Frequently Asked Questions
About the Income-tax Act, 2025 transition
When does the Income-tax Act, 2025 come into effect?
The Income-tax Act, 2025 comes into effect from 1 April 2026. It applies to Assessment Year 2026-27 (Financial Year 2025-26) and onwards, and replaces the Income-tax Act, 1961.
Is Section 80C still available under the new Act?
Yes. Section 80C corresponds to Section 123 of the Income-tax Act, 2025, read with Schedule XV, which lists the eligible investments and payments. The aggregate deduction cap of ₹1.5 lakh is retained and continues to be available only under the old tax regime. LIC, PF, ELSS, tuition fees, housing loan principal and other eligible investments continue to qualify.
What replaces Section 195 / Form 15CA / 15CB?
Section 195 corresponds primarily to
Section 393 of the 2025 Act, read with
Sections 395, 397 and 400 for the related procedural and compliance provisions. Forms
15CA and 15CB for foreign remittance reporting have been replaced by new
Forms 145 and 146 under the Income-tax Rules, 2026.
Read our detailed guide on Form 145/146.
Has Section 139 (return of income) changed?
Section 139 corresponds to Section 263 of the 2025 Act, with related return-filing provisions for trusts and institutions in Sections 347–350. The updated return (ITR-U) window originally introduced by Section 139(8A) has been extended to 48 months under the new Act, giving taxpayers a longer window to correct omissions and errors.
Why do some 1961 sections show "No direct correspondence"?
41 of the 558 mapped sections of the 1961 Act have no direct corresponding provision in the enacted Income-tax Act, 2025. These are mostly sunset deductions (e.g., Sections 80-IC, 80-ID, 32AC), abolished levies (e.g., Dividend Distribution Tax under Section 115-O) and historical or repealed provisions that were deliberately not carried into the new Act. The tool marks these clearly instead of forcing an approximate match.
Are tax rates changing under the new Act?
The Income-tax Act, 2025 is primarily a simplification and re-codification of the 1961 Act. Tax rates continue to be determined by the Finance Act passed each year. Structural changes such as the default new regime (old Section 115BAC → new Section 202) and the enhanced Section 87A rebate (now Section 156) have been absorbed into the new Act.
Is this mapping tool official?
No. This is an independent reference tool maintained by CA Alok Kumar. Every mapping was re-verified in July 2026 against the section-correspondence table in the ICAI Bare Law publication of the Income-tax Act, 2025 (as enacted), read with the CBDT Section-to-Clause correspondence. For any specific case, please consult a qualified professional.
What about the Income-tax Rules, 1962?
The Income-tax Rules, 1962 have been replaced by the new Income-tax Rules, 2026, which were notified alongside the new Act and also come into effect from 1 April 2026. Many familiar forms (15CA/15CB, 3CD, 10B, 10BB) have been renumbered or redesigned under the new Rules.
Will pending assessments / appeals under the 1961 Act be affected?
No. As per the transitional / saving provisions of the Income-tax Act, 2025, proceedings pending under the 1961 Act (pending assessments, reassessments, appeals, penalty proceedings, prosecutions) continue to be governed by the 1961 Act. The new Act applies to AY 2026-27 onwards.