Capital gain exemption on residential house property: As per the existing tax

provisions, long-term capital gain arising from sale of a capital asset is exempt under
Section 54/54F if invested in purchase or construction of a house property, subject to
certain conditions. To get the captain gains exemption, the assessee needs to purchase the
new residential house within a period of one year before or two years after transfer of the
original house. For under-construction properties, the construction needs to be completed
within three years from the date of transfer of the original house.
It has now been clarified that the investment for getting capital gains benefit should be
made in one residential house property situated in India, not abroad. This amendment will
apply in relation to the assessment year 2015-16 and subsequent years.