Section 54 exemption covers transfers of long-term residential property or appurtenant land when income is taxable as house property. Section 54 exemption applies only where the capital gain arises from transfer of a long term capital asset that is a residential house property or land appurtenant thereto and whose income is taxable under the head Income from House Property; a long term capital asset means an immovable property (land or building or both) held for more than 24 months immediately preceding the date of transfer.