I purchased a site for Rs85,000/- in 30/03/2001 and planning to sell it this year(2014-15) for Rs35,000,000/-. What will be the long term capital gains for this? If I invest in bonds for 3 years, will the amount be taxable after 3 years?
The long term capital gains will be 10% flat or 20% with indexation. Please refer to the Guide From Income Tax for How to Compute Your Capital Gains. The computation is given on page 16 and Index for various years on page 97.
If you invest into specified bonds, there is no tax obligation in the said financial year, when the bonds mature it will be taxable unless you again invest into specified bonds or other capital asset.