The Income-tax Act, 2025 is India’s new tax law. It has been designed to make tax rules easier to follow and more suitable for today’s economy. At the same time, many of its rules are built on the older Income-tax Act, 1961, which guided taxation for many years.
This article, “Sections of the Income-tax Act, 2025 vs. Income-tax Act, 1961,” sets out a clear comparison between the two Acts.
By showing the parallel sections side by side, it helps us understand what has stayed the same, what has changed, and what has been improved.
The aim is to give students, professionals, and policymakers a simple way to see how the new law connects with the old one.
CHAPTER I – PRELIMINARY
| Section Numbers of the Income-tax Act, 2025 | Section Heading | Parallel Section(s) of Income-tax Act, 1961 |
| 1 | Short title, extent and commencement | 1 |
| 2 | Definitions | 2 |
| 3 | Definition of “tax year” | 3 |
CHAPTER II – BASIS OF CHARGE
| Section Numbers of the Income-tax Act, 2025 | Section Heading | Parallel Section(s) of Income-tax Act, 1961 |
| 4 | Charge of income-tax | 4 |
| 5 | Scope of total income | 5 |
| 6 | Residence in India | 6 |
| 7 | Income deemed to be received and dividend deemed to be income in a tax year | 7 |
| 8 | Income on receipt of capital asset or stock in trade by specified person from specified entity | 9B |
| 9 [Read with Schedule I] | Income deemed to accrue or arise in India | 9A |
| 10 | Apportionment of income between spouses governed by Portuguese Civil Code | 5A |
CHAPTER III – INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME
| Section Numbers of the Income-tax Act, 2025 | Chapter No., Chapter Heading and Section Heading | Parallel Section(s) of Income-tax Act, 1961 |
| A. | Incomes not to be included in total income | |
| 11 [Read with Schedules II to VII] | Incomes not included in total income | 10 |
| B. | Incomes not to be included in total income of political parties and electoral trusts | |
| 12 [Read with Schedule VIII] | Incomes not included in total income of political parties and electoral trusts | 13A, 13B |
CHAPTER IV – COMPUTATION OF TOTAL INCOME
| Section Number of the Income-tax Act, 2025 | Section heading | Parallel Section(s) of Income-tax Act, 1961 |
| [13–14] | A. Heads of income | — |
| 13 | Heads of income | 14 |
| 14 | Income not forming part of total income and expenditure in relation to such income | 14A |
| [15–19] | B. Salaries | — |
| 15 | Salaries | 15 |
| 16 | Income from salary | 17 |
| 17 | Perquisite | 17 |
| 18 | Profits in lieu of salary | 17 |
| 19 | Deductions from salaries | 10(1), 10(10A), 10(10AA), 10(10B), 10(10C), 16 |
| [20–25] | C. Income from house property | — |
| 20 | Income from house property | 22 |
| 21 | Determination of annual value | 23 |
| 22 | Deductions from income from house property | 24 |
| 23 | Arrears of rent and unrealised rent received subsequently | 25A |
| 24 | Property owned by co-owners | 26 |
| 25 | Interpretation | 27 |
| [26–66] | D. Profits and gains of business or profession | — |
| 26 | Income under head “Profits and gains of business or profession” | 28 |
| 27 | Manner of computing profits and gains of business or profession | 29 |
| 28 | Rent, rates, taxes, repairs and insurance | 30 |
| 29 | Deductions related to employee welfare | 31 |
| 30 | Deduction on certain premium | 36 |
| 31 | Deduction for bad debt and provision for bad and doubtful debt | 36 |
| 32 | Other deductions | 37 |
| 33 | Deduction for depreciation | 32 |
| 34 | General conditions for allowable deductions | 37 |
| 35 | Amounts not deductible in certain circumstances | 40 |
| 36 | Expenses or payments not deductible in certain circumstances | 40A |
| 37 | Certain deductions allowed on actual payment basis only | 43B |
| 38 | Certain sums deemed as profits and gains of business or profession | 41 |
| 39 | Computation of actual cost | 43 |
| 40 | Special provision for computation of cost of acquisition of certain assets | 43C |
| 41 | Written down value of depreciable asset | 43 |
| 42 | Capitalising impact of foreign exchange fluctuation | 43A |
| 43 | Taxation of foreign exchange fluctuation | 43AA |
| 44 | Amortisation of certain preliminary expenses | 35D |
| 45 [Read with Schedule XIII] | Expenditure on scientific research | 35 |
| 46 | Capital expenditure of specified business | 35AD |
| 47 | Expenditure on agricultural extension project and skill development project | 35CCC, 35CCD |
| 48 [Read with Schedule IX] | Tea development account, coffee development account and rubber development account | 33AB |
| 49 [Read with Schedule X] | Site Restoration Fund | 33ABA |
| 50 | Special provision in case of trade, profession or similar association | 44A |
| 51 [Read with Schedule XI] | Amortisation of expenditure for prospecting certain minerals | 35E |
| 52 | Amortisation of expenditure for telecommunications services, amalgamation, demerger, scheme of voluntary retirement, etc. | 35ABA, 35ABB, 35DD, 35DDA |
| 53 | Full value of consideration for transfer of assets other than capital assets in certain cases | 43CA |
| 54 | Business of prospecting for mineral oils | 42 |
| 55 [Read with Schedule XIV] | Insurance business | 44 |
| 56 | Special provision in case of interest income of specified financial institutions | 43D |
| 57 | Revenue recognition for construction and service contracts | 43CB |
| 58 | Special provision for computing profits and gains of business or profession on presumptive basis in case of certain residents | 44ADA |
| 59 | Computation of royalty and fee for technical services in hands of non-residents | 44DA |
| 60 | Deduction of head office expenditure in case of non-residents | 44C |
| 61 | Special provision for computation of income on presumptive basis in respect of certain business activities of certain non-residents | 44B, 44BB, 44BBA, 44BBC, 44BD |
| 62 | Maintenance of books of account | 44AA |
| 63 | Tax Audit | 44AB |
| 64 | Special provision for computing deductions in case of business reorganisation of co-operative banks | 44DB |
| 65 | Interpretation for purpose of section 64 | — |
| 66 | Interpretation | 28 to 44DA |
| [67–91] | E. Capital gains | — |
| 67 | Capital gains | 45 |
| 68 | Capital gains on distribution of assets by companies in liquidation | 46 |
| 69 | Capital gains on purchase by company of its own shares or other specified securities | 46A |
| 70 | Transactions not regarded as transfer | 47 |
| 71 | Withdrawal of exemption in certain cases | 47A |
| 72 | Mode of computation of capital gains | 48 |
| 73 | Cost with reference to certain modes of acquisition | 49 |
| 74 | Special provision for computation of capital gains in case of depreciable asset | 50 |
| 75 | Special provision for cost of acquisition in case of depreciable asset | 50A |
| 76 | Special provision for computation of capital gains in case of Market Linked Debenture | 50AA |
| 77 | Special provision for computation of capital gains in case of slump sale | 50B |
| 78 | Special provision for full value of consideration in certain cases | 50C |
| 79 | Special provision for full value of consideration for transfer of share other than quoted share | 50CA |
| 80 | Fair market value deemed to be full value of consideration in certain cases | 50D |
| 81 | Advance money received | 51 |
| 82 | Profit on sale of property used for residence | 54 |
| 83 | Capital gains on transfer of land used for agricultural purposes not to be charged in certain cases | 54B |
| 84 | Capital gains on compulsory acquisition of lands and buildings not to be charged in certain cases | 54D |
| 85 | Capital gains not to be charged on investment in certain bonds | 54EC |
| 86 | Capital gains on transfer of certain capital assets not to be charged in case of investment in residential house | 54F |
| 87 | Exemption of capital gains on transfer of assets in cases of shifting of industrial undertaking from urban area | 54G |
| 88 | Exemption of capital gains on transfer of assets in cases of shifting of industrial undertaking from urban area to any Special Economic Zone | 54GA |
| 89 | Extension of time for acquiring new asset or depositing or investing amount of capital gains. Meaning of “adjusted”, “cost of improvement” and “cost of acquisition” | 55 |
| 90 | Reference to Valuation Officer | 55A |
| [91–95] | F. Income from other sources | — |
| 92 | Income from other sources | 56 |
| 93 | Deductions | 57 |
| 94 | Amounts not deductible | 58 |
| 95 | Profits chargeable to tax | 59 |
CHAPTER V- INCOME OF OTHER PERSONS INCLUDED IN TOTAL INCOME OF ASSESSEE
| Section Numbers of the Income-tax Act, 2025 | Section Heading | Parallel Section(s) of Income-tax Act, 1961 |
|---|---|---|
| 96 | Transfer of income without transfer of assets | 60 |
| 97 | Chargeability of income in transfer of assets | 61 and 62 |
| 98 | “Transfer” and “revocable transfer” defined. | 63 |
| 99 | Income of individual to include income of spouse, minor child, etc. | 64 |
| 100 | Liability of person in respect of income included in income of another person. | 65 |
