Section 2(14) → Section 2(20)
Capital Asset
Quick Answer
Section 2(14) of the Income Tax Act, 1961 (Capital Asset) corresponds to Section 2(20) of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 2(14)
Under the Income Tax Act, 1961, Section 2(14) governs capital asset. Property of any kind held by an assessee, whether or not connected with business.
From 1st April 2026, the same subject sits at Section 2(20) of the Income-tax Act, 2025 — retained and renumbered as Section 2(20) of the Income-tax Act, 2025. Expanded explicitly to align with modern asset classes like Virtual Digital Assets (VDAs) and foreign derivatives.
For Section 2(14), the practical impact is rated High. Defines what gets taxed under Capital Gains.
Sec 2(14)
Provision Summary
Property of any kind held by an assessee, whether or not connected with business.
Sec 2(20)
Provision Summary
Expanded explicitly to align with modern asset classes like Virtual Digital Assets (VDAs) and foreign derivatives.
Key Changes & Highlights
- Agricultural land exclusions re-worded for clarity regarding urban agglomeration limits.
Related Sections
Frequently Asked Questions
What is Section 2(14) of the Income Tax Act, 1961 about?
Section 2(14) of the Income Tax Act, 1961 covers capital asset. Property of any kind held by an assessee, whether or not connected with business.
Which section replaces Section 2(14) in the Income-tax Act, 2025?
Section 2(14) of the Income Tax Act, 1961 maps to Section 2(20) of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Expanded explicitly to align with modern asset classes like Virtual Digital Assets (VDAs) and foreign derivatives.
What is the impact of the change to Section 2(14) under the new tax code?
The transition impact for Section 2(14) is rated High. Defines what gets taxed under Capital Gains.
What should I watch out for when Section 2(14) moves to the 2025 code?
Agricultural land exclusions re-worded for clarity regarding urban agglomeration limits. These points are specific to Section 2(14) (Capital Asset).
Disclaimer: This mapping of Section 2(14) (Capital Asset) to Section 2(20) of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 2(14) is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
Need professional help on Section 2(14)?
Compare trusted providers — both offer CA services ready for the Income-tax Act, 2025.
*Affiliate links — we may earn a small commission at no extra cost to you. Disclosure.
Want to calculate tax on this section?