Section 2(47) → Section 2(109)

Definition of 'transfer' of a capital asset

Section 2(47) of the old Income-tax Act, 1961 · new section 2(109) under the Income-tax Act, 2025

New reference Section 2(109)

Income-tax Act, 1961Section 2(47)

Sale, exchange, relinquishment, extinguishment of rights, compulsory acquisition
Conversion into stock-in-trade; maturity of zero coupon bonds
Part-performance possession (53A TPA); arrangements transferring enjoyment of immovable property
Explanation 2: indirect transfer of Indian assets via foreign shares

Applies to FY 2025-26 (AY 2026-27) and earlier years.

Income-tax Act, 2025Section 2(109)

Section 2(109)(a)–(h): same clauses
(f), (g): co-operative/company routes and part performance possession
(h): includes indirect transfers through shares of foreign companies
'Immovable property' defined in the same clause

Applies from tax year 2026-27 (from 1 April 2026).

What changed

Renumbered; substance unchanged.

Practice notes

Joint development agreements: see section 45(5A) page for the timing rule.

These are summaries, not the statutory text. Read the bare Act for both sections on the Income Tax Department's official site, which also has a side-by-side comparison utility.

Frequently asked

What is section 2(47) in the new Income Tax Act?

The definition of 'transfer' is section 2(109) of the Income-tax Act, 2025.

What changed in section 2(47) under the new Income Tax Act?

Renumbered; substance unchanged.

Is section 2(47) still applicable for FY 2025-26?

Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 2(47) of the 1961 Act. Section 2(109) of the 2025 Act applies from tax year 2026-27.

Related sections

45→67Charge of capital gains: when a transfer gives rise to taxable gains 50C→78Stamp duty value as sale consideration for land or building 48→72How capital gains are computed: sale value less transfer expenses and cost