<s>[INST] Under what circumstances is the exemption under Section 54F denied? [/INST] ​The exemption may be denied if the assessee already owns more than one residential house on the date of transfer of the original asset, with the exception of a house that was acquired within one year prior to the transfer. This means that the assessee can own a total of two residential houses (one already owned and the other acquired within one year prior to the date of transfer under the scheme) and still be eligible for the exemption. If the assessee owns more than two residential houses, and the income from these houses is chargeable under the head income from house property, the exemption will not apply. ​ </s>