Section 45 → Section 60
Capital Gains - Basis of Charge
Quick Answer
Section 45 of the Income Tax Act, 1961 (Capital Gains - Basis of Charge) corresponds to Section 60 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 45
Provision Summary
Any profits or gains arising from the transfer of a capital asset shall be chargeable to tax under the head Capital Gains.
Sec 60
Provision Summary
Expanded. Explicitly includes proceeds from high-value life insurance policies and specific virtual digital assets under the generic chargeability.
Key Changes & Highlights
- Year of transfer vs year of receipt disputes minimized with new digital timestamping of asset transfers.
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Frequently Asked Questions
What does Section 45 of the Income Tax Act 1961 deal with?
Section 45 (Capital Gains - Basis of Charge) Any profits or gains arising from the transfer of a capital asset shall be chargeable to tax under the head Capital Gains.
What is the new section number for Section 45 under the Direct Tax Code 2025?
Section 45 of the ITA 1961 maps to Section 60 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 45 under the new tax code?
Section 45 is marked as "Retained" with status "Modified". Impact: High - The foundation of investment taxation.
What are the key changes to Section 45 under DTC 2025?
Year of transfer vs year of receipt disputes minimized with new digital timestamping of asset transfers.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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