Income-tax Act, 2025 — Transition from the Income-tax Act, 1961
The Income-tax Act, 2025 came into force on 1 April 2026, replacing the Income-tax Act, 1961. The Income-tax Rules, 2026 came into force on the same date. The restructuring is largely one of consolidation and renumbering rather than a change in tax policy: rates and slabs remain substantially unchanged.
Key structural changes
- Fewer sections — 536 sections across 23 chapters and 16 schedules, in place of the 800-plus sections of the erstwhile Act.
- Single “tax year” — the twin concepts of “previous year” and “assessment year” are replaced by a single tax year (Section 3).
- Sequential numbering — alphanumeric suffixes such as 80CCD(1B) or 194-IA are discontinued; sections are numbered sequentially.
- Exemptions moved to Schedules — provisions formerly in Section 10 are set out in the Schedules to the new Act.
- Not-for-profit framework consolidated — trusts and institutions are now “Registered Non-Profit Organisations” under Part B of Chapter XVII (Sections 332 to 355).
- Rules and forms reduced — the Income-tax Rules, 2026 reduce the rule count from 511 to 333 and forms from 399 to 190.
Comparative section reference
| Provision | Income-tax Act, 2025 | Income-tax Act, 1961 |
|---|---|---|
| Definition of tax year | Section 3 | Sections 2(9) / 3 |
| Maintenance of books of account | Section 62 | Section 44AA |
| Tax audit | Section 63 | Section 44AB |
| Presumptive taxation (residents) | Section 58 | Sections 44AD / 44ADA / 44AE |
| Deduction — life insurance, PF, etc. | Section 123 | Section 80C |
| Deduction — health insurance premia | Section 126 | Section 80D |
| Deduction — donations to charitable institutions | Section 133 | Section 80G |
| Return of income | Section 263 | Section 139 |
| Self-assessment | Section 266 | Section 140A |
| Registration of not-for-profit organisations | Section 332 | Sections 12A / 12AA / 12AB |
| Approval for donor deduction | Section 354 | Section 80G |
| Lower / nil deduction certificate | Section 395 | Section 197 |
The table above covers provisions commonly encountered in practice and is not exhaustive. The Central Board of Direct Taxes has published an official section mapping utility on the income tax portal for a complete correspondence between the two Acts. Readers should refer to the bare Act and the official utility for authoritative reference.
Compliance Due Dates
Illustrative — to be updated monthly.
| Due date | Compliance | Period |
|---|---|---|
| 7th | Deposit of TDS/TCS deducted | Previous month |
| 11th | GSTR-1 (monthly filers) | Previous month |
| 15th | PF & ESI payment | Previous month |
| 20th | GSTR-3B (monthly filers) | Previous month |
Articles
- Income-tax Act, 2025: what changes for individual taxpayers
- Tax audit under Section 63: thresholds and reporting
- The RNPO framework: what trusts and societies must do differently
- GST registration: when it becomes mandatory for your business
- Annual ROC compliance checklist for private limited companies
- Books of account: what the law requires you to maintain