New Delhi, Oct. 25 -- If you have sold land or a building and made a long-term capital gain, you can reduce your tax liability by investing the capital gain in specified bonds under Section 54EC of the Income-tax Act, 1961.

The provision allows eligible taxpayers to claim an exemption, subject to investment limits, deadlines, and holding-period conditions.

Under the Income-tax Act, 2025, which came into effect on April 1, 2026, the corresponding provision is covered under Section 85, relating to capital gains tax exemption on investment in specified bonds, but all the key conditions remain the same.

Section 54EC allows an individual or other eligible taxpayer to claim an exemption on long-term capital gains arising from the transfer of...