The Statutory Brief

IT Act 1961 → 2025 / Section 50C

Capital gains

Section 50C → Section 78

Stamp duty value as sale consideration for land or building

Section 50C of the old Income-tax Act, 1961 · new section 78 under the Income-tax Act, 2025

New reference Section 78

Income-tax Act, 1961Section 50C

  • If sale price is below stamp duty value, stamp duty value is taken as consideration
  • 10% safe harbour: no adjustment if SDV is within 110% of consideration
  • Agreement-date SDV allowed where advance is paid by banking channel
  • Reference to Valuation Officer on objection

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

Income-tax Act, 2025Section 78

  • Same rule, now section 78
  • 110% tolerance retained (78(1)(b))
  • Agreement-date SDV option retained where advance is paid in 'specified banking or online mode'
  • Valuation Officer reference retained (78(2), (3))

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

What changed

Renumbered. Substance unchanged.

Practice notes

  • The buyer-side counterpart (old 56(2)(x)) and the business-asset rule (old 43CA) have their own new sections.
  • Capital gains tax on the gain: section 197 (old 112).

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 50C called in the new Income-tax Act, 2025?

Section 50C of the Income-tax Act, 1961 corresponds to Section 78 of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

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

Renumbered. Substance unchanged.

Is section 50C still applicable for FY 2025-26?

Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 50C of the 1961 Act. Section 78 of the 2025 Act applies from tax year 2026-27.

Related sections

112→197Tax on long-term capital gains on other assets (property, unlisted shares, gold, etc.)54→82Exemption on long-term capital gain from sale of a residential house reinvested in another residential house54F→86Exemption on long-term capital gain from any asset other than a residential house, when net consideration is invested in a residential house