Saving tax on capital gains

1. Capital Gains depend upon holding period. Since you are saying that it is a property it will be STCG if held for less than 36 months and LTCG otherwise.
 (But you must also state whether you are doing business in the form of real estate. If yes then it will be business income and not capital gains.)

2. You case save taxes by obtaining bonds of REC or NHAI.

Thanks for the Information...Some clarification...

1. I believe it is STCG since the property will be sold off immediately on possession...36 month clause will apply only from date of possession, I presume. Am I right?

2. The Bond thing...Does it apply to both the STCG and LTCG? And what should be invested the whole amount (Principal and Capital Gains) or Only (Capital gains)?

3. Interest, which will be paid for Housing loan does that get reduce from the Capital gains, I set off the losses against my house property?

4. Alternatively, can I use the Capital gains to repay the Housing loan for the second property, Which I plan to keep there will be a HGS loan, which I plan to repay thru the Capital gains of 1st Property. Will that help in saving CG tax?

For the purpose of detemining the period of holding , the date of acquisition and the preceding date of transfer is considered. Therefore STCG

However if FLAT is  purchased from co-operative housing society then the date of allotment of shares shall be considered for determining the peiod

Plus consider Mr. Praveens point also for PGBP if appplicable

For saving tax

IF YOU HOLD IT FOR ATLEAST 36 MONTHS THEN YOU WILL BE ELIGIBLE FOR OTHER EXEMPTIONS ALSO LIKE

sec 54 In case of residential house property

Applicable only to HUF/ individual

RESIDENTIAL HOUSE PROPERY IS TRANSFERRED (if you declare the asset as house proprty)

sec 54 F (other than residential property)

sec 54 EC (LTCG Only)

As mentioned by Mr. Praveen NHAI or RECL (REDEEMABLE AFTER 3  YEARS)

Max amount 50 lakhs rupees

invest within 6 months from date of transfer

  You should hold the property