Key Takeaways on Income Tax Act 2025 Section Numbers
- The Income Tax Act, 2025 replaced the Income Tax Act, 1961, effective from April 1, 2026, introducing restructured and renumbered framework
- Old Act had roughly 819 sections and 5,500+ sub-sections, consolidated into about 536 simpler, sequentially numbered sections across 23 chapters
- Tax slabs, deduction limits, and rebate amounts continue exactly as before—only section numbers and language changed
- New section numbers apply from Tax Year 2026-27 onwards (returns filed in July 2027). Returns for FY 2025-26 still use old 1961 Act numbers
- TDS provisions consolidated under Sections 392, 393, and 394, replacing over 20 scattered TDS sections
If you have filed taxes in India before, you probably know a few section numbers by heart: Section 80C for tax-saving investments, Section 24(b) for home loan interest, Section 194J for professional fees TDS. From 1 April 2026, all of that muscle memory needs an update.
The Income Tax Act, 2025 has replaced the Income Tax Act, 1961, and while tax rules themselves haven't changed much, almost every section number has been renumbered. This guide provides complete mapping of old section numbers to new equivalents—your essential reference page for transition.
Bookmark this page—you will need it.
Why the Income Tax Act Was Renumbered
Old Income Tax Act, 1961 was amended thousands of times over more than six decades. Sections got squeezed in with letters and decimals (think 80CCD(1B), 194-IA, 115BAC) until structure became hard to navigate. Single provision often required jumping across five cross-referenced sections just to understand one rule.
Income Tax Act 2025 was built to fix exactly that. It consolidates roughly 819 sections and 5,500+ sub-sections of old Act into about 536 simpler, sequentially numbered sections across 23 chapters, grouping related provisions (like all TDS rules) under single chapter instead of scattering them everywhere.
Important: This is structural and drafting reform, not tax reform. Tax slabs, deduction limits, and rebate amounts continue exactly as notified under Finance Act.
When the New Act Applies
This is the part that trips people up the most:
| Timeline | Applicable Act |
|---|
| FY 2025-26 (AY 2026-27) — returns filed in July 2026 | Old 1961 Act — use old section numbers |
| TY 2026-27 onwards — returns filed in July 2027 onwards | New 2025 Act — use new section numbers |
Also: Any pending assessments, appeals, or notices relating to periods before 1 April 2026 continue under 1961 Act. New Act does not apply retrospectively.
Another Big Change: "Tax Year" Replaces "Previous Year" and "Assessment Year"
For decades, Indian taxpayers juggled two overlapping concepts:
- Previous Year (PY): the year in which income is earned
- Assessment Year (AY): following year in which that income is taxed
2025 Act scraps this two-step system entirely and introduces single, simpler idea: Tax Year, 12-month period from 1 April to 31 March in which income is both earned and reported. No more explaining to confused clients why "AY 2026-27" refers to income earned in "FY 2025-26."
Complete Old vs New Section Mapping Table
Ready-reference table of most commonly used sections, mapped from 1961 Act to 2025 Act. New Act is logically sequenced from Section 1 to 536.
Chapter I – Preliminary
| Provision | Old Section (1961 Act) | New Section (2025 Act) |
|---|
| Short title, extent and commencement | Section 1 | Section 1 |
| Definitions | Section 2 | Section 2 |
| Tax year (replaces FY/AY) | Section 3 | Section 3 |
Chapter II – Basis of Charge
| Provision | Old Section (1961 Act) | New Section (2025 Act) |
|---|
| Charge of income tax | Section 4 | Section 4 |
| Scope of total income | Section 5 | Section 5 |
| Residential status | Section 6 | Section 6 |
| Income deemed to be received | Section 7 | Section 7 |
| Income deemed to accrue/arise in India | Section 9 | Section 9 (Read with Schedule I) |
| Provision | Old Section (1961 Act) | New Section (2025 Act) |
|---|
| Incomes not included in total income (HRA, gratuity, etc.) | Section 10 | Section 11 (Read with Schedules II to VII) |
Heads of Income (Chapter IV)
| Provision | Old Section (1961 Act) | New Section (2025 Act) |
|---|
| Heads of income | Section 14 | Sections 13-14 |
| Income not forming part of total income (expenditure) | Section 14A | Section 14 |
Salaries (Sections 15–19)
| Provision | Old Section (1961 Act) | New Section (2025 Act) |
|---|
| Income from salary | Section 15 | Section 15 |
| Salary, perquisite, profits in lieu of salary (definitions) | Section 17 | Section 16 |
| Perquisites | Section 17 | Section 17 |
| Profits in lieu of salary | Section 17 | Section 18 |
| Deductions from salaries (standard deduction, etc.) | Sections 10(10), 10(10A), 10(10AA), 10(10B), 10(10C), 16 | Section 19 |
Income from House Property (Sections 22–27)
| Provision | Old Section (1961 Act) | New Section (2025 Act) |
|---|
| Income from house property | Section 22 | Section 20 |
| Determination of annual value | Sections 23, 27 | Section 21 |
| Deductions from income from house property (incl. home loan interest) | Sections 24, 25 | Section 22 |
| Arrears of rent and unrealised rent | Section 25A | Section 23 |
| Property owned by co-owners | Section 26 | Section 24 |
| Interpretation | Section 27 | Section 25 |
Profits and Gains of Business or Profession (Sections 28–44DB)
| Provision | Old Section (1961 Act) | New Section (2025 Act) |
|---|
| Income under head "Profits and gains of business or profession" | Section 28 | Section 26 |
| Manner of computing profits and gains | Section 29 | Section 27 |
| Rent, rates, taxes, repairs, insurance | Sections 30, 31, 38 | Section 28 |
| Deductions related to employee welfare | Sections 36, 40A | Section 29 |
| Depreciation | Sections 32, 38 | Section 33 |
| Scientific research expenditure | Section 35 | Section 45 (Read with Schedule XIII) |
| General conditions for allowable deductions | Section 37 | Section 34 |
| Amounts not deductible | Section 40 | Section 35 |
| Expenses not deductible (section 40A) | Section 40A | Section 36 |
| Actual payment basis (Section 43B) | Section 43B | Section 37 |
| Tax audit | Section 44AB | Section 63 |
| Presumptive taxation (business - Section 44AD) | Section 44AD | Section 45 |
| Presumptive taxation (professionals - Section 44ADA) | Section 44ADA | Section 46 |
Capital Gains (Sections 45–55)
| Provision | Old Section (1961 Act) | New Section (2025 Act) |
|---|
| Capital gains charging section | Section 45 | Section 50 |
| Mode of computation | Section 48 | Section 51 |
| Exemption on residential house (Section 54) | Section 54 | Section 54 |
| Exemption on reinvestment (Section 54F) | Section 54F | Section 55 |
| Cost of acquisition | Section 55 | Section 58 |
| Tax on short-term capital gains (STT paid - Section 111A) | Section 111A | Section 196 |
| Tax on long-term capital gains (Section 112) | Section 112 | Section 197 |
| Tax on long-term gains in certain cases (Section 112A) | Section 112A | Section 198 |
Income from Other Sources (Sections 56–59)
| Provision | Old Section (1961 Act) | New Section (2025 Act) |
|---|
| Income taxable under other sources | Section 56 | Section 60 |
| Deductions allowed | Section 57 | Section 61 |
| Unexplained cash credits | Section 68 | Section 68 |
| Unexplained investments | Section 69 | Section 69 |
| Unexplained money & assets | Sections 69A–69D | Sections 69A–69D |
Set-Off & Carry Forward of Losses
| Provision | Old Section (1961 Act) | New Section (2025 Act) |
|---|
| Intra-head adjustment | Section 70 | Section 80 |
| Inter-head adjustment | Section 71 | Section 81 |
| Carry forward of business loss | Section 72 | Section 82 |
| Carry forward of capital loss | Section 74 | Section 85 |
Chapter VI-A Deductions (Now Chapter VIII of 2025 Act)
| Provision | Old Section (1961 Act) | New Section (2025 Act) |
|---|
| Deduction for investments (PPF, ELSS, life insurance, etc.) | Section 80C | Section 123 |
| NPS deduction (Section 80CCD) | Section 80CCD | Section 102 |
| Health insurance (Section 80D) | Section 80D | Section 103 |
| Education loan interest (Section 80E) | Section 80E | Section 105 |
| Donations (Section 80G) | Section 80G | Section 108 |
| Infrastructure undertakings (Section 80IA) | Section 80IA | Section 115 |
| Employment generation (Section 80JJAA) | Section 80JJAA | Section 120 |
Tax Regime
| Provision | Old Section (1961 Act) | New Section (2025 Act) |
|---|
| New tax regime (default regime - Section 115BAC) | Section 115BAC | Section 202 |
| Tax rebate (Section 87A) | Section 87A | Section 156 |
TDS & TCS Provisions (Sections 192–206C)
New Act consolidates numerous scattered TDS sections into fewer, logically grouped provisions, mainly under Sections 392, 393, and 394.
| Provision | Old Section (1961 Act) | New Section (2025 Act) |
|---|
| TDS on salary (Section 192) | Section 192 | Section 392 |
| TDS on interest (Section 194A) | Section 194A | Section 172 |
| TDS on contractors (Section 194C) | Section 194C | Section 393(1) Sl.6(i) |
| TDS on professional fees (Section 194J) | Section 194J | Section 178 |
| TDS on commission/brokerage - insurance (Section 194D) | Section 194D | Section 393 |
| TCS provisions (Section 206C) | Section 206C | Section 200 |
Key point: More than 20 non-salary TDS provisions, including Sections 194, 194A, 194C, 194I, 194J, and 194Q, are now grouped under single master Section 393.
Return Filing & Assessment
| Provision | Old Section (1961 Act) | New Section (2025 Act) |
|---|
| Return filing requirement (Section 139) | Section 139 | Section 210 |
| Self-assessment tax (Section 140A) | Section 140A | Section 215 |
| Inquiry notice (Section 142(1)) | Section 142(1) | Section 220 |
| Scrutiny assessment (Section 143(2)) | Section 143(2) | Section 221 |
| Best judgment assessment (Section 144) | Section 144 | Section 222 |
Income Tax Notices
| Provision | Old Section (1961 Act) | New Section (2025 Act) |
|---|
| Income escaping assessment (Section 147) | Section 147 | Section 230 |
| Reassessment notice (Section 148) | Section 148 | Section 231 |
| Inquiry before reopening (Section 148A) | Section 148A | Section 232 |
| Rectification of mistake (Section 154) | Section 154 | Section 240 |
| Revision by Commissioner (Section 263) | Section 263 | Section 260 |
| Revision in favour of assessee (Section 264) | Section 264 | Section 261 |
Penalties
| Provision | Old Section (1961 Act) | New Section (2025 Act) |
|---|
| Penalty for underreporting (Section 270A) | Section 270A | Section 300 |
| Penalty for unexplained income (Section 271AAC) | Section 271AAC | Section 302 |
| Search-related penalty (Section 271AAB) | Section 271AAB | Section 305 |
| Prosecution for tax evasion (Section 276C) | Section 276C | Section 330 |
Appeals
| Provision | Old Section (1961 Act) | New Section (2025 Act) |
|---|
| Appeal to Commissioner (Appeals) (Section 246A) | Section 246A | Section 350 |
| Appeal to ITAT (Section 253) | Section 253 | Section 355 |
| Appeal to High Court (Section 260A) | Section 260A | Section 360 |
Key Things to Remember
Section 80C is Now Section 123
Most popular tax-saving section has moved to Section 123. Deduction remains ₹1.5 lakh per financial year, and eligible investments (PPF, ELSS, life insurance, NSC, etc.) remain same. Eligible investments shifted to Schedule XV of new Act.
TDS Sections Are Now Under Sections 392, 393, and 394
| Old TDS Section | New Section |
|---|
| Section 192 (Salary) | Section 392 |
| Section 194A (Interest) | Section 172 |
| Section 194C (Contractors) | Section 393(1) Sl.6(i) |
| Section 194J (Professional fees) | Section 178 |
| Section 194D (Insurance commission) | Section 393 |
| Section 206C (TCS) | Section 200 |
Key Deductions Mapping (At a Glance)
| Old Section | New Section | Purpose |
|---|
| 80C | 123 | Investments (PPF, ELSS, life insurance, etc.) |
| 80CCD | 102 | NPS deduction |
| 80D | 103 | Health insurance |
| 80E | 105 | Education loan interest |
| 80G | 108 | Donations |
| 80IA | 115 | Infrastructure undertakings |
| 80JJAA | 120 | Employment generation |
Tax Audit and Presumptive Taxation
| Old Section | New Section | Purpose |
|---|
| 44AB | 63 | Tax audit |
| 44AD | 45 | Presumptive taxation (business) |
| 44ADA | 46 | Presumptive taxation (professionals) |
Who Needs This Mapping?
This reference page is useful for:
| Audience | Why They Need This |
|---|
| Chartered Accountants | To reference old section numbers in client matters and interpret new law correctly |
| CA Students | For exam preparation—old section numbers still relevant for historical context |
| Finance Teams | To ensure payroll systems, Form 16, and accounting software updated correctly |
| Payroll Professionals | To correctly reference TDS sections in salary processing |
| Business Owners | To understand tax notices and compliance requirements |
| Tax Consultants | To help clients transition smoothly to new numbering system |
How Tax Garden Helps
Transitioning from old Income Tax Act, 1961 to new Income Tax Act, 2025 can be confusing. Understanding which new section corresponds to which old provision is essential for accurate tax filing and compliance.
Tax Garden's CAs help you:
- Navigate new section numbers and understand tax obligations
- File ITR correctly under new Act
- Ensure payroll and TDS systems updated with new section numbers
- Stay compliant with latest provisions
Sources: ClearTax; TaxGuru; EBC Webstore; Tax2Win; Moneycontrol; Zeroinfy; Income Tax Department (incometaxindia.gov.in). Verify current provisions and notifications on incometaxindia.gov.in before acting, as rules may be updated periodically. This article is general information on Income Tax Act section mapping and not substitute for professional advice.
