New Provision
Section 80, IT Act 2025
Replaces (IT Act 1961)
50D
Chapter
Chapter IV — Computation of Total Income
Effective From
1 April 2026
Statutory Text — Section 80
If the consideration received or accruing from the transfer of a capital asset is not ascertainable or cannot be determined, its fair market value on the date of transfer shall be deemed to be the full value of consideration received or accruing as a result of such transfer for the purposes of computing income under the head “Capital gains”.
Shahi & Co. — Our Understanding
Section 80 addresses situations where a capital asset is transferred without adequate consideration or for no consideration — ensuring the fair market value is treated as the full value of consideration for capital gains computation.
Practical Note: This prevents tax avoidance through undervaluation of transfers. If you are transferring shares or property to a related party or at below-market prices, the FMV will be deemed to be the sale price regardless of the actual consideration received.
Shahi & Co., Chartered Accountants
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Disclaimer: This is a reproduction of Section 80 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.