Income-tax Act, 1961 / Chapter XX-A / Historical provision

Section 269S of the Income-tax Act, 1961: Chapter Not to Extend to Jammu and Kashmir

Section 269S provided a geographical exclusion from the immovable-property acquisition framework formerly contained in Chapter XX-A. The provision is best read with Section 269RR, which ended the Chapter's application to transfers made after 30 September 1986.

Historical-law clarification: Section 269S refers to the former State of Jammu and Kashmir. It is not a present-day exemption from income tax or property registration requirements in Jammu and Kashmir. Chapter XX-A is not applicable to transfers made after 30 September 1986 by virtue of Section 269RR.

Text of Section 269S

269S. Chapter not to extend to State of Jammu and Kashmir.

The provisions of this Chapter shall not extend to the State of Jammu and Kashmir.

Meaning and scope of Section 269S

The expression "this Chapter" means Chapter XX-A of the Income-tax Act, 1961, which addressed acquisition of certain immovable properties in specified circumstances. Section 269S excluded the territory then known as the State of Jammu and Kashmir from that Chapter's operation. The exclusion concerned Chapter XX-A alone; it did not state that the entire Income-tax Act was inapplicable there.

The term "immovable property" and other expressions relevant to the Chapter were governed by the Chapter's definition provisions, particularly Section 269A. The acquisition mechanism and its conditions were dealt with in other sections, including Section 269C.

Why the 1986 cut-off matters

Section 269RR, inserted with effect from 1 October 1986, provides that Chapter XX-A does not apply to or in relation to a transfer of immovable property made after 30 September 1986. Accordingly, Section 269S has primarily historical significance when interpreting the geographical reach of that earlier acquisition regime.

Jammu and Kashmir: later constitutional and legal developments

The Jammu and Kashmir Reorganisation Act, 2019 reorganised the former State into the Union Territories of Jammu and Kashmir and Ladakh with effect from 31 October 2019. That later reorganisation does not revive Chapter XX-A for post-September 1986 property transfers. Current tax and property-transfer questions must be examined under the applicable present-day legislation and rules rather than relying on this historical exclusion.

  • Section 269R - interaction with acquisition under other laws.
  • Section 269RR - transfers made after 30 September 1986.
  • Section 269Q - historical exclusion for specified transfers to relatives.

Frequently asked questions

Did Section 269S exempt Jammu and Kashmir from the entire Income-tax Act?

No. Its wording was confined to Chapter XX-A, not the entire Act.

Does Chapter XX-A apply to property transferred today?

No. Section 269RR excludes transfers made after 30 September 1986 from Chapter XX-A.

Does the 2019 reorganisation make Section 269S operative for new transfers?

No. The reorganisation does not displace the cut-off established by Section 269RR.

Official legal resources

For authoritative consolidated legislation and amendments, consult the India Code legislative database, the Income Tax Department and the Gazette of India. Confirm the applicable statutory version for any historical transaction.

This article explains a historical statutory provision for general information. It is not a substitute for transaction-specific legal advice.