Property sale , and the Long Term capital gains.

Tax queries 474 views 4 replies

TaxPayer

28 Points Posted on 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?

Replies (4)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211705 Points Posted on 09 December 2022

1. Yes, you can

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

3. Not mandatory.

sabyasachi mukherjee

Profession Business

28207 Points Posted on 10 December 2022

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

rama krishnan

12244 Points Posted on 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

TaxPayer

28 Points Posted on 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.