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Property sale , and the Long Term capital gains.

TaxPayer (IT) (28 Points)

09 December 2022

Subject : Property sale , and the Long Term capital gains.

Propery sold date : Oct 2022.

Long term capital gains on property sale : 1.5 CR

1. Can I deposit the capital gains money in FD for few months, before ITR filing date? I intend to buy another property before ITR date in July 2023, and hence do not want to open Capital Gains Account Scheme yet, as I may have to use the funds very soon.

2. Can I buy two properties or one using this capital gains?

3. Do I need to pay advance tax instalment in quarter end in Dec 2022, even though I intend to purchase another property to save capital gains?

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 09 December 2022

1. Yes, you can

2. You can buy 2 properties, the option is available once in lifetime.

3. Not mandatory.

1 Like

sabyasachi mukherjee (25963 Points)
Replied 10 December 2022

Property sale and long term Capital gains can be offset u_sec 54F , SEC 54 EC,

1 Like

rama krishnan (12234 Points)
Replied 10 December 2022

1. yes, you can
2. if the property sold was of house property, then you can invest in 2 house properties else it has to be invested in only one house property
3. no

1 Like

TaxPayer (IT) (28 Points)
Replied 12 December 2022

Thanks for responding , Tax Experts.

Couple of follow up questions:

4. 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.

5. I had sold an independent house. So, Can I purchase apartment rather than an independent house with the capitals gains ,and also one which is 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. Is my understanding correct.