Budget 2018: Restrictions on using capital gains bonds to save tax

Gains from asset classes apart from property have to be invested in other instruments

Capital gains bonds have been the best option to save tax if an individual profited from selling assets such as gold, bonds, house and unlisted stocks, after holding them for over three years. But, from April 1 onwards, taxpayers can only invest in the bonds if they have capital gains from property.

The Budget has proposed to restrict capital gains bonds only to property and also increased the tenure of such bonds from three to five years. Taxpayers now have very limited option to save long-term capital gains from assets other than property.

An alternative is to invest the gains