# SWP for home loan prepayment may risk tax exemption, warns expert 2026-08-10T08:54:47+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 1 independent outlet Taxpayers considering Systematic Withdrawal Plans (SWPs) from mutual funds for monthly home loan prepayments risk losing capital gains exemption under Section 54F, says Cleartax founder Archit Gupta. Each SWP payout is treated as an independent transaction, potentially conflicting with the section's reinvestment timelines and the Capital Gains Account Scheme. Gupta recommends a single, consolidated lump-sum redemption of long-term capital gains within the prescribed one-year window before or two years after the property sale. This approach provides a clearer audit trail and reduces compliance risks, though the full or proportionate exemption remains available under both old and new tax regimes if core investment criteria are met. ## Coverage - livemint.com Tags: capital gains tax, Home loan, mutual funds, Section 54F, SWP, tax planning Canonical: https://indianopinion.org/using-swps-for-home-loan-prepayments-faces-tax-hurdles/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/using-swps-for-home-loan-prepayments-faces-tax-hurdles/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.