• The entire capital gain realized is invested within 6 months of the date of transfer in eligible bond.
• Such investment is held for 5 years.
• To avail of capital gain exemption, the bonds so acquired cannot be transferred or converted into money or any loan or advance can be taken on security of such bond within 5 years from date of acquisition else, the benefit would be withdrawn.
• If the amount invested in bonds is less than the capital gains realized, only proportionate capital gains would be exempt from tax.
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