I had sold the following two properties :
1. Residential apartment in March 2021
2. Residential land in June 2020.
I would like to know if I can use the proceeds of the above two properties to buy third apartment for residential purpose in same financial year? Can the capital gains from the above two properties be used to invest in the third apartment?
Yes, provided you do not have any other residential property, other than the sold one.
Sir thanks for a very quick response !
Actually the residential property that I am using the proceeds from the two properties sale , is the one where I am currently already residing.
I am using the proceeds of the two property sales to pre pay loan amount of the third property ( where I am residing)
Is it still valid?
Not valid as per sec. 54F of IT act.
When the property was purchased? You may be eligible for Sec. 54 deduction... but need to verify.
Sir thanks , The current property where I am residing ( and using the other properties sale proceeds to pre pay loan) :
1 . Sale Deed done in June 2020
2. Sale agreement ( for Home loan ) and downpayment done in Sept 2018.
CAclubindia
