Real estate investors in a quandry over capital gains tax bonds

New Delhi, Sep 1 (UNI) Those who have sold real estate properties and made capital gains will find it difficult to save tax, despite the fact that there are provisions to this effect in the Budget.

The government had allowed investment to save tax on capital gains in the bonds of Nataional Highway Authority of India (HHAI) and Rural Electrific Corporation (REC), with a lock in period of three years.

The two companies had decided to raise Rs 7,000 crores -- an amount of Rs 6,000 crore by REC and Rs 1,500 crore by NHAI under the scheme.

The limit has already been exhausted and these companies have no plans to bring another trache of bonds.

A spokesman of the CBDT today told newspersons here that the government was seized of the matter and will do something to ameliorate their hardships.

However, he was not equivocal as to when this will happen and what will be the mode of doing so. This could leave the real estate investors in a lurch, at least for the time being.

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