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ITA 1961 → ITA 2025Clubbing of Income

Section 60 Section 80

Transfer of income where there is no transfer of assets

RetainedMedium - Fundamental anti-avoidance rule.

Quick Answer

Section 60 of the Income Tax Act, 1961 (Transfer of income where there is no transfer of assets) corresponds to Section 80 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.

What changed for Section 60

Section 60 of the 1961 Act sets out the rules on transfer of income where there is no transfer of assets. If a person transfers the income from an asset without transferring the ownership of the asset, the income is still clubbed in the hands of the transferor.

From 1st April 2026, the same subject sits at Section 80 of the Income-tax Act, 2025 — retained and renumbered as Section 80 of the Income-tax Act, 2025. Retained verbatim to prevent basic tax avoidance through income assignment.

For Section 60, the practical impact is rated Medium. Fundamental anti-avoidance rule.

Old Law (ITA 1961)Ch: V

Sec 60

Provision Summary

If a person transfers the income from an asset without transferring the ownership of the asset, the income is still clubbed in the hands of the transferor.

New Law (ITA 2025)Ch: IX

Sec 80

Provision Summary

Retained verbatim to prevent basic tax avoidance through income assignment.

Key Changes & Highlights

  • No change.

Frequently Asked Questions

What is Section 60 of the Income Tax Act, 1961 about?

Section 60 of the Income Tax Act, 1961 covers transfer of income where there is no transfer of assets. If a person transfers the income from an asset without transferring the ownership of the asset, the income is still clubbed in the hands of the transferor.

Which section replaces Section 60 in the Income-tax Act, 2025?

Section 60 of the Income Tax Act, 1961 maps to Section 80 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained verbatim to prevent basic tax avoidance through income assignment.

What is the impact of the change to Section 60 under the new tax code?

The transition impact for Section 60 is rated Medium. Fundamental anti-avoidance rule.

Disclaimer: This mapping of Section 60 (Transfer of income where there is no transfer of assets) to Section 80 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 60 is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.

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