Dear Mihir & Kavitha,
Thanks for your replies. I have following queries too about Capital Gain Tax:
1. If I do not plan to reinvest the capital gain in buying another property, I can buy Capital Gain Bonds from REC or NHAI. But in a Financial year I can not buy these bonds for more than 50L. If capital gain is more than 50L, is there any way I can save tax on remaing money of Capital Gain i.e. Capital Gain over 50L? In case of Bonds, the I guess TAX exemtion will not be given on full 50L invested in bonds but in proportion of 50L/Actual Capital Gain.
2. Till I invest in Bonds, can I keep the money in normal SB/FD accounts of Bank. I am aware that in case one plans to buy another property then he/she has to keep this money in special account possibly called Capital Gain Account but money in this account can be used for buying property within 2 year or constructing another house within 3 years but I am not sure that if I plan to buy Bonds then also I must keep money in this account?
Kindly suggest. Thanking you. Best regards, RAKESH