New Delhi, Feb. 4 -- I purchased a flat worth Rs.50,00,000 on 15/4/2024, against which I took a home loan. On 15/10/2024, I sold my 10 years of commercial property for Rs.45,00,000. So, to get long-term capital gain tax exemption, is it necessary to repay the home loan amount from the money I got from selling the commercial property? Or can I use that money for another purpose and continue the home loan instalments?

Since you have sold the commercial property after holding it for more than 24 months, the capital gains would become taxable as long-term capital gains. Section 54F of the Income Tax Act, 1961, provides an exemption to an individual and a HUF for long-term capital gains arising from the sale of any capital asset other than a ...