This tool helps you decide availing of section 54EA or 54EB for saving capital gains tax

The difference between the sale price and the purchase price of a capital asset is known as capital gain or loss. In case of financial asset if the holding period is less than 1 year, the gain is treated as short term capital gain, otherwise it is treated as long term capital gain. In case of property the respective periods are less than 3 or more than 3 years.

In case of Short Term Capital Gain, the gain is clubbed with your annual income and you pay tax on the entire income. In case of Long Term Capital Gain, you have two options of calculating the tax:
  @ 10% without indexation (plus surcharge of 10%)
  @ 20% with indexation (plus surcharge of 10%)
You have to pay the lower of the two values as calculated above.

For the long term capital gains realised before March 31, 2000, you can avail fo Section 54 EA or 54 EB (within 6 months of sale of asset). Under 54 EA, the entire sale proceed of the capital asset has to be invested in the specified avenue for 3 years. While under 54 EB, you have to invest your capital gain in the specified avenue for a period of 7 years.