The asset transferred should be a residential building including land attached to it. Further, any income from the house should be chargeable to tax under the head ‘Income from House Property’. Other types of properties are not eligible for this exemption. The capital gains should arise from the transfer of a long-term capital asset. The house must be held for a period of more than 36 months before the date of sale or transfer. It may be self-occupied or rented out.