Section 61 → Section 81
Revocable transfer of assets
Quick Answer
Section 61 of the Income Tax Act, 1961 (Revocable transfer of assets) corresponds to Section 81 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 61
The starting point is Section 61 of the Income Tax Act, 1961 — revocable transfer of assets. Income arising from a revocable transfer of an asset is clubbed in the hands of the transferor.
The new code maps this to Section 81: the provision is retained and renumbered as Section 81 of the Income-tax Act, 2025, applying from 1st April 2026. Retained to ensure trusts and settlements cannot be used as temporary tax shelters.
On the ground, changes to Section 61 carry a Low impact. Targeted at complex wealth structuring.
Sec 61
Provision Summary
Income arising from a revocable transfer of an asset is clubbed in the hands of the transferor.
Sec 81
Provision Summary
Retained to ensure trusts and settlements cannot be used as temporary tax shelters.
Key Changes & Highlights
- No change.
Related Sections
Frequently Asked Questions
What does Section 61 of the Income Tax Act 1961 deal with?
Section 61 of the Income Tax Act, 1961 covers revocable transfer of assets. Income arising from a revocable transfer of an asset is clubbed in the hands of the transferor.
Where does Section 61 of the ITA 1961 go under the Income-tax Act, 2025?
Section 61 of the Income Tax Act, 1961 maps to Section 81 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained to ensure trusts and settlements cannot be used as temporary tax shelters.
Why does the change to Section 61 matter for taxpayers?
The transition impact for Section 61 is rated Low. Targeted at complex wealth structuring.
Disclaimer: This mapping of Section 61 (Revocable transfer of assets) to Section 81 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 61 is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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