Capital Tax - Section 54F and Home Loan

Shubham Gupta (Software Engineer) (36 Points)

06 July 2022  


I have a question regarding capital gain tax incurred by selling of mutual funds and usage of section 54F to counter that tax, by investing the 'net consideration' housing property.

54F - T M L

The 54F sections says, that I can invest the 'net consideration' I received by selling a mutual fund and reinvest in housing property. The questions is, will 54F be applicable on repayment of loan as well for that property?

Example - 

Suppose, 1 sell Mutual fund worth 10 lacs in an year. I use 5 lac of it to pay to builder for my new house and rest 5 lacs, I use later to repay my housing loan on same property.

Can I claim 10 lacs capital tax benefit in this case or just 5 lacs ( prorated)?