Section 50CA → Section 79

FMV as sale consideration for unquoted shares

Section 50CA of the old Income-tax Act, 1961 · new section 79 under the Income-tax Act, 2025

New reference Section 79

Income-tax Act, 1961Section 50CA

If consideration for unquoted shares is below FMV (Rule 11UAA), FMV is deemed sale consideration
Exempted classes notified (e.g. resolution plans under IBC)
Buyer side covered by 56(2)(x)

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

Income-tax Act, 2025Section 79

Section 79(1): same FMV substitution
79(2): exempted classes as prescribed
Buyer side: section 92 (old 56(2)(x))

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

What changed

Renumbered; substance unchanged.

Practice notes

Valuation for 50CA and 56(2)(x) follows the same rules; get a valuation report before transfer.

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 50CA in the new Income Tax Act?

Section 79 of the Income-tax Act, 2025.

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

Renumbered; substance unchanged.

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

Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 50CA of the 1961 Act. Section 79 of the 2025 Act applies from tax year 2026-27.

Related sections

50C→78Stamp duty value as sale consideration for land or building 56→92Income from other sources, including taxable gifts (old 56(2)(x))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