Capital gain exemption on reinvestment in residential house: proportionate relief if new house bought or constructed within prescribed periods. Capital gain on transfer of a long-term capital asset other than a residential house is not charged where an individual purchases a residential house within one year before or after the transfer or constructs one within three years after; full exemption applies if cost of the new house is at least the net consideration, otherwise exemption is proportionate to cost. The exemption is denied if the assessee owns or acquires, within the specified periods, any other residential house yielding income under 'Income from house property.' Exempted amounts are deemed taxable if a different residential house is later purchased/constructed within the periods or if the new asset is transferred within three years.