What are Capital gain bonds and how do they help in tax saving?

Capital gain bonds are government-backed investment which provide tax exemption on long-term capital gains. arising from the sale of building or land. By investing the capital gains into these bonds within the prescribed time period, individuals can claim tax exemption under Section 54EC of the Income Tax Act, 1961. The minimum investment in 54EC Capital Gain bonds is generally ₹20,000 (i.e. two bonds, each of face value ₹10,000). The maximum investment limit in a financial year across all issuers is ₹50 lakh.