Alternatively, you can invest Long Term Capital Gains ( LTCG) in specified bonds under section 54EC. The investment should be made within six months of sale date of land subject to a limit of Rs.50 lakh and fulfilment of specified conditions.
Investment in a new house or specified bonds has a lock-in of three years. If the new house is sold or bonds are converted into cash within three years, exemption claimed from LTCG shall be revoked. If you take a loan against the security of the bonds, then the bonds shall be deemed to be converted into cash.