Property sale , and its Long Term capital gains.

Tax queries 214 views 3 replies

TaxPayer

28 Points Joined November 2022

I sold off one house and so have some capital gains from it.

1. If I already have couple of houses, Can I still use my capital gains to purchase two more houses, since my capital gain is less than 2 Cr. Is there a restriction that the person should not own more than X number of house.

2. The house that I sold was an independent house.

Can I purchase apartment rather than an independent house with the capitals gains.
Can the apartment be under construction, or should I need to purchase only a ready to move apartment or the one which can be handed over within 3 years. Since it is a builder constructed apartment, and we don't have control over the builder timelines, I am tempted to not go for builder's under construction apartment, as the rule of construction has 3 years limit. Is my understanding correct.

Replies (3)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

198123 Points Joined July 2016

1. No restriction for no. of house properties held, when the you have sold a house property.

2. a. Yes.

2. b. Yes, it can be under construction too, but you should get the possession within 3 years from the date of sell of your original house property.

Krishna

Assistant

702 Points Joined July 2011

You r eligible for 54 exemption. in sec 54 there is no limit on already existing houses. If cg is less than 2 cr. then you can purchase 2 houses. if u plan to buy under construction flat then limit is 3 years

sabyasachi mukherjee

27934 Points Joined May 2017

Sec 54 can be availed entirely.
1. utilize in entirety.utilize the entire capital gain.

2. you can purchase the apartment rather than the entire house . you hv yo follow certain guidelines.