Urgent Query Exemption u/s 54

The client can get exemption u/s 54 by buying or constructing Residential HP from the sale proceeds provided he utilise the whole of sale proceed.

The requirement is that he should have purchased a residential house within 1 year before or 2 years after the date of transfer or constructed a residential house within 3 years after the date of transfer. There is no requirement that residential house should be used only for residential purpose. So 2nd option would be better. He can also invest in REC bonds u/s 54EC