Capital gains applied for charitable purposes: exemption where sale proceeds fund replacement assets or proportional relief for partly used assets. Section 11(1A) exempts capital gains on transfer of trust-held capital assets when sale proceeds are used to acquire another capital asset. For assets held wholly for charitable or religious purposes, exemption equals the capital gain to the extent the net consideration funds the new asset, with full exemption if the entire net consideration is so applied and partial exemption measured by cost differences otherwise. For assets held partly for such purposes, an appropriate fraction of the gain is deemed applied; its extent depends on the portion of consideration and relative costs applied to the new asset.