Section 54/54f - sale of non agricutural land

Read the first provision of Sec. 54F ..............

Provided that nothing contained in this sub-section shall apply where—

(a) the assessee,—

(i) owns more than one residential house, other than the new asset, on the date of transfer of the original asset; or

(ii) purchases any residential house, other than the new asset, within a period of one year after the date of transfer of the original asset; or

(iii) constructs any residential house, other than the new asset, within a period of three years after the date of transfer of the original asset; and

(b) the income from such residential house, other than the one residential house owned on the date of transfer of the original asset, is chargeable under the head "Income from house property".  ........"""

So, even if it may not be considered as residential unit for the section in present condition, but for next 3 years if you get its possession the condition will be breached. & hence the capital gain tax liability will arise.