The best options for lowering long-term capital gain taxes are capital gains bonds, or 54 EC bonds. Under Section 54EC of the Income Tax Act, taxpayers may be eligible for an exemption from the capital gains tax. Section 54EC will apply if an individual sells long-term real estate and purchases specific designated capital gains bonds.

The maximum amount that can be invested in 54 EC bonds is Rs. 50 lakh. These bonds are financial instruments issued by certain government agencies or groups to provide investors with a tax-saving option for their investments. These bonds are intended to give investors long-term tax exemptions on capital gains.