Overview
From 1 April 2026 the Income-tax Act, 2025 replaces the Income-tax Act, 1961. If you've searched for "Section 87A" or "80C" and found a different number, this is why. The good news: your tax bill does not change. The new Act reorganises and renumbers the law; the actual rates come from the Finance Act, and Budget 2026 kept every personal-tax number the same as FY 2025-26.
Which Act applies to which return: the return you file for income earned in FY 2025-26 (due in 2026) still uses the 1961 Act and its old section numbers. The new numbers start with income earned from 1 April 2026 - tax year 2026-27.
What Changed - and What Didn't
- Unchanged: slabs (₹4L nil, then 5/10/15/20/25/30%), the ₹75,000 standard deduction, the ₹12 lakh rebate with marginal relief, surcharge, 4% cess, and the 20% / 12.5% equity capital-gains rates with the ₹1.25 lakh exemption. FY 2026-27 slabs →
- Renumbered: almost every section. The table below maps the ones a salaried taxpayer actually meets.
- Renamed: "previous year" and "assessment year" are gone. There is one term, tax year - the 1 April to 31 March period in which you earned the income. FY 2026-27 = tax year 2026-27 (you'd have called it AY 2027-28).
Same slabs, same deductions, same rebate amount - only the labels on your Form 16 and ITR change.
Old Section → New Section Map
| What it is | 1961 Act | 2025 Act |
|---|---|---|
| Rebate for lower incomes (₹12L new regime / ₹5L old regime) | 87A | 156 |
| New (default) tax regime | 115BAC | 202 |
| PF, PPF, ELSS, life insurance, tuition, home-loan principal (₹1.5L) | 80C / 80CCC | 123 |
| NPS contributions - own and employer's | 80CCD (1), (1B), (2) | 124 |
| Health insurance premium | 80D | 126 |
| Education-loan interest | 80E | 129 |
| Donations | 80G | 133 |
| Savings / deposit interest (₹10k under-60, ₹50k seniors) | 80TTA / 80TTB | 153 (merged) |
| House property: 30% standard deduction and home-loan interest | 24(a) / 24(b) | 22 |
| HRA exemption | 10(13A) | Moved to the Schedules |
| Presumptive business / professional income | 44AD / 44ADA / 44AE | 58 (merged) |
| STCG on listed equity (20%) | 111A | 196 |
| LTCG on listed equity (12.5% over ₹1.25L) | 112A | 198 |
| Reinvestment exemptions on property sale | 54 - 54F | 85 - 88 |
| Interest for advance-tax shortfall / deferment | 234B / 234C | 424 / 425 |
| Filing the return (belated, revised) | 139 | 263 |
| TDS on salary | 192 | 392 |
Compiled from the Income-tax Act 2025 as commonly reported by tax practitioners. Section numbers are for orientation - when a form or notice cites a section, go by the form. If you spot an error, tell us.
What This Means for You in Practice
- Payslips, Form 16 and the ITR utility for tax year 2026-27 will show the new numbers - "rebate u/s 156", "deduction u/s 123". Same amounts as before.
- Choosing a regime is unchanged: the new regime (now Section 202) is still the default; you can still opt for the old regime and its deductions if they beat it. Old vs new - which wins?
- The ₹12.75 lakh zero-tax figure for salaried people still holds - it just comes from Section 156 now. How the zero-tax band works.
- Advance-tax interest is now Sections 424 / 425 (was 234B / 234C) - same 1% per month, same instalment dates.
Key Takeaways
- Income-tax Act 2025 applies from 1 April 2026
- Rates, slabs and rebate amounts are unchanged
- 87A → 156, 80C → 123, 115BAC → 202
- "Tax year" replaces previous year / assessment year
- 111A → 196 and 112A → 198 for equity gains
- FY 2025-26 returns still use the old numbers
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