Section 47 → Section 62
Transactions not regarded as transfer
Quick Answer
Section 47 of the Income Tax Act, 1961 (Transactions not regarded as transfer) corresponds to Section 62 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 47
Under the Income Tax Act, 1961, Section 47 governs transactions not regarded as transfer. Lists transactions exempt from Capital Gains tax, such as gifts, inheritances, and corporate amalgamations.
Under the Income-tax Act, 2025 (effective 1st April 2026), Section 47 is retained and renumbered as Section 62 of the Income-tax Act, 2025. Retained but heavily updated. New exemptions added for strategic demergers of public sector units and sovereign wealth fund transfers.
The transition impact on Section 47 is assessed as High. Critical for corporate restructuring and family inheritances.
Sec 47
Provision Summary
Lists transactions exempt from Capital Gains tax, such as gifts, inheritances, and corporate amalgamations.
Sec 62
Provision Summary
Retained but heavily updated. New exemptions added for strategic demergers of public sector units and sovereign wealth fund transfers.
Key Changes & Highlights
- Gift of shares to non-relatives structurally restricted to prevent tax evasion.
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Frequently Asked Questions
Which subject does Section 47 of the 1961 Act cover?
Section 47 of the Income Tax Act, 1961 covers transactions not regarded as transfer. Lists transactions exempt from Capital Gains tax, such as gifts, inheritances, and corporate amalgamations.
What is the new section number for Section 47 under the Income-tax Act, 2025?
Section 47 of the Income Tax Act, 1961 maps to Section 62 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained but heavily updated. New exemptions added for strategic demergers of public sector units and sovereign wealth fund transfers.
How does the Income-tax Act, 2025 affect Section 47 in practice?
The transition impact for Section 47 is rated High. Critical for corporate restructuring and family inheritances.
What is new about Section 47 under the Income-tax Act, 2025?
Gift of shares to non-relatives structurally restricted to prevent tax evasion. These points are specific to Section 47 (Transactions not regarded as transfer).
Disclaimer: This mapping of Section 47 (Transactions not regarded as transfer) to Section 62 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 47 is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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