulah New Member

    Can the capital gain be used partially to repay the loan availed to develop the property which was sold and the balance to purchased a plot for future construction of house.
  4. gaurav_kumar

    gaurav_kumar Well-Known Member

    Exemption wont be allowed if the Capital Gains is used to repay the loan.

    Capital Gains should be invested in another property to claim exemption
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