If any individual or HUF gets profit from sale of residential house and such profits are invested in the another residential house within 2yrs of sale or before 1 yr of sale or construction of house with in 3yrs OR profits has to be deposited in CAGS. The amount allowed as exemption is capital gains arrived or cost of acquisition whichever is lower. In case if there are any unutilised CAGS funds then such amount will be taxable as capital gains or transfer of new asset with in 3yrs then earlier exempted amount will be reduced from the cost of acquisition to calculate capital gains thereon.