In this article, we will see does it really make sense to invest money in capital gains bonds issued by REC (Rural Electrification Corporation) or National Housing Board (NHB) etc.You have 6 months to buy these bonds from the capital gains. These bonds give 8% to 9% returns on average and you have to remain invested for 3 years to avail the savings on tax. However, the returns on these bonds are taxable. It means your effective return is about 6% to 7%. We have the following situation. A person bought an apartment in 2008 at about 46 lakhs and sold in 2012 at 1 crore. First let;s find out the tax obligation and then we will see how we can use this money for better returns over next few years.