Exemption of Long term capital gains invested in Capital gains bonds

1. Tax Exemption:

.01      Long Term Capital Gains [ LTCG ] arising from sale of immovable asset are exempt if the same are Invested in Capital Gains Bonds within a period of six months from the date of transfer.

.02      LTCG upto INR 5 mn will be exempt from tax if the same are invested in Capital Gains Bonds.

.03      If part of LTCG are invested in Capital Gains Bonds exemption will be granted to that extent. 

.04     However if the LTCG total to more than INR 5 mn than the exemption is restricted to INR 5 mn   only and the balance of LTCG are not eligible of tax exemption under this scheme.       

2. Conditions:
 

.01      The Capital Gains Bonds should be held for a minimum period of five years.

.02      The exemption has a ceiling of INR 5 mn.
 

.03      The Investment is to be made within six months from the date of transfer.