03 December 2008
I have sold a land and have long term capital gain. I want to know the tax implication and how can I avoid capital gains tax. Because I have come to know that if I invest my sale proceeds in some specified place I can avoid the tax. Please tell me how?
The money should be invested in Bonds issued by NATIONAL HIGHWAY AUTHORITY OF INDIA and RURAL ELECTRIFICATION CORP. within 6 months of the transfer of LAND.
The exemption amount will be lower of capital gain or the amount invested in above bonds. (SEC. 54EC)
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