If the capital is more than how is it computed?

In case the amount of capital gains is greater than the cost of the new house purchased or constructed, the difference between the capital gains and the cost of the new house is charged as income of the previous year. In case the new house is sold within a period of three years of its purchase or construction, for the purpose of computing capital gains in respect of the new house, the cost will be nil. If the capital gains is less than the cost of new house, how is it computed? In case the amount of capital gains is equal to or less than the cost of the new house, it will not be charged to tax at all. In case the new house is sold within a period of three years of its purchase or construction, for the purpose of computing capital gains in respect of the new house, the cost will be reduced by the amount of the capital gains.