Section 50 → Section 74

Capital gains on transfer of depreciable assets (block of assets)

Section 50 of the old Income-tax Act, 1961 · new section 74 under the Income-tax Act, 2025

New reference Section 74

Income-tax Act, 1961Section 50

Sale consideration exceeding WDV of the block + additions + expenses = short-term capital gain
If the block ceases to exist, gain/loss = sale value less (WDV + additions)
Always short-term, regardless of holding period
Indexation not relevant

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

Income-tax Act, 2025Section 74

Section 74(2): excess over WDV + additions + transfer expenses deemed STCG
Section 74(3): block ceasing to exist — cost is WDV plus additions; result deemed STCG/STCL
Same 'block of assets' concept
Section 75: cost of acquisition of depreciable asset (old 50A)

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

What changed

Renumbered; computation unchanged.

Practice notes

Long-term rates under 112 do not apply even if the asset was held for years.
Slump sale (50B) has its own page.

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 50 in the new Income Tax Act?

Section 74 of the Income-tax Act, 2025: gains on depreciable assets are deemed short-term.

What changed in section 50 under the new Income Tax Act?

Renumbered; computation unchanged.

Is section 50 still applicable for FY 2025-26?

Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 50 of the 1961 Act. Section 74 of the 2025 Act applies from tax year 2026-27.

Related sections

32→33Depreciation on tangible and intangible business assets 50B→77Capital gains on slump sale of an undertaking 45→67Charge of capital gains: when a transfer gives rise to taxable gains 46–55A→68–91Liquidation, buy-back, cost by mode of acquisition, depreciable assets 50, MLD 50AA, unquoted shares 50CA, advance money 51, 54D–54H, valuation officer