Section 2(47) → Section 2(72)
Definition of Transfer
Quick Answer
Section 2(47) of the Income Tax Act, 1961 (Definition of Transfer) corresponds to Section 2(72) of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 2(47)
Under the Income Tax Act, 1961, Section 2(47) governs definition of transfer. Defines transfer in relation to capital assets, including sale, exchange, relinquishment, and compulsory acquisition.
The new code maps this to Section 2(72): the provision is retained and renumbered as Section 2(72) of the Income-tax Act, 2025, applying from 1st April 2026. Retained. Expanded to cover the 'transfer' of Virtual Digital Assets and smart contract executions.
On the ground, changes to Section 2(47) carry a High impact. Triggers capital gains tax liability.
Sec 2(47)
Provision Summary
Defines transfer in relation to capital assets, including sale, exchange, relinquishment, and compulsory acquisition.
Sec 2(72)
Provision Summary
Retained. Expanded to cover the 'transfer' of Virtual Digital Assets and smart contract executions.
Key Changes & Highlights
- Digital asset burn or exchange now explicitly mapped under 'transfer'.
Related Sections
Frequently Asked Questions
What does Section 2(47) of the Income Tax Act 1961 deal with?
Section 2(47) of the Income Tax Act, 1961 covers definition of transfer. Defines transfer in relation to capital assets, including sale, exchange, relinquishment, and compulsory acquisition.
Where does Section 2(47) of the ITA 1961 go under the Income-tax Act, 2025?
Section 2(47) of the Income Tax Act, 1961 maps to Section 2(72) of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Expanded to cover the 'transfer' of Virtual Digital Assets and smart contract executions.
Why does the change to Section 2(47) matter for taxpayers?
The transition impact for Section 2(47) is rated High. Triggers capital gains tax liability.
What are the key changes to Section 2(47) under the Income-tax Act, 2025?
Digital asset burn or exchange now explicitly mapped under 'transfer'. These points are specific to Section 2(47) (Definition of Transfer).
Disclaimer: This mapping of Section 2(47) (Definition of Transfer) to Section 2(72) of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 2(47) is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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