Profit earned from the sale of long-term immovable assets such as land, buildings, or both is
taxable under capital gains. However, taxpayers can reduce or avoid this tax liability by
claiming an exemption under Section 54EC of the Income Tax Act. This section allows you
to invest the capital gains in specified bonds notified by the central government within 6
months from the date of sale. These are known as capital gains bonds or 54EC bonds, and
investing in them is a popular strategy to save tax on gains from the sale of immovable
property.