section 54f

if the person construct a house on the new property within 3 years of capital gain then sec 54 will be applicable. 

residencial house simply described where u will live in after constructing it or buying it, means change in your residential address. 

anything else is not a residential house. 

Capital Gain Exemption (Sec. 54F)

Introduction
Any long-term capital gain arising to an individual or an HUF, from the transfer of any asset, other than a residential house, shall be exempt if the whole of the net consideration is utilised within a period of one year before or two years after the date of transfer for purchase, or within 3 years in construction, of a residential house.
If, however, only a part of net consideration is so utilised, the amount of exemption shall be equal to:

Amount of Net consideration

Conditions
Where an individual or HUF transfers any long-term capital asset, not bes thing a residential house, and invests the net sale proceeds to acquire a residential house, the exemption u/s 54F is available provided following conditions are satisfied.

1) The asset tranferred is a long-term capital asset.

2) The asset is transferred by an individual or HUF.

3) The asset tranferred is any capital asset other than a residential house.

4) The assessee has within the specifed period purchased or constructed a residential house.

5) The assesse does not own more then one residential house on the date of transfer of the original asset, exclusive of the one purchased for claiming exemption under this section i.e. section 54F

6) If the amount cannot be so utilised before filing the return, then inorder to avail of the exemption, it may be deposited under the Capital Gains Accounts Scheme, 1998before the due date for filing the return.

Specified period

1) one year before, or 2 years after the date on which the tranfer took place, for purchase of a house.

2) A period of 3 year after the date on which the tranfer took place, for constuction of a house.

3) If a tax-payer transfers the newly acquired residential house within a period of three years of its purchase or construction, then the amount of capital gains arising from the tranfer of the original asset which was not charged to tax, shall become taxable as long-term capital gains or the year in which the new asset is trasferred.

Important Notes
This concession will not be available in case where the assessee owns more than one residential house on the date of the transfer of the original asset. In other words, the deduction can be availed, even if the assessee owns one residential house on the date of transfer of the original asset. However, if the assessee purchases within two years of constructs within three years after such date any residential house (other than the new asset) the income from which is chargeable under the head ‘Income from House Property’. the amount of capital gains exempted under this section, shall be taxable as ‘long-term capital gains’ in the year in which such other house is purchased or constructed.

Net condideration means the full value of the consdieration as a result of the tranfer of the capital asset minus any expenditure incurred wholly or exclusively in connection with such tranfer.

Any long-term capital gain arising to an individual or an HUF, from the transfer of any asset, other than a residential house, shall be exempt if the whole of the net consideration is utilised within a period of one year before or two years after the date of transfer for purchase, or within 3 years in construction, of a residential house.  (SECTION 54F)

and it was also written that the  income from such preperty shall be charged under head " Income from house property " under section 54F .......

please more clarify your answer ........ and conclusion also 

A residential land, which was allotted in 2008 and payments made under installments, is sold in 2015. From the proceeds, a house property is purchased. Whether the gain arising from sale of land would be exempt u/s54?