My father had purchased a house property back in 1991 in co-ownership with his brother.
He sold his 50% share in Feb 2021. There was no ITR filed for FY 2020-21 or ever before as his income had never been in taxable bracket.
He utilised the same funds to purchase another property in Jan 2022 with co-ownership with myself to save on taxes. During this one year the money was invested in short term mutual funds.
Now, he got SMS from IT Dept that he was required to file ITR for AY 2022-23(FY 2021-22). So, I am filing ITR for him now. I have a query: Can we show sale of old property in current FY 2021-22 although it was done in Feb 2021 (FY 2020-21). If not, what is the way forward? How do we declare that the funds obtained on selling house property in Feb 2021 were used to purchase new property in Jan 2022.
CAclubindia
