Section 2(24) → Section 2(40)
Definition of Income
Quick Answer
Section 2(24) of the Income Tax Act, 1961 (Definition of Income) corresponds to Section 2(40) of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 2(24)
Under the Income Tax Act, 1961, Section 2(24) governs definition of income. An inclusive definition listing what constitutes income, including profits, dividends, perquisites, and capital gains.
The new code maps this to Section 2(40): the provision is retained and renumbered as Section 2(40) of the Income-tax Act, 2025, applying from 1st April 2026. Retained and updated to include new streams like online gaming winnings and crypto air-drops.
On the ground, changes to Section 2(24) carry a High impact. Core to the charging section.
Sec 2(24)
Provision Summary
An inclusive definition listing what constitutes income, including profits, dividends, perquisites, and capital gains.
Sec 2(40)
Provision Summary
Retained and updated to include new streams like online gaming winnings and crypto air-drops.
Key Changes & Highlights
- Direct incorporation of new digital economy income streams.
Related Sections
Frequently Asked Questions
What does Section 2(24) of the Income Tax Act 1961 deal with?
Section 2(24) of the Income Tax Act, 1961 covers definition of income. An inclusive definition listing what constitutes income, including profits, dividends, perquisites, and capital gains.
Where does Section 2(24) of the ITA 1961 go under the Income-tax Act, 2025?
Section 2(24) of the Income Tax Act, 1961 maps to Section 2(40) of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained and updated to include new streams like online gaming winnings and crypto air-drops.
Why does the change to Section 2(24) matter for taxpayers?
The transition impact for Section 2(24) is rated High. Core to the charging section.
What are the key changes to Section 2(24) under the Income-tax Act, 2025?
Direct incorporation of new digital economy income streams. These points are specific to Section 2(24) (Definition of Income).
Disclaimer: This mapping of Section 2(24) (Definition of Income) to Section 2(40) of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 2(24) is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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