Investment of Capital gains

If the flat you sold was owned by you for 36 months or more, Two options available to you are:

1). Claim exemption u/s 54, if you have purchased another residential house within last 1 year (i.e. April 06 onwards) or invest capital gain in purchase/ construction of new residential house.
You can deposit the capital gain for next 2/ 3 years with the purpose of buying/ constructing the house.

2) Invest the money to the extent of capital gain in Rural Electrification Corpn. bonds or NABARD Bonds within 6 months (Oct,07) and claim deduction U/s 54 EC.

Thanks & Regards,

Ashish

old posts.. i guess rules have now changed very much. plz chk latest info