A client purchased a property 3-4 years ago and availed a loan on which he has been promptly paying back EMI's. The client needs to now sell the property due to certain personal requirements. If the client sells the property and uses the proceeds toclose the outstanding principal of the home loan will it be subject to capital gains tax ? Will there be any relief allowed ?
Also, if the sale proceeds exceeds the loan amount. If the remaining proceeds are used to pay of a personal loan (also availed to enhance the value of the property) will there be any relief allowed or will it be subject to capital gains ?
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