Long term capital gains tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 November 2010 I have sold some property in October 2010 with a long term capital gain of Rs. 45 lakhs. I plan to invest this amount for 3 years in REC Bonds to avoid paying capital gains tax. If I sell a flat in November 2010 incurring long-term capital gains of Rs. 20 lakhs, can I avoid tax on this amount by investing it in REC or NHAI bonds in April 2011, given that the limit on investment in bonds in a given financial year is Rs. 50 lakhs?

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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02 November 2010 You have to invest within 6 month from the date of transfer. You can break the amount and deposit the amount in different period but both the dates must be within 6 months from the date of transfer.