The Income Tax Act 2025, explained
India is replacing the Income Tax Act, 1961 with the Income Tax Act, 2025, effective 1 April 2026. It is the biggest change to direct tax in a generation, new terminology, renumbered sections, renamed forms, but for most people the tax itself does not change. This hub breaks the whole transition down, one topic at a time, in plain language.
The five things to understand
Income Tax Act 2025: What Actually Changes
The plain-language overview. What the new Act changes, what stays the same (your rates do not), and the transition timeline to 1 April 2026.
Read guideOld vs New Section Numbers: Mapping Table
The complete lookup table. 80C to 123, 80D to 126, 44AB to 63, Section 10 to Schedule II, and every other renumbered provision in one place.
Read guideTax Year vs Financial Year vs Assessment Year
The new Act replaces the Financial Year and Assessment Year with a single Tax Year from 1 April 2026. What that means and how old years map across.
Read guideSection 80C is Now Section 123
Your favourite deduction gets a new number and a wider scope. What moved into Section 123, what the new NPS number is, and the mistakes to avoid.
Read guideForm 16 Becomes Form 130
The salary TDS certificate is renamed, and 24Q, 16A, 12BB and 26AS all change too. What employers and employees should expect, and when.
Read guideThe transition timeline
The new Act does not affect the return you file in 2026. For income earned in FY 2025-26 (the return due by 31 July 2026), the Income Tax Act, 1961 still applies, old section numbers, Form 16, the familiar Assessment Year. The Income Tax Act, 2025 takes effect from 1 April 2026, so it governs income earned from Tax Year 2026-27 onward. In short: this filing season is business as usual; the change lands next year.
If you would rather not track any of it, that is what we are for. Our income tax and ITR service handles your filing under whichever Act applies, and our tax guides cover the rest of the picture, from ITR filing to GST and company compliance.