Income Tax Act, 2025  ·  Chapter III — Incomes Not Forming Part of Total Income  ·  Section 17

Section 17
17

IT Act 2025 Chapter III Effective 1 April 2026 Old: New provision
New Provision
Section 17, IT Act 2025
Replaces (IT Act 1961)
New provision
Chapter
Chapter III — Incomes Not Forming Part of Total Income
Effective From
1 April 2026
Statutory Text — Section 17

pital asset being property, where the The value taken capital gain arises from the transfer of such into account under property the value of which has been subject section 92(2)(m). to income-tax under section 92(2)(m). 18. Capital asset declared under the Income The fair market value Declaration Scheme, 2016, where the tax, of the asset taken into surcharge and penalty have been paid as per account for the purposes the provisions of such Scheme on the fair of the said Scheme. market value as on the date of the commencement of that Scheme. 19. Specified capital asset referred to in clause The stamp duty value (c) of the Explanation to section 10(37A) as on the last day of the of the Income-tax Act, 1961 (43 of 1961), second tax year after the which has been transferred after the expiry of end of the tax year in two years from the end of the tax year in which the possession of which the possession of such asset was the said specified capital handed over to the assessee. asset was handed over to the assessee. 20. Capital asset, being share in the project, in The amount deemed the form of land or building, or both, under as full value of section 67(14), not being a capital asset consideration under referred to in section 67(16). section 67(14). 21. Capital asset, being the asset held by a The fair market value trust or an institution in respect of which of the asset considered accreted income has been computed and tax for computation of paid thereon as per section 352. accreted income as on specified date as per section 352(2). 22. Capital asset referred to in section 26(2)(j). The fair market value for section 26(2)(j). 23. Capital asset, being an Electronic Gold The cost of gold for Receipt issued by a Vault Manager, which the person in whose became the property of the person as name Electronic Gold consideration of a transfer, as referred to in Receipt is issued. section 70(1)(y). 24. Capital asset being gold released against The cost of the an Electronic Gold Receipt, which became Electronic Gold Receipt the property of the person as consideration for such person. for a transfer as referred to in section 70(1)(y).

(2) For the purposes of the Table in sub-section (1), in respect of the entries against–– (a) serial number 1, “previous owner of the property” for any capital asset owned by an assessee, means the last previous owner of the capital asset who acquired it by a mode of acquisition other than that referred to in column B thereof; (b) serial numbers 11 and 12, “main portfolio”, “segregated portfolio” and “total portfolio” shall have the same meanings as respectively assigned to them in the Circular No. SEBI/HO/IMD/DF2/CIR/P/2018/160, dated the 28th December, 2018, issued by the Securities and Exchange Board of India; (c) serial numbers 14 and 15, “net worth” means the total of the paid-up share capital and general reserves as appearing in the books of account of the demerged company immediately before the demerger; (d) serial numbers 2, 14 and 15, the provisions as contained therein, shall, as far as may be, also apply in relation to business reorganisation of a co-operative bank as referred to in section 64.

Shahi & Co. — Our Understanding
This section deals with the special provision for computing capital gains where property is transferred and the consideration includes exchange of another asset.
Practical Note: Where a capital asset is exchanged for another asset rather than sold for cash, the fair market value of the asset received is treated as the sale consideration for computing capital gains.
Shahi & Co., Chartered Accountants
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Disclaimer: This is a reproduction of Section 17 of the Income Tax Act, 2025 (No. 30 of 2025) as published in the Official Gazette of India (CG-DL-E-22082025-265620) for informational and reference purposes only. Shahi & Co., Chartered Accountants makes no warranty as to completeness or accuracy. For the official authenticated text refer to egazette.gov.in or incometaxindia.gov.in. This does not constitute legal or tax advice.