Capital Gain

Hi,

Repayment of Loan will not be available for exemption u/s 54.

But, to the extent of Indexed cost of Acquisition & improvement as the case may be, one can make repayment of loan without attracting capital gain tax, as sec. 54 requires investment of "Capital Gain" for claiming the exemption & not the net sale proceeds.

Mr.Sanjay Baheti

Sec 54 - Transfer of Res. house and purchase or construction of a new res. house....

Repayment of housing loan i.e. principal can be claimed as ded u/s 80 c.....
but pre-costruction principal cannot be claimed as ded....