<h1>Kerala High Court: Section 54F Capital Gains Exemption Only for New Construction, Not Renovations or Modifications.</h1> The Kerala High Court ruled that under Section 54F of the Income Tax Act, 1961, exemptions on capital gains from the sale of residential property are not applicable for investments in renovations or modifications of an existing house. The exemption applies only to the construction of a new house or the addition of a self-contained floor. In the case reviewed, the taxpayer was denied the deduction as the investment was merely an addition to the plinth area, considered a modification rather than new construction.