I have sold my property for 15 lacs.Valuation after indexation is 8 lacs of the property.I have invested 7 lacs in Rural electrification bonds(REC).The market value of the property is 25 lacs but 15 lacs is the maximum available for my property due to the construction and closeby surrounding location.Am I liable to pay any capital gain tax?Was investing in REC a good decision or I should have purchased a flat somewhere else?If the decision was bad what would be the difference or advantages of doing so?

I have no idea what you are talking about.

This is a forum for US tax.

The reference to "lacs" shows this to be an tax question under the tax system of India.

Access the answers by Mukata; on one of them, he will have a link in an Indian tax forum.