If you are looking to save income tax arising out of long term capital gains on the sale of your house,art or property etc then you have an excellent option in NHAI bonds.National Highways Authority of India (NHAI) is currently offering non-convertible bonds with benefits under Section 54 EC of the Income Tax Act.
These bonds offer returns of 6.25% pa payable annually. The minimum amount that one can invest is Rs 50000 while maximum amount in Rs 50 lakhs. The whole amount on maturity is taxable in the hands of the investor. these bonds are among the most efficient tax saving instrument for tax on long term capital gains.
The other option offcourse is to invest this money agin in a new property or house to evade taxes . But , this will again mean that your money is locked for a longer period. These bonds have a maturity period of 3 years and are AAA rated by Crisil, Fitch and CARE indicating high credit quality of these bonds.
One can hold these bonds both in physical as well as demat forms.
For more on this visit http://www.nhai.org/bonds1.html