Where can i invest money from sale of inherited property to avoid capital gains tax ?

part share in flat willed to me by my mother and sold recently.

See, there are lots of issues which determine the taxability of capital gains under I T Act1961 .You have not given complete detail.
Presuming , its a residential property, then first the compuation has to be done by taking the Indexation method . Find out the date of purchase of the residential property and cost as on that date. If it was purchased before 1984, then market value as on 1.4.1984 has to be taken as cost and then indexation has to be applied.
This way, capital gains has to be computed. If there is capital gain is there, you have following option
1. Purchase /construct a residential house within two years of the amount equal to long term capital gain.
2. If you do not want to purchase immediately, but plan to purchase within 3 years, deposit the amount of capital gain in SBI or other bank in Capital Gain Account scheme , before filing return of income.
3. Under 5EC of the I T Act, there are capital assets in which if capital gains are invested for at least three years, then the capital gain is exempt from taxation.

Hope your

I think if you reinvest it in property you can avoid the capital gains tax. You can also put it into something like a Roth IRA which would avoid any taxes until you collect interest.

Universal Life Insurance with an Index option, no taxable event unless you close the policy you can borrow $$$ anytime without having to repay and you can access before retirement ages... Great little too.

Indexation may not be a suitable option if the property has been a recent purchase and the price has gone up far more than the index table. You may find it cheaper/better to pay tax directly on the gains.

Remember, any investments you make may end up locking your funds over extended periods of time, maybe even seven years at abysmally low interest rates - lower than the inflation rate sometimes and hence in real terms you may suffer capital erosion. The interest offered by most capital gains bonds though low, is taxable.

Study the options and then take a call. You may find it beneficial investing in a good mutual fund after paying taxes, your returns could be be higher, though mutual fund or any equity and debt related investments are subject to market risks. For more details do get in touch with me, maybe I can help.