Income Tax Act 2025 vs 1961: New Section and Form Number Mapping

From 1 April 2026 the Income-tax Act, 2025 replaces the Income-tax Act, 1961, and with it come new section numbers, new form numbers and one new term — the tax year. Your tax rates, slabs and deduction limits do not change, so what you must pay stays the same; only the numbering you use to refer to provisions moves. This guide maps the numbers taxpayers actually use, and explains which law applies to which filing season.

Which law applies to which year

The cleanest way to avoid confusion is to work year by year. Income earned in FY 2025-26 (AY 2026-27) is governed entirely by the 1961 Act, so returns filed in 2026 use old section numbers, ITR-1 to ITR-7 and forms like Form 16 and Form 26AS exactly as before. From FY 2026-27 (called tax year 2026-27), the 2025 Act and the new Income-tax Rules apply, and renumbered provisions and forms come into use.

• FY 2025-26 / AY 2026-27: 1961 Act, old sections, existing ITR-1 to ITR-7 forms.
• Tax year 2026-27 onwards: 2025 Act, new section numbers, renumbered forms under the Income-tax Rules, 2026.
• Pending assessments, notices and appeals for years before 1 April 2026 continue under the 1961 Act under the transition provisions (Section 536 of the 2025 Act).

The 2025 Act also merges the two old concepts of previous year and assessment year into a single tax year. Income is taxed in the same year it is earned under the new framework, which removes the yearly AY/FY juggling that confused many first-time filers.

Section numbers that changed

The table below covers the provisions individuals and small businesses reference most often. Chapter VI-A deductions (the old 80C to 80U family) now live in Sections 122 to 154, returns and processing moved into the 260s, and TDS collapsed from more than 60 sections into a handful of numbered tables.

TDS: three sections replace sixty

The most visible structural change is in TDS. Salary TDS (old Section 192) becomes Section 392. Every non-salary TDS section from 193 to 194T — interest, rent, contractors, professional fees, property sales and the rest — is consolidated into Section 393, which lays out payments in numbered tables with the same rates and thresholds. Tax collected at source (old Section 206C) moves to Section 394. The no-PAN higher deduction rule (old Section 206AA) is now in Section 397(2), and TDS statements and certificates sit under Section 395 and 397.

Form numbers that changed

Under the Income-tax Rules, 2026, everyday forms carry new numbers from tax year 2026-27. For AY 2026-27 filings you will still receive and use the old forms; the new numbers apply to compliances relating to the new law.

What did not change

Rebranding is not a rate hike. Slab rates, the rebate that keeps income up to ₹12 lakh tax-free in the default regime, deduction limits such as ₹1.5 lakh under old 80C, TDS rates and thresholds, and the five heads of income all carry over exactly as they stood for FY 2025-26. ITR-1 to ITR-7 remain the return names for AY 2026-27, and the e-filing portal processes old-year filings under the old law. If a portal page asks which Act applies, match it to the year of your income, not today’s date.

Key Takeaways

• AY 2026-27 filings (income of FY 2025-26) use the 1961 Act: old sections, Form 16, Form 26AS and ITR-1 to ITR-7.
• From tax year 2026-27: 80C becomes 123, 87A becomes 156, TDS runs through Sections 392/393/394.
• Form 16 becomes Form 130 and Form 26AS becomes Form 168; 15G/15H merge into Form 121.
• Previous year and assessment year merge into a single tax year from 1 April 2026.
• Rates, slabs and limits are unchanged — only numbering and terminology move.

Frequently Asked Questions

Do I quote Section 123 or Section 80C for my FY 2025-26 investments?

For income earned in FY 2025-26 (AY 2026-27), quote Section 80C of the 1961 Act — that is the law in force for that year. Section 123 is the corresponding provision for tax year 2026-27 onward. Using the old number for an old-year filing is correct, not outdated.

Will my June 2026 Form 16 be reissued as Form 130?

No. The certificate for FY 2025-26 salary is issued as Form 16 under the 1961 Act, as before. Employers start using Form 130 for tax year 2026-27 salary, so the first Form 130 you would normally receive relates to the year ending 31 March 2027.

Is Form 26AS discontinued?

The statement itself survives as Form 168, the annual information statement under the new Rules. For AY 2026-27 you will still reconcile credits in Form 26AS and AIS exactly as you did last year, so nothing changes for your 2026 filing.

Do pending old notices follow the new section numbers?

No. Under the transition rule (Section 536 of the 2025 Act), assessments, notices, penalties and appeals relating to years before 1 April 2026 continue under the 1961 Act. A scrutiny notice quoting Section 143(2) for an old year remains valid as issued.

Where can I see the complete official mapping?

The Income-tax Department publishes a comparison utility matching 1961 Act provisions to the 2025 Act on incometaxindia.gov.in, and the renumbered forms are listed in the Income-tax Rules, 2026. Start with our overviews of the Income-tax Act 2025 key changes and the tax compliance calendar to place each change on a timeline.

Disclaimer: Tax laws change frequently. Verify current rates and deadlines on the official portals (incometax.gov.in, gst.gov.in) or consult a qualified professional before acting.