The exemption of investment is against only long-term capital assets (i.e. sale of land and building)
The exemption is available up to the maximum limit of Rs. 50,00,000 in a financial year and subsequent financial year. The bond should be purchase within 6 months of sale of assets.
In case the Capital gain bond is converted into cash before maturity, then the amount invested on which tax exemption is claimed, shall be taxable as long-term capital gain in the year of conversion.
List of bonds which are redeemable after 5 years from date of purchase.
1. National Highways Authority of India (NHAI),
2. Rural Electrification Corporation (REC),
3. Power Finance Corporation Limited (PFC) Bonds,
4. Indian Railway Finance Corporation (IRFC) Limited Bond.

LET HAVE A CLARITY WITH AN EXAMPLE.

Note: Maximum amount of exemption is Rs. 50 lakhs even if he purchases bond of Rs. 60 lakhs.