819 Sections Became 536. Every Section Number You Memorized Is Now Wrong.
The Income Tax Act 1961 was repealed on April 1, 2026. Its replacement — the Income Tax Act 2025 — carries 536 sections across 23 chapters and 16 schedules.
The tax rates did not change. The deduction limits did not change. But every section number changed. Section 80C is now 123. Section 10 moved to Schedule II. Sixty TDS sections collapsed into three. And at least 7 substantive policy changes were buried inside what the government called “simplification.”
This is the complete mapping — every section that matters, what changed beyond the number, and the traps waiting for anyone who does not update their references before July 2026 filing season.
What Actually Happened: The Numbers
| Metric | 1961 Act | 2025 Act | Change |
|---|---|---|---|
| Total sections | 819 | 536 | -35% |
| Chapters | 47 | 23 | -51% |
| Schedules | 14 | 16 | +2 |
| Provisos | ~1,200 | 0 | Eliminated |
| Explanations | ~900 | 0 | Absorbed into main text |
| Total words | 5.12 lakh | 2.6 lakh | -49% |
| Tables | 0 | 39 | New |
| Formulas | 0 | 40 | New |
| Income Tax Rules | 511 | 333 | -35% |
| Forms | 399 | 190 | -52% |
The Act got shorter in sections but added two more schedules. The exemptions that used to live inside Section 10 were moved into Schedules II through VII. Complexity was redistributed, not eliminated.
The Complete Section Mapping Table
Income Heads and Computation
| Old Section (1961) | New Section (2025) | Topic | What Changed |
|---|---|---|---|
| Section 2 | Section 2 | Definitions | Expanded — now includes Virtual Digital Assets, Tax Year |
| Section 4 | Section 4 | Charge of income tax | ”Previous Year” and “Assessment Year” replaced with “Tax Year” |
| Section 5 | Section 5 | Scope of total income | Substantially unchanged |
| Section 10 (all sub-clauses) | Section 11 + Schedules II-VII | Exempt income | 46 exemptions moved from one mega-section to 6 schedules |
| Section 14 | Section 13 | Heads of income | Same 5 heads retained |
| Section 15-17 | Section 15-19 | Salary income | Section 19 now covers multiple old sub-sections |
| Section 22-27 | Sections 20-26 | House property income | Largely unchanged |
| Section 28-44 | Sections 27-57 | Business/profession income | Reorganized, not changed |
| Section 44AB | Section 63 | Tax audit | Threshold unchanged at Rs 1 crore (10 crore for digital) |
| Section 44AD, 44ADA, 44AE | Section 58 | Presumptive taxation | 3 sections merged into 1 with tabular format |
| Section 45 | Section 67 | Capital gains | Definition unchanged |
| Section 48 | Section 72 | Capital gains computation | |
| Section 54 | Section 82 | Residential property exemption | |
| Section 55 | Section 74 | Cost of acquisition | |
| Section 56 | Section 85 | Other sources |
Deductions (The 80C Family)
| Old Section (1961) | New Section (2025) | Topic | What Changed |
|---|---|---|---|
| Section 80C + 80CCC + 80CCC(1) | Section 123 + Schedule XV | PPF, ELSS, LIC, EPF | Three sections merged into one. Rs 1.5L limit unchanged |
| Section 80CCD(1) | Section 124 | NPS self-contribution | |
| Section 80CCD(1B) | Section 124 | NPS additional Rs 50K | Merged into same section |
| Section 80CCD(2) | Section 124 | Employer NPS (up to 14%) | Still works in both regimes |
| Section 80D | Section 126 | Health insurance | Rs 25K/50K/1L limits unchanged |
| Section 80DD | Section 127 | Disabled dependent | |
| Section 80DDB | Section 128 | Medical treatment | |
| Section 80E | Section 129 | Education loan interest | |
| Section 80EEA | Section 130 | Home loan interest (affordable) | Window closed March 2022 — full home loan tax benefit guide |
| Section 80G | Section 133 | Donations | |
| Section 80GG | Section 131 | Rent (non-HRA) | |
| Section 80TTA | Section 134 | Savings interest (Rs 10K) | |
| Section 80TTB | Section 135 | Senior citizen interest (Rs 1L) | Increased from Rs 50K in Budget 2025 |
| Section 80U | Section 136 | Disabled person |
Capital Gains Tax Rates
| Old Section (1961) | New Section (2025) | Topic | What Changed |
|---|---|---|---|
| Section 111A | Sections 196-198 | STCG on listed equity | 20% rate unchanged |
| Section 112 | Section 199 | LTCG general | |
| Section 112A | Section 200 | LTCG on listed equity | 12.5% above Rs 1.25L unchanged |
| Section 115BAC | Section 202 | New tax regime | Expanded to AOP, BOI, Artificial Juridical Persons |
TDS — The Biggest Structural Change
| Old Section (1961) | New Section (2025) | Topic | What Changed |
|---|---|---|---|
| Section 192 | Section 392 | TDS on salary | Standalone section |
| Section 193 | Section 393, Table 1 | TDS on interest on securities | Consolidated |
| Section 194 | Section 393, Table 1 | TDS on dividends | Consolidated |
| Section 194A | Section 393, Table 1 | TDS on other interest | Consolidated |
| Section 194B | Section 393, Table 1 | TDS on lottery winnings | Consolidated |
| Section 194C | Section 393, Table 2 | TDS on contractors | Consolidated + manpower supply explicitly included |
| Section 194H | Section 393, Table 2 | TDS on commission | Consolidated |
| Section 194I | Section 393, Table 2 | TDS on rent | Consolidated |
| Section 194J | Section 393, Table 2 | TDS on professional fees | Consolidated |
| Section 194N | Section 393, Table 3 | TDS on cash withdrawal | Consolidated |
| Section 194O | Section 393, Table 3 | TDS on e-commerce | Consolidated |
| Section 194Q | Section 393, Table 3 | TDS on purchase of goods | Consolidated |
| Section 194S | Section 393, Table 3 | TDS on VDA/crypto | Consolidated |
| Section 194T | Section 393, Table 3 | TDS on partnership payments | Consolidated |
| Section 195 | Section 393 | TDS on NRI payments | Consolidated |
| Section 206C (all) | Section 394 | TCS | Consolidated into single section |
The payment code system: Every non-salary TDS transaction now carries a four-digit payment code (1001-1092). Challan deposits, Form 141 submissions, and Form 168 statements reference both the Section 393 sub-clause AND the numeric payment code. This is an entirely new abstraction layer.
Filing and Returns
| Old Section (1961) | New Section (2025) | Topic | What Changed |
|---|---|---|---|
| Section 139(1) | Section 263 | ITR filing | Due dates retained: Jul 31, Aug 31, Oct 31, Nov 30 |
| Section 139(5) | Section 265 | Revised return | |
| Section 140A | Section 266 | Self-assessment tax | |
| Section 143(1) | Section 268 | Intimation | |
| Section 143(3) | Section 270 | Scrutiny assessment | |
| Section 144 | Section 271 | Best judgment assessment | |
| Section 147 | Section 279 | Reassessment | |
| Section 148 | Section 280 | Reassessment notice | |
| Section 154 | Section 295 | Rectification | Continues for pre-2026 under old numbers |
| Section 234A | Section 433 | Interest on late filing | |
| Section 234B | Section 434 | Interest on advance tax default | |
| Section 234C | Section 435 | Interest on deferment |
Penalties
| Old Section (1961) | New Section (2025) | Topic | What Changed |
|---|---|---|---|
| Section 270A | Section 439 | Under-reporting income | |
| Section 271(1)(b) | Sections 440-446 | Non-compliance penalties | Reorganized by type |
| Section 271(1)(c) | Section 439 | Concealment | |
| Section 271B | Section 441 | Failure to get tax audit | |
| Section 271C | Section 448 | Failure to deduct TDS | |
| Section 271-I | Section 462 | Failure to furnish 15CA/15CB | Rs 1,00,000 penalty |
| Section 271J | Section 463 | Wrong info by CA/valuer | Rs 10,000 per report |
Exempt Organizations and Charitable Trusts
| Old Section (1961) | New Section (2025) | Topic | What Changed |
|---|---|---|---|
| Section 11, 12, 12A | Single chapter | Charitable trusts | Previously scattered, now consolidated |
| Section 13A, 13B | Schedule VIII | Political party exemptions | Moved to schedule |
| Section 80G registration | Consolidated with Section 133 | Donation eligibility | |
| Section 10(23C) | Schedule II | Educational/medical institutions | Moved to schedule |
Other Key Sections
| Old Section (1961) | New Section (2025) | Topic | What Changed |
|---|---|---|---|
| Section 87A | Section 207 | Rebate | New regime: Rs 60,000 (up to Rs 12L taxable) |
| Section 234F | Section 436 | Late filing fee | Rs 5,000 (Rs 1,000 if income < Rs 5L) |
| Section 245 | Section 437 | Set-off of refund against demand | |
| Faceless Assessment (scheme) | Section 532 | E-assessment | Now statutory — not scheme-based |
| — | Section 536 | Transitional provisions | New — governs carry-forwards |
Form Number Changes — What Your Payroll and Software Need to Update
| Old Form | New Form | What It Is | Deadline Impact |
|---|---|---|---|
| Form 15G + Form 15H | Form 121 | TDS declaration | Merged — single form from April 2026 |
| Form 16 | Form 130 | Salary TDS certificate | Must be issued by June 15 |
| Form 16A | Form 131 | Non-salary TDS certificate | |
| Form 24Q | Form 138 | Quarterly salary TDS return | |
| Form 26AS | Form 168 | Annual tax information statement | |
| Form 26QB/QC/QD/QE | Form 141 | PAN-based TDS challan | Four forms merged into one |
| PAN application | Forms 93-96 | New PAN/TAN applications | Only for applications from April 1, 2026 |
Total forms reduced: 399 → 190 (52% fewer). Every HR department, payroll software vendor, and CA’s template library needs simultaneous updating.
7 Substantive Changes Hidden Inside “Simplification”
The government’s position: “No change in law — only simplification.” The reality:
1. HRA Metro City List Expanded
Old regime HRA exemption allows 50% of basic salary for metro cities. Previously, “metro” meant Delhi, Mumbai, Chennai, Kolkata only.
Now Bangalore, Pune, Hyderabad, and Ahmedabad qualify for 50% HRA (previously 40%).
Impact: A salaried employee in Bangalore with Rs 30,000 monthly basic and Rs 15,000 rent gets Rs 18,000 more in annual HRA exemption under old regime.
2. Children’s Education Allowance — 30x Increase
Old limit: Rs 100 per month per child (Rs 2,400/year for 2 children). Set in 1997, never revised.
New limit: Rs 3,000 per month per child (Rs 72,000/year for 2 children).
This is a Rs 69,600 increase in annual exempt allowance that received almost zero media coverage.
3. TDS Refunds Available on Belated Returns
Under the 1961 Act, missing the July 31 due date could effectively kill your TDS refund claim in certain edge cases.
The 2025 Act explicitly allows TDS refunds on belated returns. If you had excess TDS deducted and filed late, you can still claim it.
4. New Tax Regime Expanded to AOPs, BOIs, and AJPs
Section 115BAC (now Section 202) previously applied only to Individuals and HUFs.
Now applies to Associations of Persons, Bodies of Individuals, and Artificial Juridical Persons. Trusts and associations can now use the lower slab rates under the new regime.
5. Virtual Digital Space Search Powers
Entirely new provision — no equivalent in 1961 Act.
Tax authorities can now gain access to virtual digital spaces during search and seizure — email servers, social media accounts, online trading accounts, crypto wallets. They have the power to override access codes.
6. MACT Interest Fully Exempt
Interest awarded by Motor Accident Claims Tribunals to a natural person is now fully exempt from income tax. No TDS. The old Rs 50,000 ceiling no longer applies. Accident victims and families receive the full amount.
7. Manpower Supply Explicitly in TDS Net
The 1961 Act was ambiguous about whether deploying contract workers constituted “work” under Section 194C. Companies and CAs disagreed on whether to deduct TDS.
The 2025 Act explicitly includes manpower supply services as “work” under TDS provisions. The ambiguity is settled — deduct TDS on manpower supply.
The Tax Year Trap — AY Is Dead
The 2025 Act eliminates “Previous Year” and “Assessment Year.” Both are replaced by Tax Year.
The Conversion Rule
| Old Reference | New Reference | Period |
|---|---|---|
| FY 2025-26 / AY 2026-27 | Tax Year 2025-26 | Apr 2025 - Mar 2026 |
| FY 2026-27 / AY 2027-28 | Tax Year 2026-27 | Apr 2026 - Mar 2027 |
| FY 2024-25 / AY 2025-26 | Tax Year 2024-25 | Apr 2024 - Mar 2025 |
The number goes DOWN by one when converting from AY. AY 2026-27 = Tax Year 2025-26. AY 2027-28 = Tax Year 2026-27.
This matters because:
- Every legal notice from April 2026 uses “Tax Year” only
- Every contract clause referencing “Assessment Year” needs mental translation
- Every tribunal filing and court precedent built over 60 years references AY
- Practitioners with decades of muscle memory will misquote years
The TDS Transition Nightmare: Cross-Year Reconciliation
If you are a TDS deductor or reconciliation team member, this is the section that matters most.
The Problem
Late-deposited TDS from Q4 FY 2025-26 (where the deductor delayed deposit) may trickle into Form 26AS after April 1, 2026. Those credits show Section 194J because the deduction was made before the transition date.
Meanwhile, all FY 2026-27 deductions show Section 393(1)(b) — the new consolidated section.
Your reconciliation for Tax Year 2026-27 will contain both old and new section codes simultaneously for at least 12-18 months.
What Deductors Must Do
- Update TDS software to use new Section 393 sub-clauses and four-digit payment codes from April 1, 2026
- Stop quoting old section numbers (194C, 194J, 194H) in challans — the IT portal will reject them
- Use Form 141 (not old 26QB/QC/QD/QE) for PAN-based TDS from April 2026
- Maintain dual records for the transition period — Q4 FY 2025-26 late deposits under old sections, FY 2026-27 deposits under Section 393
- Reconcile Form 26AS (legacy) with Form 168 (new) for employees and vendors who straddle both periods
The Case Law Reset
The 1961 Act accumulated 60+ years of Supreme Court judgments, High Court rulings, ITAT orders, and CBDT circulars — all referencing specific section numbers, provisos, and explanations.
The 2025 Act eliminated 1,200 provisos and 900 explanations. They were absorbed into plain language or dropped entirely.
Why This Creates Risk
A proviso in Section 194J that said “provided that no deduction shall be made if the amount does not exceed Rs 30,000” is now somewhere inside Section 393’s table structure. The legal interpretation of that proviso — built through 15 years of tribunal rulings — may or may not carry forward seamlessly.
Section 536 (transitional provisions) says actions under the old Act continue to be valid. But when a taxpayer cites a 2019 Supreme Court ruling that interprets “the proviso to Section 194J(1)” and the new Act has no provisos at all — courts will need to establish fresh interpretation chains.
Expect 3-5 years of increased litigation as the legal profession adjusts.
The ICAI Second Edition Problem
ICAI released its first edition of the Income Tax Act 2025 mapping guide shortly after Presidential assent in August 2025. Then the Finance Act 2026 amended the 2025 Act — before it even took effect.
The first edition’s section numbers were wrong. ICAI had to release a second edition.
Any mapping table, article, or tool published between August 2025 and March 2026 may use outdated section numbers from the original Bill. Verify against the second edition or the IT Department’s official navigator before relying on any mapping.
What the 283 Abolished Sections Actually Were
The Act went from 819 to 536 sections — 283 sections disappeared. Where did they go?
| Category | What Happened | Example |
|---|---|---|
| Merged | Multiple sections collapsed into one | 60+ TDS sections → 3 sections |
| Moved to schedules | Content shifted from sections to schedules | Section 10 exemptions → Schedules II-VII |
| Obsolete provisions removed | Expired incentive schemes deleted | Section 10A (free trade zone, expired FY 2012-13) |
| Provisos absorbed | 1,200 provisos written into main text | No standalone proviso exists in 2025 Act |
| Explanations absorbed | 900 explanations written into main text | Explanation 1 to Section 194J → part of Section 393 table |
| Alphabetic sections removed | No more 80CCA, 80CCB, 80CCC as separate sections | All merged into sequential numbering |
The 2025 Act uses purely sequential numbering — no Section 80CCA, no Section 194IA, no Section 271AAB. Every section is a plain number.
Where to Find Official Mapping Resources
-
Income Tax Department Section Navigator: incometaxindia.gov.in — enter any old section number, get the new equivalent
-
ICAI Second Edition (post-Finance Act 2026): Section-wise tabular mapping between both Acts. Use only the second edition — the first edition has wrong numbers
-
IT Department Form Mapping Guide (PDF): Official form number mapping — old form numbers to new
-
IT Department FAQs on Transition: Interplay and transition provisions — how pre-2026 items carry forward
-
KDK Software Section Mapper: Free tool for CAs — bidirectional lookup
What You Need to Do Before July 2026
If you are a salaried taxpayer: Nothing changes for your FY 2025-26 filing (due July 31, 2026). Old section numbers apply. But when you file for Tax Year 2026-27 (due July 31, 2027), every reference will use new section numbers.
If you are a CA or tax practitioner: Update all templates, computation sheets, and audit report formats to new section numbers. Every client communication from April 2026 must reference 2025 Act sections. Do not rely on pre-March 2026 mapping guides.
If you are a TDS deductor or employer: Update payroll software before April 1, 2026. Switch to Form 141, Form 130, Form 131. Use Section 393 sub-clauses and payment codes. Stop quoting 194C/194J/194H.
If you are an NRI: Your old Form 15CA/15CB is now Form 145/146. The penalty for not filing (Section 462) is Rs 1,00,000. Your TDS certificate changes from Form 16A to Form 131. Update your records.
If you have carry-forward losses or MAT/AMT credits: Verify with your CA that each item is correctly mapped from old section references to new. Section 536 provides continuity, but the mapping must be explicit in your return.
The Bottom Line
The Income Tax Act 2025 does not change how much tax you pay. It changes every reference number you use to navigate the tax system. Section numbers, form numbers, even the name of the year you file for — all different.
The “simplification” is real in structure: fewer sections, no provisos, tables instead of paragraphs. But the transition cost is also real: every practitioner, every software system, every employer, and every court needs to relearn the reference framework simultaneously.
The 1961 Act survived 64 years and 3,000+ amendments. The 2025 Act starts fresh — with its first amendment (Finance Act 2026) arriving before the ink was dry.
Got a tax notice with old or new section numbers? Section 143(1) is now Section 268. Section 148 is now Section 280. But the response process is the same — see our complete tax notice response guide for exact deadlines and step-by-step instructions.
Chose the new regime and think you can’t save tax? Meal vouchers (₹1.05L/year), employer NPS (14%), gift vouchers (₹15K) — the deduction list is longer than most people think. See how to save tax under the new regime for the complete breakdown.
Data sourced from the Income Tax Department (incometax.gov.in), ICAI second edition mapping guide, CBDT notifications, and Finance Act 2026. All section numbers verified against post-Finance Act 2026 numbering. Last verified: April 2026.