The Income Tax Act 1961 is the law that charged and collected income tax in India for more than six decades, and it still governs all income earned up to the end of FY 2025-26, which means every return for that year filed in AY 2026-27. From 1 April 2026 it was repealed and replaced by the Income-tax Act, 2025, with savings that keep it alive for earlier years.
So you will deal with both laws for some time: the 1961 Act for the FY 2025-26 return, pending assessments and old notices, and the 2025 Act for tax year 2026-27. This hub explains how the old Act is arranged, lists the sections people look up most, and links to every page in our Acts and notices group.
Quick facts
Applies to
Income up to FY 2025-26 (AY 2026-27 and earlier)Replaced by
Income-tax Act, 2025, from 1 April 2026Year concept
Previous year and assessment yearRules under it
Income-tax Rules, 1962Amended by
A Finance Act each year, plus other amending ActsOfficial text
incometaxindia.gov.in, Acts sectionReturn filing duty
Section 139(1)
How the Income Tax Act 1961 is arranged
The Act runs in chapters, each covering one stage of the tax journey: what is income, how it is grouped, what is exempt, what is deducted, how tax is collected, and how disputes are settled. Many sections were added over the years with letters, such as 80C, 80CCD or 115BAC, which is why the numbering looks crowded. The text with no commentary is what people call the income tax bare act.
| Stage | Main sections (1961 Act) | What they do | 2025 Act home |
|---|---|---|---|
| Definitions and charge | 2, 4, 5 | Define income, person, assessee; charge tax on total income | Early chapters |
| Residence | 6 | Resident, non-resident, not ordinarily resident | Carried over |
| Exempt income | 10, 10AA, 11 | Farm income, allowances, SEZ units, charitable trusts | Section 11 with Schedules II to VII |
| Heads of income | 14 to 59 | Salary, house property, business (28 to 44DB), capital gains (45 to 55A), other sources (56 to 59) | Same five heads; other sources in section 92 |
| Clubbing and set-off | 60 to 80 | Income of others added to yours; losses carried forward | Carried over |
| Deductions | 80C to 80U | 80C, 80D, 80G and the rest | 80C in 123, 80D in 126, 80G in 133 |
| Rebate and reliefs | 87A, 89, 90, 91 | Rebate, arrears relief, tax treaty relief | 87A in section 156 |
| Special rates and regimes | 111A, 112A, 115BAC, 115BBE, 115JC | Equity gains, new regime, unexplained income, AMT | Carried over |
| Returns and assessment | 139 to 158 | Filing, scrutiny, reassessment, demand | Assessment chapter |
| TDS and TCS | 192 to 206C | Deduction and collection at source | 392, 393 and 394 |
| Interest, fees, penalties | 234A to 234F, 270A onward | Late payment interest, late fee, penalty | Carried over |
| Appeals | 246A to 262 | CIT(A), ITAT, High Court | Appeals chapter |
Pages in this group
| Page | What it answers |
|---|---|
| Income Tax Act, 2025 | What the new law changed and the new section numbers |
| Income tax rules | The old and new Income-tax Rules and the forms they set |
| Income tax notices | Why a notice came and how to reply |
| Scrutiny assessment | How a 143(3) case runs and its time limits |
| Section 139(1) filing duty | Who must file a return and by when |
| Appeals (CIT(A), ITAT) | How to challenge an order |
Sections of the income tax act people look up most
| Section | What it says in one line |
|---|---|
| Section 28 | Income charged under business or profession |
| Section 37 | General deduction for business expenses not covered elsewhere |
| Section 40A(2)(b) | Excess payments to relatives or related concerns can be disallowed |
| Section 41 | Remission of a liability already claimed becomes income |
| Section 44AA | Who must keep books of account, by profession or income level |
| Section 50C | Stamp duty value used as sale price for land or buildings |
| Section 80JJAA | Extra deduction for the cost of new employees |
| Section 89 | Relief when salary arrears push you into a higher slab, claimed with Form 10E |
| Section 89A | Relief on income from specified foreign retirement accounts |
| Section 90 | Relief under a tax treaty with another country |
| Section 92E | Transfer pricing report by an accountant |
| Section 115BBE | Unexplained cash, credits or investments taxed at 60% plus surcharge and cess |
| Section 115JC | Alternate minimum tax on some non-corporate taxpayers |
| Section 143(2) | Notice that selects a return for scrutiny |
| Section 144B | Faceless assessment procedure |
| Section 147 | Reassessment of income that escaped tax |
| Section 245 | Refund adjusted against an outstanding demand |
| Section 250 | How a CIT(A) hears and decides an appeal |
TDS new section list: where the old TDS sections went
Searches for a TDS new section list for FY 2026-27 come from accounts teams moving their software and challans to the new Act. The good news is that rates and limits largely carried over. The numbers changed.
| 1961 Act sections | What they cover | 2025 Act |
|---|---|---|
| 192 | TDS on salary | Section 392 |
| 193, 194, 194A | Interest on securities, dividends, other interest | TDS table under section 393 |
| 194C, 194H, 194I, 194J | Contractors, commission, rent, professional fees | TDS table under section 393 |
| 194Q, 194O, 194R, 194S, 194T | Goods purchase, e-commerce, benefits, crypto, partner payments | TDS table under section 393 |
| 195 | Payments to non-residents | TDS table under section 393 |
| 206C | Tax collected at source | Section 394 |
For FY 2025-26 payments, rates such as 10% on dividends above ₹10,000 under section 194 and 10% on interest on securities under section 193 of Income Tax Act 1961 still come from the 1961 Act. The full rate list is on the TDS rate chart.
Which law applies: the 1961 Act or the 2025 Act
| Situation | Law that applies |
|---|---|
| Return of income for FY 2025-26, filed in AY 2026-27 | 1961 Act |
| Belated, revised or updated return for AY 2026-27 or earlier | 1961 Act |
| Scrutiny, reassessment or penalty for those years | 1961 Act, procedure under its savings clause |
| TDS on a payment credited or made on or after 1 April 2026 | 2025 Act |
| Income earned in tax year 2026-27 | 2025 Act |
The cut-off works on the year the income belongs to, not the date you file. A return filed late in the next year for FY 2025-26 still follows the 1961 Act.
Reading the income tax act 1961 pdf and bare text
- Open the Income Tax Department's law website at incometaxindia.gov.in.
- Go to the Acts part of the tax laws section and choose the Income-tax Act, 1961.
- Search by section number, such as 44AA or 50C, and select the version that applies to the year you need.
- Read the provisos and explanations under the section, since they often hold the exception that matters.
- For a related rule or form, open the Income-tax Rules, 1962 on the same site.
The site shows the amended text. Commentary books add case law, but the bare act is the authority.
Mistakes when using the old Act
| Error | Better approach |
|---|---|
| Quoting a 2025 Act section in a reply about AY 2026-27 | Use the 1961 Act section for that year |
| Using 194C in a challan for a payment made after 1 April 2026 | Use the new section 393 code |
| Reading an old copy of a section | Check the version for the year in question; Finance Acts amend sections every year |
| Assuming old notices lapse with the repeal | Proceedings for past years continue under the savings clause |
This hub summarises the 1961 Act for general reference only. Sections are amended often, so confirm the current text on the official tax law website or with a chartered accountant.
Sources we checked
- Income-tax Act, 1961
- Income-tax Act, 2025, section 536
- Income-tax Rules, 1962
Frequently asked questions
Is the Income Tax Act 1961 still in force?
It was repealed from 1 April 2026, but it continues to apply to income of FY 2025-26 and earlier years, including returns, assessments and appeals for those years.
What is section 44AA of the Income Tax Act?
It sets out who must maintain books of account. Specified professionals and businesses above set income or turnover levels must keep them, and the rules list the books needed.
What is section 144B of the Income Tax Act?
It is the faceless assessment procedure, under which scrutiny is done online through the e-filing portal without meeting the officer in person.
Where can I read the income tax bare act?
The full amended text of both the 1961 Act and the 2025 Act is on the Income Tax Department's law website, incometaxindia.gov.in, free of charge.
What is section 89 of the Income Tax Act?
Section 89 gives relief when arrears of salary or similar income received in one year would push you into a higher slab. You claim it by filing Form 10E before the return.
What is section 250 of the Income Tax Act?
It sets the procedure the CIT(A) follows to hear and decide an appeal, including giving both sides a hearing.