Ltcg query: is benefit of 2 house purchase available for property sold in october 2017

Tax queries 151 views 3 replies

Keyur

Self Employed

25 Points Joined May 2019

I sold property in October 2017 and parked capital gains by creating capital gains account within 6 months. I am now planning to purchase property from that fund by October 2019 (2 year timeframe). Last budget had announcement that from current FY, it is allowed to buy 2 houses from that fund. My question is whether I can buy 1 house or 2 houses. I am getting differing views:

(1) As the sale was done in Oct 2017, at that time only 1 house purchase was allowed.

(2) As the funds were parked within 6 months timeframe in capital gains a/c and ITR filed to setoff, Now if property is purchased in current FY, I can avail benefits of 2 houses.

Posting on this forum for getting broader opinion from experts and tie-breaking in above 2 opinions.

Thanks in Advance.

Replies (3)

Neha Pahuja

127 Points Joined October 2016

Itt may not apply to existing unutilised capital gain lying in capital gain account which are to be utilised for buying or constructing house property in 2 or 3 years respectively," said by Kuldip Kumar, partner and leader personal tax, PwC.