Income-tax Act, 1961 / Chapter XX-A
Section 269RR: Chapter XX-A Not Applicable to Property Transfers After 30 September 1986
Section 269RR fixes the historical cut-off date for the application of the former immovable-property acquisition regime under Chapter XX-A of the Income-tax Act, 1961.
Text of Section 269RR of the Income-tax Act, 1961
The provisions of this Chapter shall not apply to or in relation to the transfer of any immovable property made after the 30th day of September, 1986.
Legislative note: Section 269RR was inserted by the Finance Act, 1986 (Act 23 of 1986), section 33, with effect from 1 October 1986. The numeral appearing before the provision in some historical reproductions is a footnote marker, not part of the statutory wording.
Meaning and legal effect of Section 269RR
Section 269RR is a temporal exclusion provision. Its words, "the provisions of this Chapter shall not apply", mean that the special acquisition machinery in Chapter XX-A is not applicable to an immovable-property transfer made after 30 September 1986.
Chapter XX-A formerly provided a special procedure concerning acquisition of certain immovable properties in specified circumstances involving apparent consideration and fair market value. Section 269RR draws the dividing line for transfers covered by that historical framework.
The section refers to the date on which the transfer was made, not merely the date on which a later question, assessment, or dispute is raised. The legal character and timing of a particular historical transaction may require examination of its documents and applicable law.
Which property transfers are affected?
| Transfer date | Effect under Section 269RR |
|---|---|
| On or before 30 September 1986 | Section 269RR does not itself exclude the transaction from Chapter XX-A; other applicable conditions and provisions must be considered. |
| After 30 September 1986 (from 1 October 1986) | Chapter XX-A does not apply to or in relation to the transfer by reason of Section 269RR. |
This is a Chapter XX-A cut-off only. It is not a blanket exemption from income tax, stamp duty, registration requirements, or other property laws.
Does Section 269RR apply to property sales today?
For an immovable-property transfer made today, Section 269RR means the former Chapter XX-A acquisition procedure does not apply. However, a modern property transaction may still be governed by other provisions of income-tax law and applicable registration, stamp-duty, and property legislation.
In particular, Chapter XX-C introduced a separate historical pre-emptive purchase framework and should not be conflated with Chapter XX-A. Likewise, provisions relating to capital gains, tax deduction at source, or reporting of high-value transactions must be examined independently under the law applicable to the transaction and relevant tax year.
The Income-tax Act, 2025 also requires attention for tax years to which it applies; the historical wording of Section 269RR of the 1961 Act is presented here to explain Chapter XX-A and its cut-off, not to suggest that the 1961 Act applies unchanged to every current tax year.
Official legal sources and further reading
For authoritative legislation and applicable amendments, consult the India Code legislative database, the Income Tax Department, and the Income Tax e-Filing portal. Verify the statutory text and commencement rules for the relevant historical or current tax period.
Frequently asked questions
What is the cut-off date under Section 269RR?
The cut-off is 30 September 1986. Chapter XX-A does not apply to immovable-property transfers made after that date.
When did Section 269RR take effect?
It was inserted with effect from 1 October 1986 by the Finance Act, 1986.
Does the provision exempt a property transfer from all taxes?
No. It excludes the application of Chapter XX-A to post-cut-off transfers; other applicable laws and tax obligations remain separate questions.