Investment of capital gains?

RS.7,18,915 has arisen to me as capital gains due to sale of my flat on 10/05/06.
I am a senior citizen having very little knowledge about Taxation. Under the situation, I am wondering whether I should pay the Capital Gains Tax @ flat rate of 20% or invest in some govt. bonds-blocking the amount of gains for 3 long years or invest in few local co-operative banks-which offer 9% p.a. intrest.
Iam serching for a safe,best and benificial alternative.
A convincing answer in this matter would help me a great.

Sir Section 54 of the Income Tax Act 1961 gives the details of saving tax it goes that you have either to purchase bonds as you mentioned but it wont help as those bond would have to be reinvested in same Capital asset rather you can go for another same type of asset of same value you have 3 years from the date of sale or get your money invested in bond and keep renewing each tenure and the last option will be pay a tax and the correctly specifed rate

you have to invest in specified bonds,cooperatives wont help.its no use paying taxes.bond is the only way.

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