Under Section 54 ITA 1961, EXEMPTION from CAPITAL GAINS on transfer of a residential house is available if:

1. Section 54 Income Tax Act 1961 provides exemption from CAPITAL GAINS on transfer of a residential house if: 2. (i) The transferor PURCHASES another residential house within 1 YEAR BEFORE or 2 YEARS AFTER the date of transfer; OR CONSTRUCTS one within 3 YEARS AFTER the date of transfer; 3. (ii) If not used immediately, capital gains MUST BE DEPOSITED in the Capital Gains Account Scheme; 4. (iii) The exemption is LIMITED to the AMOUNT OF CAPITAL GAINS or the cost of the new property, whichever is lower. 5. Section 54B: similar exemption for transfer of agricultural land used for cultivation (Rs 10 crore cap for residential property + 2 new houses option). 6. Section 54EC: exemption on investment in NHAI/REC bonds up to Rs 50 lakh. 7. Section 54F: similar to 54 for any LTCG (not house) — entire net consideration must be invested. 8. Hence option B is correct. _Source: CS Executive Paper 4 Tax Laws (ICSI BoS) + Income Tax Act 1961 + CGST Act 2017 — Income Tax Act 1961, Section 54_