New Delhi, June 14 -- I bought an apartment in 2022 with a home loan. This year I have sold equity MF holdings with gains of about Rs.60 lakh. Can I use the capital gains to pay off the home loan and get exemption under Sec 54F? I own just this one house, fulfilling the 54F condition.

You would not be eligible to claim the exemption under Section 54F against the capital gains on sale of units of mutual funds on repayment of a housing loan, as the residential property was acquired more than one year before the date of transfer of the mutual fund units.

​​While repayment of a housing loan undertaken for purchase of a residential house can be considered towards exemption under Section 54F, such exemption is available only if th...