Is the capital gain i get from selling equity is invested again in equity, do i need to pay cap gain tax?

Is the capital gain i get from selling equity shares after holding it for more than a year.... is invested again in equity, do i need to pay cap gain tax? i stay in india, i need to know, the rules as per indian law.
P.S. as well i heard if i buy a house from the capital gain i get from selling shares, then i dont have to pay tax for the capital gain i get from selling the shares. can any one put more lights on this issue?

Is the capital gain i get from selling equity shares after holding it for more than a year.... is invested again in equity, do i need to pay cap gain tax?

1) If you sell shares after holding them for more than one year, then the gains are treated as Long Term Capital Gains. They are free from tax. You need not pay any tax on it. So it is left to you weather you again buy shares again or not.

2) But if you sell the shares holding them less than 12 months, they they are treated as Short Term Capital Gains and the gains are taxable @10% flat rate for the financial year 2007-08 and @15% for the FY:2008-09. You cannot escape from paying tax even if you buy shares again with that money.

The rule buying another property is for selling property only and not for the shares. I have already explained you that shares LTCG are free of tax and STCG are taxable.

In case of property sold after 3 years of holding (LTCG), then the tax will be @20% flat rate on indexed gains. In this case you can escape from paying tax if you buy another house/Flat with in 2 years or construct house within 3 years.

no you don't need to pay i Tax if you invest like you have proposed to invest.