Section 48 → Section 63
Mode of Computation of Capital Gains
Quick Answer
Section 48 of the Income Tax Act, 1961 (Mode of Computation of Capital Gains) corresponds to Section 63 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 48
Under the Income Tax Act, 1961, Section 48 governs mode of computation of capital gains. Defines calculation: Full Value of Consideration minus Cost of Acquisition (indexed) and transfer expenses.
The new code maps this to Section 63: the provision is retained and renumbered as Section 63 of the Income-tax Act, 2025, applying from 1st April 2026. Retained. Indexation rules simplified. The new system auto-fetches the Cost Inflation Index (CII) based on the asset purchase year.
On the ground, changes to Section 48 carry a Very High impact. Governs the exact tax payable on real estate and stock market profits.
Sec 48
Provision Summary
Defines calculation: Full Value of Consideration minus Cost of Acquisition (indexed) and transfer expenses.
Sec 63
Provision Summary
Retained. Indexation rules simplified. The new system auto-fetches the Cost Inflation Index (CII) based on the asset purchase year.
Key Changes & Highlights
- Grandfathering clauses for shares bought before 2018 hardcoded into the portal's logic.
Related Sections
Related Articles from the Tax Academy
nri taxation
Income-tax Act, 2025: NRI Property Indexation Benefit Removed - Tax Impact Analysis
A detailed guide for NRIs on the removal of indexation benefits for property under the Income-tax Act, 2025. Understand the tax impact with case studies.
nri taxation
NRI LTCG Tax: Guide to 1961 Act vs. Income-tax Act, 2025 Changes
Expert analysis of the new Income-tax Act, 2025 for NRIs. Understand the shift from LTCG with indexation to a new flat tax regime and its impact on your real estate investments.
nri taxation
Income-tax Act, 2025 vs Old Tax Act: NRI Commercial Property Gain Rules Change
A complete guide for NRIs on the new Income-tax Act, 2025. Understand the impact on capital gains from commercial property sales, Section 54F, and repatriation.
Frequently Asked Questions
What does Section 48 of the Income Tax Act 1961 deal with?
Section 48 of the Income Tax Act, 1961 covers mode of computation of capital gains. Defines calculation: Full Value of Consideration minus Cost of Acquisition (indexed) and transfer expenses.
Where does Section 48 of the ITA 1961 go under the Income-tax Act, 2025?
Section 48 of the Income Tax Act, 1961 maps to Section 63 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Indexation rules simplified. The new system auto-fetches the Cost Inflation Index (CII) based on the asset purchase year.
Why does the change to Section 48 matter for taxpayers?
The transition impact for Section 48 is rated Very High. Governs the exact tax payable on real estate and stock market profits.
What are the key changes to Section 48 under the Income-tax Act, 2025?
Grandfathering clauses for shares bought before 2018 hardcoded into the portal's logic. These points are specific to Section 48 (Mode of Computation of Capital Gains).
Disclaimer: This mapping of Section 48 (Mode of Computation of Capital Gains) to Section 63 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 48 is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
Need professional help on Section 48?
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?