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LTCG Utilisation-ITR Form

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Sudheesh Boas

1 Points Posted on 27 December 2021

I had sold a vacant land in Aug 19 and deposited entire sale consideration in LTCG account scheme with a nationalised bank and the capital gains was declared by filing ITR-2 in AY 20-21. In June 21, entire sale consideration was utilised for purchase of residential property. For AY21-22, do I need show usage of funds by filing ITR-2 and just ITR-1 will suffice being a salaried employee?

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Quick Summary

This discussion clarifies the process of declaring the utilisation of Long Term Capital Gains (LTCG) funds for purchasing a residential property. It explains that while the initial sale and deposit into an LTCG account need to be declared in ITR-2, the subsequent utilisation of these funds for property purchase does not require a separate declaration in any ITR form. For salaried individuals, filing ITR-1 is sufficient after the funds have been utilised.