Section 121 - Capital gains on conversion of stock-in-trade

Capital gains on conversion of stock-in-trade. Section 121 of the Income Tax Act 2025 sits in Chapter VI (Capital Gains). In force from 1 April 2026.

Key provisions

• *All assessees** - individuals, HUFs, firms, LLPs, companies, AOPs, and BOIs - who transfer a capital asset during the tax year.
• **Section 120** - immediately preceding provision in the same chapter.
• **Section 122** - immediately following provision in the same chapter.
• The full chapter spans Sections 108 to 124.
• Statutory text: published in the Income Tax Act 2025 by the Ministry of Law and Justice. Available at e-gazette.nic.in and incometaxindia.gov.in.
• Rules: corresponding rules are notified under the Income Tax Rules 2026 by CBDT.
• ThynkTax mirror: `/income-tax/sections/121`.
• API: `GET https://api.thynktax.com/v1/tax-law/sections/by-2025-ref/121` - JSON record with cross-references and tags.

Use via API

curl https://api.thynktax.com/v1/tax-law/sections/by-2025-ref/121

{
  "act_2025_ref": "121",
  "old_reference": "Section 121, Income Tax Act 1961",
  "title": "Section 121 - Capital gains on conversion of stock-in-trade",
  "category": "Section",
  "limit_or_rate": "-",
  "applicable_to": "-",
  "effective_from": "2026-04-01"
}