If I sell a property and have a long-term capital gain, can the capital-gain amount be used to repay the principal of an existing/new home loan for another residential property and still qualify for the Section 54 exemption?
- For exampleProperty A is sold, generating LTCG.
- Property B is a residential house purchased with a home loan.
- Can the LTCG proceeds be used to make principal repayments on the loan for Property B?
- Does it matter whether the home loan was taken before or after the sale of Property A?
Is there any specific timing/documentation requirement for claiming the exemption?
Looking for guidance from CAs/tax professionals, especially based on practical ITR scrutiny experience.
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