The amount of exemption available is limited to the amount of capital gain invested in these bonds subject to a maximum of Rs.50.00 Lacs.
Partial investment in different financial year for the same transaction of capital gain is not allowed. The above can be explained with the help of following example:
Mr. A sold a house in January’2018 and earned a Capital Gain of Rs. 75.00 Lacs. He invests Rs. 50.00 Lacs in February’2018 and another Rs.25.00 Lacs in April’2018 in Capital Gain Bonds. The Capital Gains exemption allowed in this case would be limited to Rs. 50.00 Lacs only.