I have sold my society plot in Mumbai in July 2012 and I have capital gain of 10.50 lakh. I don't want to buy a property of this money rather want to invest in tax free bonds. Can you advice as which tax free bonds are good to invest in at what interest rate and locking period?
Answered on November 08, 2017
Both the tax free bonds notified by Central Government currently i.e. NHAI and RECL have the same lock in period of 3 years and rate of interest of 5.25%. So the capital gains of Rs. 10.50 lakhs can be invested in any of the bonds to claim exemption under section 54EC of the Income Tax Act.
