Income Tax Act 2025 Section Mapping
Key Takeaways
- The Income Tax Act 2025 replaced the Income Tax Act 1961 with effect from April 1, 2026 for AY 2026-27 onwards.
- The new Act consolidates roughly 819 sections and 5,500+ sub-sections of the old Act into about 536 simpler sections with a single chapter for each compliance topic.
- The terms "previous year" and "assessment year" are replaced by a single concept of "tax year" (the year in which income is earned and taxed).
- Section 393 in the 2025 Act is the consolidated TDS chapter that absorbs the old Sections 192 to 196D.
- Section 202 in the 2025 Act corresponds to the old Section 115BAC new tax regime, now the default regime for individuals, HUFs, AOPs, BOIs, and AJPs.
- Quarterly TDS returns from Q1 FY 2026-27 onward must reference new section numbers; old section codes will be rejected by the CPC.
The Income Tax Act 2025 is now in force. From April 1, 2026, every income-tax computation, TDS deduction, return form, and demand notice is issued under the new Act. For most taxpayers the rate, slab, and deduction values have not changed. What has changed is the section number under which the rule lives, the chapter where it sits, and the language used to describe it.
This guide is the practical reference for the sections most businesses, professionals, and finance teams use day to day. It pairs the old 1961 section with its corresponding 2025 section and a one-line description of what the section does. For exact section numbers in less common provisions, always confirm against the CBDT concordance table on incometax.gov.in.
Looking for expert help with Income Tax Act 2025 section mapping reference for AY 2026-27? The team at Tax Garden helps Indian SMEs stay compliant end-to-end: filings, notices, and advisory, all in one place.
Why the Renumbering Matters
The 1961 Act grew over six decades through hundreds of amendments. Sections were inserted with letters and decimals (Section 80CCD(1B), Section 194-IA, Section 115BAC, Section 271AAB) and the structure was no longer easy to read. The 2025 Act re-stitches the entire framework so that:
- Each chapter contains all related rules (every TDS rule lives in the same chapter, every deduction lives in another).
- Sub-sections are removed where possible. Long sub-section trees become standalone sections.
- "Previous year" (year of earning) and "assessment year" (year of taxation) collapse into a single tax year.
- "Notwithstanding anything" and double-negative drafting is replaced by direct language.
The rates, slabs, thresholds, and reliefs are the same as those notified by the Finance Act 2026. The new Act is structurally simpler, not substantively different.
For the broader picture of what changed, see the Income Tax Act 1961 vs 2025 comparison and the new Income Tax Act 2025 business impact guide.
Tax Year Replaces Previous Year and Assessment Year
This is the single biggest terminology change.
| Old Act (1961) | New Act (2025) |
|---|---|
| Previous Year (the year in which income is earned, e.g. FY 2025-26) | Tax Year (the same period; the year of earning) |
| Assessment Year (the year in which the income of the previous year is assessed, e.g. AY 2026-27) | Concept removed for most provisions; the return is filed for the relevant tax year |
| Sections referencing "income of the previous year is chargeable in the assessment year" | Sections now read "income of the tax year is chargeable" |
Filing forms, ITR utilities, and the e-filing portal will continue to display the AY label for AY 2026-27 because it identifies the filing window. Internally, the Act treats it as the tax year FY 2025-26.
Salary, Employment, and Pension
| Old Section | New Section (Income Tax Act 2025) | What it does |
|---|---|---|
| 15 | Corresponding new section in Chapter on Salary | Income chargeable as salary |
| 16(ia) | Corresponding new section | Standard deduction (Rs 75,000 under the new regime, Rs 50,000 old regime) |
| 16(ii) | Corresponding new section | Entertainment allowance (government employees only) |
| 16(iii) | Corresponding new section | Professional tax deduction |
| 17(2) | Corresponding new section | Perquisites: rent-free accommodation, ESOPs, employer-provided vehicle |
| 89(1) | Corresponding new section | Relief on salary arrears (Form 10E filing required) |
| 192 | Section 393 (consolidated TDS chapter) | TDS on salary at the average tax rate |
| 192A | Section 393 (consolidated TDS chapter) | TDS on premature EPF withdrawal at 10% |
For salary-arrears relief, see the Section 89 relief and Form 10E guide. For perquisites and HRA, see the HRA exemption Section 10(13A) guide.
House Property and Home Loan Interest
| Old Section | New Section (Income Tax Act 2025) | What it does |
|---|---|---|
| 22 | Corresponding new section in Chapter on House Property | Income from house property is chargeable on the annual value |
| 23 | Corresponding new section | Determination of annual value (let-out, deemed let-out, self-occupied) |
| 24(a) | Corresponding new section | Standard deduction of 30% of net annual value |
| 24(b) | Corresponding new section | Home loan interest deduction up to Rs 2 lakh (self-occupied), unlimited (let-out) |
| 25A | Corresponding new section | Recovery of unrealised rent treated as income |
The home loan interest deduction continues to apply only under the old tax regime. Under the new regime (the default after April 2026), Section 24(b) interest on self-occupied house property cannot be claimed. See the Section 24 home loan interest deduction guide.
Business and Professional Income
| Old Section | New Section (Income Tax Act 2025) | What it does |
|---|---|---|
| 28 | Corresponding new section in Chapter on Profits and Gains of Business or Profession | Income chargeable as business or profession |
| 30, 31, 32 | Corresponding new sections | Rent, repairs, depreciation on business assets |
| 35 | Corresponding new section | Scientific research expenditure |
| 36(1)(va) | Corresponding new section | Employee contribution to PF/ESI: deduction allowed only if deposited within statutory due date |
| 37 | Corresponding new section | General deduction for any business expense not specifically disallowed |
| 40(a)(ia) | Corresponding new section | Disallowance of 30% of expenditure where TDS not deducted or not paid |
| 40A(3) | Corresponding new section | Cash payments above Rs 10,000 per day per person disallowed |
| 43B | Corresponding new section | Statutory liabilities (GST, EPF, ESI, gratuity) deductible only on actual payment |
| 43B(h) | Corresponding new section | MSME payment delays beyond 45 days disallowed in the same tax year |
| 44AA | Corresponding new section | Maintenance of books of account (turnover/income thresholds) |
| 44AB | Corresponding new section | Tax audit thresholds (Rs 1 crore business / Rs 10 crore digital / Rs 50 lakh profession) |
| 44AD | Corresponding new section | Presumptive taxation for small business (8% / 6% if digital) |
| 44ADA | Corresponding new section | Presumptive taxation for professionals (50% of receipts) |
| 44AE | Corresponding new section | Presumptive taxation for goods carriage operators |
For tax audit and Form 3CD reporting, see the Section 44AB guide. For presumptive taxation, see the Section 44AD small business guide and the Section 44ADA professionals guide. For MSME payment compliance, see the Section 43B(h) MSME guide.
Capital Gains
| Old Section | New Section (Income Tax Act 2025) | What it does |
|---|---|---|
| 45 | Corresponding new section in Chapter on Capital Gains | Charge of tax on capital gains |
| 47 | Corresponding new section | Transactions not regarded as transfer (e.g. gift, will, partition) |
| 48 | Corresponding new section | Mode of computation, indexation rules |
| 49 | Corresponding new section | Cost of acquisition in special cases (gift, inheritance) |
| 54 | Corresponding new section | Exemption on sale of residential house if reinvested |
| 54EC | Corresponding new section | Exemption via investment in NHAI / REC bonds (capped at Rs 50 lakh) |
| 54F | Corresponding new section | Exemption on sale of any long-term asset if reinvested in residential house |
| 111A | Corresponding new section | STCG on listed equity / equity MF at 20% (revised from 15% by Finance Act 2024) |
| 112 | Corresponding new section | LTCG on assets other than listed equity at 12.5% (with limited indexation for resident individuals on land/building) |
| 112A | Corresponding new section | LTCG on listed equity / equity MF at 12.5% with Rs 1.25 lakh annual exemption |
For capital gains exemptions, see the Section 54, 54F, 54EC capital gains exemption guide.
Chapter VI-A Deductions (Sections 80C to 80U)
| Old Section | New Section (Income Tax Act 2025) | What it does |
|---|---|---|
| 80C | Corresponding new section in Chapter on Deductions | Investment-based deductions up to Rs 1.5 lakh (PPF, ELSS, NSC, life insurance, school fees, principal home loan) |
| 80CCC | Corresponding new section | Pension fund contribution (within combined Rs 1.5 lakh cap) |
| 80CCD(1) | Corresponding new section | NPS Tier I employee contribution (within Rs 1.5 lakh cap) |
| 80CCD(1B) | Corresponding new section | Additional NPS deduction up to Rs 50,000 (outside the Rs 1.5 lakh cap) |
| 80CCD(2) | Corresponding new section | Employer NPS contribution (no individual cap, separate from 80C) |
| 80D | Corresponding new section | Health insurance premium up to Rs 25,000 (Rs 50,000 senior citizens) |
| 80E | Corresponding new section | Education loan interest (no cap, 8 years) |
| 80EEA | Corresponding new section | Affordable housing additional interest (Rs 1.5 lakh, sunset cases only) |
| 80G | Corresponding new section | Donations to approved charitable institutions |
| 80GG | Corresponding new section | Rent paid where HRA is not received |
| 80TTA | Corresponding new section | Savings account interest deduction up to Rs 10,000 |
| 80TTB | Corresponding new section | Senior citizen interest deduction up to Rs 50,000 (replaces 80TTA for that group) |
| 80U | Corresponding new section | Disability deduction (Rs 75,000 / Rs 1,25,000 for severe disability) |
These deductions remain available only under the old tax regime. Under the new regime, the only deductions allowed are the standard deduction of Rs 75,000 and the employer NPS contribution under 80CCD(2). For the full 80C list, see the Section 80C deductions list AY 2026-27 guide, and for 80D see the Section 80D health insurance deduction guide.
Section 87A Rebate and the New Tax Regime
| Old Section | New Section (Income Tax Act 2025) | What it does |
|---|---|---|
| 87A | Corresponding new section | Rebate up to Rs 60,000 (new regime) on income up to Rs 12 lakh; Rs 12,500 (old regime) on income up to Rs 5 lakh |
| 115BAC | Section 202 | Optional new tax regime, now the default with revised slabs from Rs 0 to Rs 24 lakh |
For the rebate detail, see the Section 87A rebate AY 2026-27 guide.
TDS and TCS (Now Consolidated Under Section 393)
The 2025 Act gathers every TDS rule under a single Section 393. Sub-sections inside Section 393 carry the rate, threshold, and applicability for each payment type.
| Old Section | Inside Section 393 (Income Tax Act 2025) | Nature of Payment | Rate |
|---|---|---|---|
| 192 | Section 393(1) | Salary TDS | As per slab |
| 193 | Section 393 sub-clause | Interest on securities | 10% |
| 194 | Section 393 sub-clause | Dividend | 10% |
| 194A | Section 393 sub-clause | Interest other than securities | 10% |
| 194C | Section 393 sub-clause | Contractor payments | 1% individual / 2% others |
| 194H | Section 393 sub-clause | Commission and brokerage | 5% |
| 194-I(a) | Section 393 sub-clause | Rent on plant and machinery | 2% |
| 194-I(b) | Section 393 sub-clause | Rent on land and building | 10% |
| 194-IA | Section 393 sub-clause | Property purchase above Rs 50 lakh | 1% |
| 194-IB | Section 393 sub-clause | Rent above Rs 50,000/month by individual | 5% |
| 194J | Section 393 sub-clause | Professional and technical fees | 10% / 2% |
| 194Q | Section 393 sub-clause | Purchase of goods above Rs 50 lakh | 0.1% |
| 206C | Section 393 sub-clause (TCS) | Sale of specified goods | 1% to 5% |
| 206C(1H) | Section 393 sub-clause (TCS) | Sale of goods above Rs 50 lakh | 0.1% |
| 206C(1G) | Section 393 sub-clause (TCS) | Foreign remittance under LRS | 5% to 20% |
For section-by-section TDS migration steps, see the dedicated TDS and TCS section mapping guide. For the AY 2026-27 rate chart, see the TDS rate chart 2026 to 2027.
Returns, Assessments, and Refunds
| Old Section | New Section (Income Tax Act 2025) | What it does |
|---|---|---|
| 139(1) | Corresponding new section | Original return filing due dates by category |
| 139(4) | Corresponding new section | Belated return up to December 31 of the AY |
| 139(5) | Corresponding new section | Revised return up to December 31 of the AY |
| 139(8A) | Corresponding new section | Updated return (ITR-U) within 48 months |
| 142(1) | Corresponding new section | Notice for inquiry before assessment |
| 143(1) | Corresponding new section | Intimation after CPC processing |
| 143(2) | Corresponding new section | Notice for scrutiny assessment |
| 148 | Corresponding new section | Notice for reassessment of escaped income |
| 234A | Corresponding new section | Interest at 1% per month for late filing |
| 234B | Corresponding new section | Interest at 1% per month for short payment of advance tax |
| 234C | Corresponding new section | Interest for deferment of advance tax instalments |
| 234F | Corresponding new section | Late filing fee Rs 1,000 / Rs 5,000 |
| 244A | Corresponding new section | Interest on income tax refund |
For the AY 2026-27 return deadlines, see the ITR filing last date AY 2026-27 guide.
What This Means for Your Compliance Stack
Five practical items if you have not migrated yet:
- TDS challans and returns: All Q1 FY 2026-27 TDS deposits and Form 26Q must reference the new sub-sections of Section 393. Old codes such as 194C and 194J will be rejected.
- Employee tax declarations: Form 12BB and salary tax computation worksheets your payroll team uses must be updated. Section 80C, 80D, 24(b), and 10(13A) field labels typically remain unchanged on declarations because they refer to the deduction name, but internal tax computation engines must use the new section numbers.
- Demand and refund handling: Notices issued from April 2026 will quote the new section. A reassessment notice that reads "Section 148" without further qualification may now refer to the 2025 Act. Always check the date of issue and the Act referenced in the heading.
- Statutory audit and tax audit reports: Form 3CD clauses (clause numbers also change) must reflect the new Act. Confirm with your auditor that they are using the AY 2026-27 utility, not a carry-over from previous years.
- Internal templates and SOPs: Engagement letters, advance tax notes, salary advisories, and disclosure templates that quote section numbers should be reviewed once before the next filing cycle. A search-and-replace exercise is rarely accurate; the section names sometimes change too.
Tax Garden's tax compliance services handle the migration: TDS challan codes, employee tax declarations, software configuration in Tally and Zoho, and the audit walkthrough are all done with the new Act references in place.
Looking for expert help with Income Tax Act 2025 migration assistance for businesses and professionals? The team at Tax Garden helps Indian SMEs stay compliant end-to-end: filings, notices, and advisory, all in one place.
Frequently Asked Questions
When does the Income Tax Act 2025 come into force?
April 1, 2026. From this date, every income earned, every TDS deduction, and every assessment is governed by the 2025 Act. Filings for AY 2025-26 (the year ending March 31, 2026) and earlier continue to be made under the 1961 Act.
Are the tax rates and slabs different under the 2025 Act?
No. The rates, slabs, and rebate thresholds for AY 2026-27 are those notified by the Finance Act 2026, and they apply identically under the new Act. The Section 87A rebate is up to Rs 60,000 for income up to Rs 12 lakh under the new regime, and Rs 12,500 for income up to Rs 5 lakh under the old regime. Section 80C, 80D, and other deduction limits are unchanged.
What is the new Section 393?
Section 393 of the Income Tax Act 2025 is the consolidated TDS chapter. It absorbs the old Sections 192 to 196D and groups every TDS rule under a single section with sub-clauses for each payment type. TDS on salary, contractor payments, rent, professional fees, dividend, interest, and property purchase is now found inside Section 393 instead of separate sections.
Does 'previous year' still exist?
No, the 2025 Act uses the term 'tax year' to mean the same thing the 1961 Act called 'previous year'. The earlier two-step terminology ('previous year' for earning, 'assessment year' for filing) is collapsed into a single 'tax year' concept. The e-filing portal still labels the filing window by AY (e.g. AY 2026-27) for ease of reference, but the underlying Act provisions use 'tax year'.
Will my old TDS challan and return reference work?
No. From Q1 FY 2026-27 (April to June 2026) onwards, TDS challans and Form 26Q returns must use the new Section 393 sub-section codes. Old codes are rejected by the CPC, deductees do not see TDS credit in Form 26AS, and you may face penalties for incorrect filing. Update your accounting software and TDS module before the first deposit.
Where do I get the official old-to-new section mapping?
CBDT has published a concordance table on incometax.gov.in alongside the bare Income Tax Act 2025. The mapping is also embedded in the e-filing portal's section finder utility. Always confirm the exact new section number against the CBDT notification before quoting it in a contract, opinion, or filing, especially for less common provisions outside the common TDS, deduction, and capital gains heads.
Has Section 115BAC been renumbered?
Yes. Section 115BAC (the optional new tax regime introduced in 2020 and made the default from FY 2024-25) corresponds to Section 202 in the Income Tax Act 2025. The default-regime status, the slab structure for FY 2025-26 onwards, and the surcharge rates are unchanged.
Do all my deductions still apply under the new Act?
Yes, the deductions exist, but only under the old tax regime. Under the new regime (Section 202 of the 2025 Act, the default), the only deductions allowed are the standard deduction of Rs 75,000 (salaried and pensioners) and the employer NPS contribution under the equivalent of Section 80CCD(2). All other Chapter VI-A deductions including Section 80C, 80D, 80E, 80G, 24(b) interest on self-occupied home loan, and HRA exemption are not available under the new regime.
Sources
This guide is verified against the Income Tax Act 2025 as enacted, the Finance Act 2026, the CBDT concordance table published on incometax.gov.in, and the practical mapping referenced in the TDS and TCS section changes guide. Cross-checked against ClearTax, Tax2win, BajajFinserv, and KDK Software's section-finder coverage of the 2025 Act as of May 2026. For exact new section numbers in less common provisions (international tax, transfer pricing, search and seizure, settlement commission), always confirm against the official CBDT notification before quoting in a contract or filing.
