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Section 54F Exemption

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kk1234

Engineer

23 Points Posted on 04 November 2026

Can sale of shares (long term capital asset) be exempted against property registered on parents name, with home loan on your name under section 54F.

Home Loan registered on Person A

House Registered on Person A's parent only

Shares / Long Term Capital Asset on Person A

Replies (2)

Quick Summary

This discussion clarifies that selling shares (a long-term capital asset) cannot be exempted under Section 54F if the residential property is registered solely in your parents' name, despite you servicing the home loan. Legal ownership of the property by the individual claiming the exemption is a mandatory requirement. A follow-up question explores gifting shares and paying off a loan, and its potential tax implications.

Aashok Kumar Sharma

Finance/Compliance Consultant

70435 Points Posted on 04 November 2026

An individual selling long-term capital assets (shares) cannot claim a Section 54F income tax exemption on a residential property registered exclusively in their parents' name, even if the home loan is serviced by the individual. Legal ownership (title) in the name of the assessee is a mandatory prerequisite.

kk1234

Engineer

23 Points Posted on 04 November 2026

Thanks for the response! I have another question, if individual gifts shares through gift deed and then pays off the loan, will that get exempted? Would there be tax implications after transfering shares as gift and then selling?