Income Tax Act 2025 — Transition from Income-Tax Act 1961 (Effective 1 April 2026): Section-by-Section Mapping + Forms
What changed — 1 amendment
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Initial publication — IT Act 1961 → 2025 transition memo with full section mapping (192 → 392; 194C/J/T/195 → 393; 44AB → 63; 80C → 123; Form 27Q → 144; 15CA/CB → 145/146)
IT Act 2025 transition India: 1961 Act repealed 1 April 2026. Section mapping 194C→393, 195(6)→397(3)(d), 44AB→63, 80C→123. New Form 144/145/146.
The Income Tax Act, 1961 stands repealed effective 1 April 2026 per Section 536 of the Income-tax Act, 2025. This is the single biggest structural change in Indian direct-tax law in 60+ years — the 819-section / 14-schedule 1961 Act is replaced by a 536-section / 16-schedule 2025 Act with extensive consolidation, simplification, and new terminology (“Tax Year” replaces “Assessment Year”). This page is the canonical reference for the section-by-section mapping, the transitional rules, and which Act governs which transactions — all primary-source-verified from CBDT’s official “FAQs on Interplay and Transition” document.
The pivot date
| Period | Income earned | Governing Act | Assessment terminology |
|---|---|---|---|
| Up to 31 March 2026 | FY 2025-26 income | Income-tax Act, 1961 | AY 2026-27 (last AY under 1961) |
| From 1 April 2026 | TY 2026-27 income | Income-tax Act, 2025 | Tax Year 2026-27 (first TY under 2025) |
“Tax Year” under the 2025 Act corresponds to the old “Previous Year” concept under 1961 — it is the year of earning, not the year of assessment. The term Assessment Year is discontinued under the 2025 Act.
Section mapping — verified from CBDT’s transition FAQ
The following mapping is primary-source-verified from the CBDT “FAQs on Interplay and Transition” PDF (cached as evidence, fetched 27 May 2026):
| Topic | Old (1961 Act) | New (2025 Act) | Key note |
|---|---|---|---|
| TDS on Salaries | Section 192 | Section 392 | Salary TDS isolated |
| TDS on all other non-salary payments (contractor, professional, partner, rent, brokerage, transfer of immovable property, etc.) | Sections 192-194T | Section 393 with 3 tables | All non-salary TDS consolidated |
| TCS | (various 206C variants) | Section 394 | Collection at source consolidated |
| Foreign payment TDS reporting | Section 195(6) | Section 397(3)(d) | Reporting obligation reframed |
| Tax audit | Section 44AB | Section 63 | Thresholds unchanged (₹1 cr / ₹10 cr business; ₹50 lakh / ₹75 lakh professional) |
| Presumptive taxation (business + profession) | Sections 44AD / 44ADA | Section 58 (consolidated) | Deemed-profit % unchanged; Section 408(2) for advance tax |
| Section 80C deductions | Section 80C + Chapter VI-A | Section 123 + Schedule XV | ₹1.5 lakh limit unchanged |
| Section 10 exemptions | Section 10 + sub-sections | Schedule II | Moved from sections to schedule |
| All deductions | Chapter VI-A | Chapter VIII (Part C specifically) | Consolidated; Section 122(5) makes timely return mandatory |
Substantive policy is largely unchanged. The 2025 Act is primarily a structural rewrite — simplification, consolidation, removal of obsolete provisions. Rates, slabs, thresholds, deemed-profit percentages, and deduction limits mostly carry forward identically.
Form mapping — new forms under IT Act 2025
| Topic | Old form (1961) | New form (2025) |
|---|---|---|
| TDS quarterly statement (non-salary, foreign) | Form 27Q | Form 144 |
| Foreign remittance declaration (declarant) | Form 15CA | Form 145 |
| Foreign remittance CA certificate | Form 15CB | Form 146 |
| Tax audit forms | Form 3CA/3CB + 3CD | (forms applicable to TY 2026-27 onwards per Notification 22/2026; old forms continue for AY 2026-27) |
| Earlier Form 10AB | Form 10AB | Form 105 |
Per Notification No. 22/2026, new forms under IT Rules 2026 are live on the e-Filing portal. Access path: e-File → Income Tax Forms → File Income Tax Forms → Forms under Income Tax Act, 2025.
Existing CBDT circulars and rulings under the 1961 Act continue to apply to corresponding provisions in the 2025 Act where intent is unchanged (per CBDT FAQ Q1.21).
TDS section-quoting transition — the system-level pivot
For deductors, the most operationally significant rule:
| Transaction date | Section to quote |
|---|---|
| On or before 31 March 2026 | Old section numbers (192, 194C, 194J, 194T, 195, etc.) — under IT Act 1961 |
| On or after 1 April 2026 | New section numbers (392, 393, 394) — under IT Act 2025. Quoting old numbers may cause system-level validation errors on the TDS return portal. |
For the cross-period TDS return (Q4 FY 2025-26 covering Jan-Mar 2026 transactions): filed under 1961 Act using Form 24Q / 26Q / 27Q / 27EQ, due 31 May 2026. Q1 TY 2026-27 (covering Apr-Jun 2026 transactions): filed under 2025 Act using new forms (Form 144 for foreign TDS), due 31 July 2026.
What this means for your existing FY 2025-26 filing
If you are filing for FY 2025-26 (AY 2026-27) — which is the last AY cycle under the 1961 Act — nothing changes in substance:
- File ITR under IT Act 1961 using existing forms (ITR-1, ITR-2, ITR-3, ITR-4, etc. for AY 2026-27 — published under “Forms as per Income-tax Act, 1961” on the e-Filing portal from 1 April 2026)
- Tax audit report due 30 September 2026 under Form 3CA/3CB + 3CD
- Section references in your return remain 1961 numbering (Section 80C, 80D, 44AB, 194C, etc.)
The transition affects you only from FY 2026-27 onwards (Tax Year 2026-27 in new terminology) — when you’ll use new forms + new section numbers.
The official primary-source utility
CBDT has published an Utility to check provisions of Income-tax Act 1961 vis-à-vis Income-tax Act 2025 on the official ITD portal. For any specific section not covered in the table above, use the utility to find the corresponding section in the new Act. This is the canonical mapping source — secondary-source mapping tables (PwC / KPMG / ClearTax summaries) can be useful for reference but should be verified against the ITD utility for compliance-critical work.
For the full text of the IT Act 2025, see the official Act text on the ITD portal.
How BatchWise positions on the transition
BatchWise does not file ITRs or sign tax-audit reports — that’s the partner CA firm’s role under any of our coordination services. What we do:
- Our content (TDS section pages, tax audit references, etc.) carries the section-mapping callout flagging the IT Act 2025 transition for any reader filing TY 2026-27 onwards
- For ongoing SME compliance subscriptions, the partner CA firm handles the transition seamlessly — Q4 FY 2025-26 TDS returns under the old Act, Q1 TY 2026-27 onwards under the new Act
- Investment declarations + payroll system updates (Section 80C → 123 + Schedule XV) are not our scope but flagged for our SME subscription clients
For specific tax-position advice on the transition (election under new optional schemes, treatment of pending appeals, loss carry-forward across the regime change, transfer pricing implications), engage a CA firm with international-tax + transition-specialist depth directly.
Frequently asked questions
When did the Income Tax Act 1961 get repealed and the new Act come into force?
The Income-tax Act, 1961 stands repealed effective **1 April 2026** pursuant to **Section 536 of the Income-tax Act, 2025** (verified from the e-Filing portal homepage). The Income-tax Act, 2025 came into force on the same date. Income earned up to 31 March 2026 (FY 2025-26 / AY 2026-27) remains governed by the 1961 Act and is assessed under the 1961 framework. Income earned from 1 April 2026 onwards (TY 2026-27 in new terminology) is governed by the 2025 Act.
What is the 'Tax Year' concept and how does it differ from 'Assessment Year'?
Per CBDT's FAQs on Interplay and Transition: 'The concept of Tax Year is applicable from 01 April 2026, i.e., for income earned during FY 2026-27 onwards and this will be referred to as Tax Year 2026-27 under the Income Tax Act 2025. Tax Year concept under the new Act corresponds to Previous Year concept under the Income-tax Act 1961.' The term 'Assessment Year' (AY) has been **discontinued** under the new Act. Tax for a Tax Year is assessed after the end of that Tax Year, similar to the existing system but with new naming. For most practitioners the simplest mapping is: old Previous Year (FY) = new Tax Year (TY); old Assessment Year is dropped from the new Act vocabulary.
How do TDS sections 192, 194C, 194J, 194T (and others) map to the new Act?
Per CBDT's FAQs (Q&A on TDS Compliance, section 6 of the FAQ document): **All TDS sections (Section 192 to 194T) in the Income Tax Act, 1961 are now consolidated under two sections, section 392 and section 393 of the Income Tax Act, 2025.** Section 392 deals with TDS on Salaries (corresponding to old Section 192). Section 393 deals with TDS on all other non-salary payments — commission, brokerage, rent, contractor payments, professional fees, partner remuneration, transfer of immovable property, etc. — presented in a simplified tabular format with three tables for three broad payee categories. Old TDS rates and thresholds remain substantively the same; only the section numbering and structure has changed. **Critically: for transactions on or after 1 April 2026, deductors must quote the new section numbers (393 / 394 for TCS) — quoting old 194C / 194J / 194H etc. may result in system-level validation errors.**
What about Section 195(6) on foreign payment reporting (Form 15CA / 15CB)?
Per CBDT FAQ: Section 195(6) of the 1961 Act (TDS reporting obligation on foreign remittances) corresponds to **Section 397(3)(d) of the Income-tax Act, 2025**. The forms have also been renumbered: **Form 15CA → Form 145** and **Form 15CB → Form 146**. The substantive content and procedural requirement (declarant filing + CA-signed certificate) remains the same. For remittances on or after 1 April 2026, use the new Form 145 + Form 146 via the e-Filing portal.
What about Section 44AB (tax audit) and Section 44AD / 44ADA (presumptive)?
Per CBDT FAQ Q4.32 and Q2.20: **Section 44AB of the 1961 Act corresponds to Section 63 of the Income-tax Act, 2025.** The tax-audit thresholds remain unchanged: business turnover >₹1 crore (or >₹10 crore where cash receipts ≤5%); professional gross receipts >₹50 lakh (>₹75 lakh where cash receipts ≤5%). For Tax Year 2026-27, tax audit applies as it did under the old Act. **The tax audit report for AY 2026-27 (last AY under the 1961 Act) is due 30 September 2026** under Form 3CA/3CB + 3CD. **Section 44AD / 44ADA (presumptive taxation for business / profession) correspond to Section 58 of the Income-tax Act, 2025.** Advance tax under presumptive scheme is governed by Section 408(2) — single instalment due 15 March of the financial year. Thresholds and deemed-profit percentages remain the same.
What about Section 80C, 80D, 80E and other deductions?
Per CBDT FAQ Q8.10: **Section 80C of the 1961 Act becomes Section 123 of the Income-tax Act, 2025, with the eligible instruments listed in Schedule XV.** The ₹1.5 lakh aggregate deduction limit for specified savings instruments (life insurance, PF, tuition fees, ELSS, etc.) is retained unchanged. The structural simplification: deductions previously scattered across Chapter VI-A of the 1961 Act are now consolidated under Chapter VIII of the 2025 Act with specific sections (123 series). **Important rule:** Under Section 122(5) of the 2025 Act, **timely furnishing of return is mandatory for claiming deductions under Part C of Chapter VIII** — late returns may forfeit the deduction. Investment declarations for Tax Year 2026-27 should reference the new section numbers (e.g. cite 'Section 123 read with Schedule XV' instead of 'Section 80C').
What's the timing pivot — when do I quote old vs new section numbers on returns and certificates?
Per CBDT FAQ Q6 series: the pivot is **1 April 2026**. **For TDS quarterly returns (Forms 24Q / 26Q / 27Q / 27EQ):** Q4 FY 2025-26 (Jan-Mar 2026 transactions) is filed under IT Act 1961 using the old forms; due 31 May 2026. Q1 TY 2026-27 (Apr-Jun 2026 transactions) is filed under IT Act 2025 using new forms under IT Rules 2026; due 31 July 2026. **For deductor-side compliance:** transactions on or before 31 March 2026 quote old section numbers (194C, 194J, 194T, 195, etc.); transactions on or after 1 April 2026 must quote new section numbers (393 / 394). **For ITR filing:** ITR for FY 2025-26 (filed by July-Oct 2026) is filed under IT Act 1961. ITR for TY 2026-27 (filed July-Oct 2027) is filed under IT Act 2025 using new Forms per Notification No. 22/2026.
What new forms have been notified under the IT Act 2025?
Per the e-Filing portal homepage and Notification No. 22/2026: New ITR forms applicable for Tax Year 2026-27 onwards are live on the e-Filing portal. Form-by-form correspondence: **Form 27Q → Form 144** (foreign payment TDS quarterly statement), **Form 15CA → Form 145** (foreign remittance declarant declaration), **Form 15CB → Form 146** (CA-signed certificate on foreign remittance), plus a new integrated payment module on the e-Filing portal that handles challans under both the 1961 Act (for FY 2025-26 dues) and the 2025 Act (for TY 2026-27 onwards). Form No. 105 (replacing old Form 10AB) is also live. Access new forms via the e-Filing portal: e-File → Income Tax Forms → File Income Tax Forms → Forms under Income Tax Act, 2025.
Does the IT Act 2025 change tax rates, slabs, or substantive policy?
Per CBDT's stated objective and Q1 of the transition FAQ: **No. The 2025 Act is primarily a structural rewrite — simplification, consolidation, removal of obsolete provisions. Substantive policy (rates, slabs, deductions, deemed-profit percentages, thresholds) is largely unchanged.** Examples confirmed in FAQ: TDS rates and thresholds under Section 393 mirror the corresponding 1961 provisions; tax-audit thresholds under Section 63 are identical to Section 44AB; Section 123 retains the ₹1.5 lakh Section 80C limit. Where amendments to specific provisions were made in tandem with the 2025 Act, they apply substantively from 1 April 2026 — but the bulk of the policy lift was structural, not substantive. **Existing circulars and rulings under the 1961 Act continue to apply to corresponding provisions in the 2025 Act where intent remains unchanged** (per CBDT FAQ Q1.21: 'A circular clarifying the term work under section 194C of the old Act will continue to apply to section 393 of the ITA 2025, where the intent remains unchanged').
What if I'm filing for FY 2025-26 (AY 2026-27) — do I need to do anything differently?
For FY 2025-26 (AY 2026-27) filing — which is the last AY cycle under the 1961 Act — **nothing changes in substance**. File ITR under the IT Act 1961 using the existing forms (ITR-1, ITR-2, ITR-3, ITR-4, etc. as applicable for AY 2026-27), as published under 'Forms as per Income-tax Act, 1961' on the e-Filing portal from 1 April 2026. Tax audit report for AY 2026-27 due 30 September 2026 under Form 3CA/3CB + 3CD. Section references in your return remain 1961 Act numbering (Section 80C, 80D, 44AB, 194C, etc.). The transition affects you only from FY 2026-27 onwards (Tax Year 2026-27 in new terminology) — when you'll use new forms + new section numbers.