Tax and investment on capital gains

1. Not directly, but tax liability can reduce if you have any other income under normal slab rate.

2. Yes, you can purchase anything, but CG tax will not reduce. To reduce the LTCG tax liability you need to invest in Capital Gains bonds u/s. 54EC of the act.

how much tax do I need to pay on capital gains of stocks ? And can I claim tax benefit if I repay house loan from capital gains on stocks ?