The Income Tax Act 2025 is India's new income tax law, in force from 1 April 2026, and it applies to all income earned in tax year 2026-27 onward. It rewrites the 1961 Act in simpler language with 536 sections, 23 chapters and 16 schedules, but it keeps the slabs, rates and most limits the same.
The biggest visible change is the word tax year, which replaces the pair of previous year and assessment year. Income of FY 2025-26 still follows the Income-tax Act, 1961, so returns filed in AY 2026-27 use the old law. This hub covers the structure of the new Act, the section numbers that moved, and the full list of guides in this group.
Quick facts
In force from
1 April 2026Applies to
Income of tax year 2026-27 onwardSize
536 sections, 23 chapters, 16 schedulesYear concept
Tax year (one period, 1 April to 31 March)TDS and TCS
Section 392 salary, 393 other TDS, 394 TCSRebate
Section 156, up to ₹60,000 in the new regimeRules
Income-tax Rules, 2026, made under section 533Repeal and savings
Section 536
Income Tax Act 2025 at a glance
The new income tax act began as the Income-tax Bill placed before Parliament. After review by a Select Committee of Parliament, a revised Bill was passed and received assent, and the government notified 1 April 2026 as the start date. The aim was a shorter, plainer law with fewer cross-references, tables in place of long provisos, and obsolete sections removed.
| Feature | 1961 Act | 2025 Act |
|---|---|---|
| Applies to income of | FY 2025-26 and earlier | Tax year 2026-27 onward |
| Year terms | Previous year and assessment year | Tax year |
| Size | Hundreds of sections added with letters over the years | 536 sections, 23 chapters, 16 schedules |
| Exemptions | Mostly in section 10 | Section 11 read with Schedules II to VII |
| TDS | Separate sections 192 to 196D | Section 392 for salary; one table in section 393 |
| Rules | Income-tax Rules, 1962 | Income-tax Rules, 2026 |
| Slabs and rates | Set for FY 2025-26 | Carried over unchanged for tax year 2026-27 |
Pages in the Acts and notices group
| Guide | Question it settles |
|---|---|
| Income Tax Act, 1961 | How the old law is arranged and when it still applies |
| Income tax rules | What the Income-tax Rules, 2026 changed, including new form numbers |
| Income tax notices | Each common notice and how to respond |
| Scrutiny assessment | How a return is examined in detail |
| Section 139(1) filing duty | Who must file and the due dates |
| Appeals (CIT(A), ITAT) | Steps to appeal against an order |
New section numbers you will meet first
| Rule | 1961 Act | 2025 Act |
|---|---|---|
| TDS on salary | 192 | 392 |
| TDS on other payments (contractors, rent, fees, interest and more) | 193 to 196D | Table in section 393 |
| Tax collected at source | 206C | 394 |
| Rebate for resident individuals | 87A | 156 |
| Investments deduction (PPF, ELSS, insurance) | 80C | 123, read with Schedule XV |
| Health insurance premium | 80D | 126 |
| Donations | 80G | 133 |
| Deduction only on actual payment | 43B | 37 |
| Gifts and other sources | 56 | 92 |
| Agricultural income exemption | 10(1) | 11, with Schedule II |
| Repeal and savings | None | 536 |
If a section is not in this table, do not guess its new number from a third-party list. Check the official text, because several numbers changed between the Bill and the final Act.
TDS section as per Income Tax Act 2025
The old TDS chapter had one section per payment. The new Act puts most of them in tables inside section 393, which is why people search for section 393(1) and 393(2) of the 2025 Act.
- Section 393(1) of Income Tax Act 2025: payments to residents, such as contract work, rent, professional fees, commission and interest.
- Section 393(2): payments to non-residents, which earlier fell under section 195.
- Section 393(3): payments to any person, such as lottery winnings and large cash withdrawals.
- Later parts of section 393: cases where no TDS is needed, including declarations in Form 121 that replace Forms 15G and 15H.
Salary TDS sits apart in section 392, and the certificate for it is Form 130 for tax year 2026-27, in place of Form 16. See the TDS rate chart for rates and the Form 16 hub for certificates.
What changed for an ordinary taxpayer
| Item | FY 2025-26 (1961 Act) | Tax year 2026-27 (2025 Act) |
|---|---|---|
| New regime slabs | Nil to ₹4 lakh, then 5% up to 30% above ₹24 lakh | Same slabs |
| Rebate | Up to ₹60,000 under 87A; no tax up to ₹12 lakh | Up to ₹60,000 under section 156 |
| Standard deduction (salary) | ₹75,000 new regime, ₹50,000 old | Same amounts |
| Salary TDS certificate | Form 16 | Form 130 |
| Declaration for nil TDS on interest | Form 15G or 15H | Form 121 |
| Proof of claims to employer | Form 12BB | Form 124 |
| Return filed in | AY 2026-27 | After the end of tax year 2026-27 |
Same salary, two laws. Ritu earns a salary of ₹12,50,000 in FY 2025-26 and the same in tax year 2026-27, both under the new regime. Each year: ₹12,50,000 less ₹75,000 = ₹11,75,000 taxable. Slab tax is ₹20,000 + ₹37,500 = ₹57,500, fully wiped out by the rebate. Tax payable: nil in both years. Only the section quoted changes, 87A in the first year and 156 in the second.
Income tax act 2025 applicability: the transition rules
Section 536 repeals the 1961 Act but saves everything done or due under it. That means returns, assessments, penalties and appeals for AY 2026-27 and earlier continue under the old law, even when the work happens after 1 April 2026. The test is the year the income belongs to.
| Case | Law |
|---|---|
| Return for FY 2025-26 | 1961 Act |
| TDS on a bill credited on 5 April of tax year 2026-27 | 2025 Act, section 393 |
| Notice about AY 2024-25 | 1961 Act |
| Advance tax instalments for tax year 2026-27 | 2025 Act |
Where to get the income tax act 2025 pdf
- Visit incometaxindia.gov.in, the department's site for Acts, rules and circulars.
- Open the Acts area of the tax laws section and pick the Income-tax Act, 2025.
- Find a section by its number, or save the whole text as a PDF.
- Forms and procedure live in the Income-tax Rules, 2026, listed there as well.
- For filing or paying, use the e-filing portal, not the law website.
Printed books of the bare act exist, but the department's online text is the reference point and is free.
Mistakes during the switch to the new Act
| Error | Fix |
|---|---|
| Citing section 393 in a reply about an FY 2025-26 return | Use the old Act's section for that year |
| Issuing Form 16 for tax year 2026-27 salary | Issue Form 130 |
| Collecting Form 15G for interest paid after 1 April 2026 | Collect Form 121 |
| Trusting an unofficial mapping list | Check the Act text for each new number |
This overview of the new law is general information for readers, not advice. Notifications and clarifications keep arriving, so check the official sites or a chartered accountant for your own situation.
Sources we checked
- Income-tax Act, 2025, sections 392, 393, 394 and 536
- Income-tax Act, 2025, section 156
- Income-tax Rules, 2026
Frequently asked questions
When does the Income Tax Act 2025 apply?
It applies from 1 April 2026, to income of tax year 2026-27 and later years. Income of FY 2025-26 is still taxed under the 1961 Act.
What is a tax year under the new income tax act?
A tax year is the 12 months from 1 April to 31 March in which income is earned. It takes the place of the old two-label system.
Which payments sit in section 393 of Income Tax Act 2025?
It holds the main TDS tables: 393(1) for payments to residents, 393(2) for non-residents and 393(3) for payments to any person, with later parts listing cases where no TDS is needed.
Did tax slabs change under the new income tax act 2025?
No. The new regime slabs, the ₹60,000 rebate and the standard deduction carry over unchanged for tax year 2026-27.
Is the income tax bill the same as the new Act?
The Bill was reviewed by a Select Committee and a revised version was passed. Section numbers in the final Act can differ from the Bill, so always cite the Act.