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LTCG reporting

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Ranjan

1130 Points Posted on 23 May 2024

Dear Members of CAClub

After selling some property, I had put the LTCG of this sale in a Capital Gain Account, while searching for a suitable residential property to purchase with this capital gain. I had reported the same in the applicable AY using ITR2 form.

The property sale was in September 2022, while the Capital Gains Account was opened in June 2023.

I have been unable to find suitable property and the time period of 2 years from sale of my property is completing 22 September 2024.

Please advise :-

1. If there is any way now to save LTCG tax

2. If there is no way to save LTCG tax, then I will pay the 20% + cess as applicable. But which ITR form to use for reporting payment of this tax on the LTCG and which AY should I report it ?

3. Do I get another 2:year time on mandatory closing of my Capital Gains account in September 2024( when 2:Years complete after the sale date of my property) ?

Advice from the experts in this forum would be much appreciated.

Regards

Replies (2)

Quick Summary

This discussion addresses Long Term Capital Gains (LTCG) tax following a property sale. The original poster deposited sale proceeds into a Capital Gains Account while searching for a new home, reporting this in their tax return. With the two-year deadline approaching and no suitable property found, they seek advice on saving LTCG tax, reporting any payable tax, and understanding account closure implications. Expert advice suggests investing the funds before the deadline to avoid tax, or paying the applicable tax if no investment is made.