Clarification on 54EC & 54F

Hi..

Incase of LTCG arising from sale of shares in India, can 54EC and 54F be used simultaneously?

Also while claiming 54F, should the new property be bought with cash(own funds) or can a home loan be used to make the purchase?

Pls clarify if possible.. Thanks..

Replies (8)
Quick Summary
This discussion clarifies the use of tax exemption sections 54EC and 54F for capital gains in India. While both can generally be claimed simultaneously, 54EC specifically applies to gains from the sale of land or buildings, not shares. For 54F, the new residential property can be purchased using any funds, including a home loan, as the source of funds is not a disqualifying factor.

1. Yes, exemption under both sections can be claimed simultaneously.

2. Purchase of property is mandatory, whatever be source of funds.

But, there are certain additional conditions which can be fulfilled.

Thank you for the clarification Sir..

Most Welcome ...     

54EC is not available in case of sale of shares. It has to be sale of Land or Building or both. 

Yes, I agree. Had missed the sell of Shares, considered it as any immovable property.

I do agree to rectify the statement to that effect...

Yes,both exemption can be claimed.

In case of sec 54EC asset transferred must be a land or building and new asset acquired should be long term asset redeemable after 5 years by NHAI or RECL or any bond notified by government.

In case of 54F new asset acquired must be a residential house property in india.

Being LTCG from sales of shares, Exemption u/s. 54F can only be availed, but not exemption u/s. 54EC.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details
Company
13 October 2026
Accountant

Zerdi & Co. Chartered Accountants

Pune

B.Com

View Details
Company
14 October 2026
GST & TDS ASSISTANT

AGGARWAL SANJAY & ASSOCIATES

New Delhi

B.Com

View Details
Company
30 September 2026
Senior Accountant

Codeboard Technology

Chennai

B.Com

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details
Company
ARTICLESHIP 23 October 2026
Articled Trainee

J Y & CO

Hyderabad

CA Inter

View Details