Income-tax Act, 2025 vs 1961: new section numbers for 80C, 87A, 115BAC, 139 and more
Where 80C, 87A, 115BAC, 139 and other familiar sections moved in the Income-tax Act, 2025, and what the new tax year concept means.
The Income-tax Act, 2025 took effect on 1 April 2026 and renumbered almost every provision of the 1961 Act. For individuals, the sections you will meet most are: section 202 (new regime, formerly 115BAC), section 156 (rebate, formerly 87A), section 19 (salary deductions including the standard deduction, formerly 16), section 123 (investment deduction, formerly 80C), section 126 (health insurance, formerly 80D), section 196/197/198 (capital gains rates, formerly 111A/112/112A) and section 263 (filing returns, formerly 139). The amounts in these provisions are largely unchanged. Old section numbers remain correct for income up to FY 2025-26, which is still governed by the 1961 Act.
This guide is a reference table plus an explanation of the concepts that changed. Where we could not confirm a sub-section number, we name the provision in words.
The "tax year" replaces previous year and assessment year
Under the 1961 Act, income earned in a previous year (say FY 2025-26) was assessed in the following assessment year (AY 2026-27). Taxpayers often confused the two when choosing return forms and paying challans.
The 2025 Act uses one term, the tax year. It is the twelve months from 1 April to 31 March. For a business or new source of income that starts during a year, it runs from that start date to 31 March. So:
| Income earned | 1961 Act label | 2025 Act label | Return filed in |
|---|---|---|---|
| April 2025 – March 2026 | FY 2025-26 / AY 2026-27 | (1961 Act still applies) | 2026 |
| April 2026 – March 2027 | – | Tax year 2026-27 | 2027 |
| April 2027 – March 2028 | – | Tax year 2027-28 | 2028 |
The Income Tax Department's e-filing portal has a payment module that handles dues under the 1961 Act (up to FY 2025-26) and under the 2025 Act (from tax year 2026-27) through one interface. When paying, pick the correct Act and year.
Section map for individual taxpayers
| Topic | Income-tax Act, 1961 | Income-tax Act, 2025 |
|---|---|---|
| New tax regime (default) | 115BAC | 202 |
| Rebate for residents | 87A | 156 |
| Relief for salary arrears | 89 | 157 |
| Salary deductions (standard deduction, professional tax) | 16 | 19 |
| House property deductions (30%, interest) | 24 | 22 |
| Presumptive income for small business and professionals | 44AD, 44ADA | 58 |
| Exemption on sale of a house reinvested in a house | 54 | 82 |
| Exemption on sale of other assets reinvested in a house | 54F | 86 |
| Set-off and carry-forward of losses | 70–80 | 108–121 |
| Investment deduction (PF, PPF, ELSS, life insurance, etc.) | 80C | 123 |
| NPS contributions | 80CCD | 124 |
| Agniveer corpus fund | 80CCH | 125 |
| Health insurance and check-ups | 80D | 126 |
| Disabled dependant | 80DD | 127 |
| Specified diseases | 80DDB | 128 |
| Education loan interest | 80E | 129 |
| Donations | 80G | 133 |
| Rent paid without HRA | 80GG | 134 |
| Savings/deposit interest | 80TTA, 80TTB | 153 |
| Person with disability | 80U | 154 |
| STCG on listed equity (STT paid) | 111A | 196 |
| LTCG on other assets | 112 | 197 |
| LTCG on listed equity (STT paid) | 112A | 198 |
| Return of income, belated, revised and updated returns | 139 | 263 |
| Tax on updated return | 140B | 267 |
| TDS on salary | 192 | 392 |
| Most other TDS (interest, rent, fees, property) | 193–196D | 393 (single table) |
| Advance tax: liability and instalments | 207–211 | 404, 408 |
| Interest for late return | 234A | 423 |
| Interest for advance tax default | 234B | 424 |
| Interest for deferring instalments | 234C | 425 |
| Fee for late return | 234F | 428 |
Sub-sections inside these sections are also renumbered. For example, the new regime rules that switch off deductions are in section 202(2), and employer NPS is in section 124(2). Where an article on this site refers to a provision without a number, it is because we have not confirmed its exact location in the new Act.
What stayed the same in substance
- New regime slabs, the ₹60,000 rebate up to ₹12 lakh of total income, and the ₹75,000 standard deduction.
- Old regime slabs, the ₹12,500 rebate up to ₹5 lakh, and the ₹50,000 standard deduction.
- The ₹1.5 lakh investment deduction limit and the list of eligible investments.
- Capital gains rates: 20% short term on listed equity, 12.5% long term with a ₹1.25 lakh yearly exemption on listed equity.
- Advance tax instalment dates and the ₹10,000 threshold.
- Late fee of ₹5,000 (no more than ₹1,000 if total income is up to ₹5 lakh).
What changed in practice
- Forms. The Income-tax Rules made under the new Act renumber forms. The salary TDS certificate, the self-declaration for no TDS on interest and the tax credit statement may carry new numbers. Read the name of the form, not just the number.
- TDS structure. Instead of a separate section for each payment, section 393 lists payments, thresholds and rates in a table. The amounts most individuals deal with were carried over, but check the table for your payment.
- Language. Many provisos and explanations have been turned into tables and schedules, which makes conditions easier to find.
How to use the map without mistakes
- Check the year first. A notice or return for AY 2026-27 or earlier uses 1961 Act numbers. Anything for tax year 2026-27 onwards uses 2025 Act numbers.
- Do not mix them. A tax-saving receipt that says "eligible under 80C" is still valid for section 123. The investment qualifies, not the label.
- Confirm on the official text. The Income Tax Department publishes the text of the Act on its website. Check the section there before quoting it in a reply to a notice.
Related guides: tax year 2026-27 overview, deductions under the 2025 Act, capital gains rates and TDS and TCS basics.
When to consult a professional
If you are replying to a notice, have a loss carried forward from a year under the old Act, or have a transaction that spans 31 March 2026 (for example a property sale agreement signed before and registered after), ask a chartered accountant how the transition rules apply.
Frequently asked questions
Is the 1961 Act completely repealed?
The 2025 Act repealed it with savings: proceedings and liabilities for earlier years continue under the old law.
Will my old 80C investments still count?
Yes. PPF, ELSS, life insurance and other investments that qualified under 80C qualify under section 123 for tax year 2026-27, within the same ₹1.5 lakh limit.
Is the assessment year still printed on challans?
For dues under the 1961 Act, yes. For the 2025 Act the portal asks for the tax year.
Sources
- Income Tax Department: text of the Income-tax Act, 2025, rules and comparison material for the 1961 Act
- Income Tax e-filing portal: tax payment module covering both Acts
- e-Gazette of India: official notification of the Act and rules
- India Code: consolidated text of central legislation
