Section 45 → Section 60
Capital Gains - Basis of Charge
Quick Answer
Section 45 of the Income Tax Act, 1961 (Capital Gains - Basis of Charge) corresponds to Section 60 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 45
In the 1961 statute, Section 45 deals with capital gains - basis of charge. Any profits or gains arising from the transfer of a capital asset shall be chargeable to tax under the head Capital Gains.
From 1st April 2026, the same subject sits at Section 60 of the Income-tax Act, 2025 — retained and renumbered as Section 60 of the Income-tax Act, 2025. Expanded. Explicitly includes proceeds from high-value life insurance policies and specific virtual digital assets under the generic chargeability.
For Section 45, the practical impact is rated High. The foundation of investment taxation.
Sec 45
Provision Summary
Any profits or gains arising from the transfer of a capital asset shall be chargeable to tax under the head Capital Gains.
Sec 60
Provision Summary
Expanded. Explicitly includes proceeds from high-value life insurance policies and specific virtual digital assets under the generic chargeability.
Key Changes & Highlights
- Year of transfer vs year of receipt disputes minimized with new digital timestamping of asset transfers.
Related Sections
Related Articles from the Tax Academy
corporate compliance
Income-tax Act, 2025: Section 45(b)(8) & MSME Payments - A Guide for CFOs
Expert analysis on the shift from Sec 43B(h) to Sec 45(b)(8) of the Income-tax Act, 2025. Understand the permanent disallowance rule for MSME payments and its impact on working capital.
general transition
Agricultural Land Tax Exemption: 1961 Act vs Income-tax Act, 2025 Guide
A professional guide on the capital gains tax changes for agricultural land sales, transitioning from the Income Tax Act 1961 to the Income-tax Act, 2025. Learn about Section 2(14) and exemption status.
general transition
Income-tax Act, 2025 vs Income Tax Act 1961: A Complete Guide
Your expert guide to the new Income-tax Act, 2025. Understand the key changes, new section impacts, and compliance steps for a smooth transition from the Income Tax Act 1961.
Frequently Asked Questions
What is Section 45 of the Income Tax Act, 1961 about?
Section 45 of the Income Tax Act, 1961 covers capital gains - basis of charge. Any profits or gains arising from the transfer of a capital asset shall be chargeable to tax under the head Capital Gains.
Which section replaces Section 45 in the Income-tax Act, 2025?
Section 45 of the Income Tax Act, 1961 maps to Section 60 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Expanded. Explicitly includes proceeds from high-value life insurance policies and specific virtual digital assets under the generic chargeability.
What is the impact of the change to Section 45 under the new tax code?
The transition impact for Section 45 is rated High. The foundation of investment taxation.
What should I watch out for when Section 45 moves to the 2025 code?
Year of transfer vs year of receipt disputes minimized with new digital timestamping of asset transfers. These points are specific to Section 45 (Capital Gains - Basis of Charge).
Disclaimer: This mapping of Section 45 (Capital Gains - Basis of Charge) to Section 60 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 45 is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
Need professional help on Section 45?
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?