TaxTMI 
TaxTMI 
Capital Gain Exemption u/s. 54/54F
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....apital Gain Exemption u/s. 54/54F<br> Query (Issue) Started By: - PRIYAM KHAMBHATA Dated:- 18-2-2026 Last Reply Date:- 19-2-2026 Income Tax<br>Got 2 Replies<br>Income Tax<br>Respected Sir My Father is super senior citizen and he has sold his residential property Rs.1500000 and the said amount has been given to his daughter in-law to invest New Residential property and She has invested such fund....
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....s in New Residential Property purchased of Rs.3900000 in the name of her and his husband within one year from the date of original Residential property transferred. Can my father claim Exemption u/s. 54 in the Return of Income (he has transferred all money to daughter in-law bank account). Property not in the name of my father but in the name of Daughter in-law and Son ....
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.... Please guide me and if any case laws available in this regard please share me Thanking you Reply By Sadanand Bulbule: The Reply: Your father's claim for exemption u/s 54 is legally doubtful because the new property is not in his name but in the daughter-in-law and son's name. Courts have sometimes allowed exemption when property is in spouse's name, but extension to daughter-....
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....in-law / other relatives is generally not accepted unless very strong facts exist. This is my personal opinion. Plz consult the subject experts. Reply By shalini taknet: The Reply: No, your father likely cannot claim exemption u/s 54. The new property must be purchased in his name (or jointly with him) for the exemption to apply, transferring funds to daughter-in-law for a property solely ....
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....in her and sons names doesnt qualify. Section 54 requires the assessee to reinvest LTCG in a new residential house within specified timelines. Courts emphasize ownership/control by the assessee. While spouse names are sometimes allowed (e.g., ITAT cases for practicality), son/DIL is stricter-exemption denied in similar scenarios like u/s 54B for land. Advice: Dont claim it in ITR to avoid sc....
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....rutiny. Super senior status irrelevant here. Show CA bank statements/sale deeds; low reassessment odds. Tax LTCG at 12.5%+cess if unexempted (~Rs. 37k tax on Rs. 15L indexed gains).<br> Discussion Forum - Knowledge Sharing ....