The old 54 section was:
54. [(1)][Subject to the provisions of sub-section (2), where, in the case of an assessee being an individual or a Hindu undivided family, the capital gain arises from the transfer of a long-term capital asset, being buildings or lands appurtenant thereto, and being a residential house, the income of which is chargeable under the head "Income from house property" (hereafter in this section referred to as the original asset), and the assessee has within a period of one year before or two years after the date on which the transfer took place purchased, or has within a period of three years after that date constructed, a residential house, then, instead of the capital gain being charged to income-tax as income of the previous year in which the transfer took place, it shall be dealt with in accordance with the following provisions of this section
In the Finance Act 2014:
in place of the words “constructed, a residential house”, the words “constructed, one residential house in India” substituted. Hence, no change in basis exemption, but now in Finance Act, 2014 the exemption has been made limited to purchase of one residential house in India only. Before you could purhcase a house in india or outside india but now you can purchase house in india only. Nothing else has been changed. and the same is applicable from 01.04.2015.
54. [(1)][Subject to the provisions of sub-section (2), where, in the case of an assessee being an individual or a Hindu undivided family, the capital gain arises from the transfer of a long-term capital asset, being buildings or lands appurtenant thereto, and being a residential house, the income of which is chargeable under the head "Income from house property" (hereafter in this section referred to as the original asset), and the assessee has within a period of one year before or two years after the date on which the transfer took place purchased, or has within a period of three years after that date constructed, a residential house, then, instead of the capital gain being charged to income-tax as income of the previous year in which the transfer took place, it shall be dealt with in accordance with the following provisions of this section
In the Finance Act 2014:
in place of the words “constructed, a residential house”, the words “constructed, one residential house in India” substituted. Hence, no change in basis exemption, but now in Finance Act, 2014 the exemption has been made limited to purchase of one residential house in India only. Before you could purhcase a house in india or outside india but now you can purchase house in india only. Nothing else has been changed. and the same is applicable from 01.04.2015.
Sec 54 Change as per Finance Act, 2014