Capital gain on transfer of certain capital assets not to be charged in case of investment in residential house

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....purchased, or has within a period of three years after that date ^10[constructed, one residential house in India] (hereafter in this section referred to as the new asset), the capital gain shall be dealt with in accordance with the following provisions of this section, that is to say,- (a) if the cost of the new asset is not less than the net consideration in respect of the original asset, the whole of such capital gain shall not be charged under section 45 ; (b) if the cost of the new asset is less than the net consideration in respect of the original asset, so much of the capital gain as bears to the whole of the capital gain the same proportion as the cost of the new asset bears to the net consideration, shall not be ch....

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....years after such date, any residential house, the income from which is chargeable under the head "Income from house property", other than the new asset, the amount of capital gain arising from the transfer of the original asset not charged under section 45 on the basis of the cost of such new asset as provided in clause (a), or, as the case may be, clause (b), of sub-section (1), shall be deemed to be income chargeable under the head "Capital gains" relating to long-term capital assets of the previous year in which such residential house is purchased or constructed. (3) Where the new asset is transferred within a period of three years from the date of its purchase or, as the case may be, its construction, the amount of capital gain ....

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....emed to be the cost of the new asset : Provided that if the amount deposited under this sub-section is not utilised wholly or partly for the purchase or construction of the new asset within the period specified in sub-section (1), then,- (i) the amount by which- (a) the amount of capital gain arising from the transfer of the original asset not charged under section 45 on the basis of the cost of the new asset as provided in clause (a) or, as the case may be, clause (b) of sub-section (1), exceeds (b) the amount that would not have been so charged had the amount actually utilised by the assessee for the purchase or construction of the new asset within the period specified in sub-section (1) been the cost of the ....

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....8 before it was read as, "(i) "long-term capital asset" means a capital asset which is not a short-term capital asset;" 6.  Omitted vide Section 23 of the Finance Act, 1987 w.e.f. 01-04-1988 before it was read as, "(ii)"  7.  Substituted vide Section 23 of the Finance Act, 1987 w.e.f. 01-04-1988 before it was read as, "one year" 8.  Inserted vide Section 23 of the Finance Act, 1987 w.e.f. 01-04-1988 9.  Omitted vide Section 31 of the Finance Act, 1992 w.e.f. 01-04-1993 before it was read as, "Explanation : Where any amount becomes chargeable under section 45 in accordance with sub-section (2) or sub-section (3) or the proviso to this s....