Section 45 → Section 67

Charge of capital gains: when a transfer gives rise to taxable gains

Section 45 of the old Income-tax Act, 1961 · new section 67 under the Income-tax Act, 2025

New reference Section 67 (47 → 70)

Income-tax Act, 1961Section 45

Gains on transfer of a capital asset taxed in the year of transfer
Special rules: insurance receipts, conversion to stock-in-trade, ULIPs, buyback, etc.
Transactions not regarded as transfer: section 47

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

Income-tax Act, 2025Section 67 (47 → 70)

Charging provision now section 67
Insurance proceeds on destruction of assets (67(2)–(4))
Exemptions referred to: sections 82 to 89 (old 54 series)
Transactions not regarded as transfer: section 70

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

What changed

Renumbered; the charging scope is unchanged.

Practice notes

Holding periods and short-/long-term classification are in the definitions; check them for each asset class.

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

Which section charges capital gains in the new Income Tax Act 2025?

Section 67 (old section 45). Transactions not regarded as transfer (old 47) are in section 70.

What is section 45 called in the new Income-tax Act, 2025?

Section 45 of the Income-tax Act, 1961 corresponds to Section 67 (47 → 70) of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What changed in section 45 under the new Income Tax Act?

Renumbered; the charging scope is unchanged.

Is section 45 still applicable for FY 2025-26?

Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 45 of the 1961 Act. Section 67 (47 → 70) of the 2025 Act applies from tax year 2026-27.

Related sections

48→72How capital gains are computed: sale value less transfer expenses and cost 112→197Tax on long-term capital gains on other assets (property, unlisted shares, gold, etc.)112A→198Tax on long-term capital gains from listed equity shares, equity mutual funds and business trust units (STT paid)