Section 50 → Section 65
Special provision for computation of capital gains in case of depreciable assets
Quick Answer
Section 50 of the Income Tax Act, 1961 (Special provision for computation of capital gains in case of depreciable assets) corresponds to Section 65 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 50
In the 1961 statute, Section 50 deals with special provision for computation of capital gains in case of depreciable assets. Capital gains on depreciable assets are always short-term. Gain arises only if block ceases to exist or sale value exceeds block value.
From 1st April 2026, the same subject sits at Section 65 of the Income-tax Act, 2025 — retained and renumbered as Section 65 of the Income-tax Act, 2025. Retained. Calculation seamlessly integrates with the business depreciation schedules.
For Section 50, the practical impact is rated Medium. Prevents businesses from claiming long-term benefits on regular machinery.
Sec 50
Provision Summary
Capital gains on depreciable assets are always short-term. Gain arises only if block ceases to exist or sale value exceeds block value.
Sec 65
Provision Summary
Retained. Calculation seamlessly integrates with the business depreciation schedules.
Key Changes & Highlights
- No major changes. Aligned with Section 32 modifications.
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Frequently Asked Questions
What is Section 50 of the Income Tax Act, 1961 about?
Section 50 of the Income Tax Act, 1961 covers special provision for computation of capital gains in case of depreciable assets. Capital gains on depreciable assets are always short-term. Gain arises only if block ceases to exist or sale value exceeds block value.
Which section replaces Section 50 in the Income-tax Act, 2025?
Section 50 of the Income Tax Act, 1961 maps to Section 65 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Calculation seamlessly integrates with the business depreciation schedules.
What is the impact of the change to Section 50 under the new tax code?
The transition impact for Section 50 is rated Medium. Prevents businesses from claiming long-term benefits on regular machinery.
Disclaimer: This mapping of Section 50 (Special provision for computation of capital gains in case of depreciable assets) to Section 65 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 50 is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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