Sale of inherited agricultural land

For LTCG calculation period of holding will be from the date it was held by the person who inherited it to you and indexation will be done of that day when it was first held by inheritor. You can purchase one house or purchase capital bonds with specific lock in period.

YOU CAN INVEST THE LONG TERM CAPITAL GAIN IN SPECIFIED BONDS OF NHAI AND RECL AS MENTIONED IN SECTION 54F OF INCOME TAX ACT, 1961 UPTO THE AMOUNT OF 50LAKHS WITHIN 6 MONTHS FROM THE DATE OF SALE DEED ..THIS BONDS ARE REDEEMED AFTER 5 YEARS...INTEREST RATE 5-6 % ...THESE ARE AAA RATED BONDS BY CRISIL...INVESTING IN SUCH BONDS ARE RISK FREE..