Will ITR Forms Change For Tax Year 2026-27?

Yes, ITR forms for the Tax Year 2026-27 will reference 2025 Act section numbers. Considering this, the tax deductions and filing requirements are the same, but section citations on forms and schedules will showcase the new numbering.

NRI Income Tax Compliance

Income Tax Act 2025: Complete Section-Wise Mapping from the 1961 Act

Written by Hatim Dudhiyawala

Updated on: June 8, 202617 mins Editorial Standards

Income Tax Act 2025 vs Income Tax Act 1961: Complete Section Mapping

Do you know that as of April 1, 2026, the Income Tax 2025 section numbers replaced the Income Tax Act 1961 section numbers? While the basic taxation rules largely remain the same. Additionally, most of the section numbers have been changed and considered under the new act. However, because of these modifications, it can be difficult for taxpayers to determine which new section relates to the older provision.

Considering this, to help you out, this blog provides you with complete section mapping. Apart from this, it will help you understand the new section numbers stated under the Income Tax Act, 2025, key structural changes, impact, benefits, and the challenges of the new act for taxpayers. So read on and gather all the information.

Key Takeaways

The Income Tax Act, 2025, has restructured the direct tax framework of India. It came into effect from April 1, 2026, replacing the Income Tax Act, 1961.
The primary goal of the Income Tax Act 2025 is to provide statutory simplification, removing outdated language and reducing the legislation volume.
No changes in the deduction and exemption benefits, but their section number have been revised.
All TDS and TCS sections that previously stated under sections 192 to 194T are now mentioned under section 393.
The new income tax act does not introduce any new taxes or withdraw any tax exemption.

Why Was the Income Tax Act Replaced in 2025?

Before moving to the section mapping, let's first know why the Income Tax Act 2025 replaced the Income Tax Act 1961. The Income Tax Act, 1961, consists of more than 298 sections, hundreds of sub-sections, and thousands of provisions, along with many amendments. It was first started with a reasonably structured statute, but now creating difficulty to work with, even for tax experts. Additionally, in this, the Direct Tax Code review committee and subsequent government consultations identified three key issues:

The language used across sections was inconsistent and outdated.
In many cases, provisions and explanations become longer than the main sections they were meant to clarify.
The chapter structure was unable to showcase how tax compliance works practically.

The Income Tax Act 2025 resolved all these issues. It modernizes the language, integrating and reducing the provisions, and reorganising the chapter structure to make a clear flow. It starts with general concepts, followed by the calculation of income, deductions, filing, tax assessment, and appeals.

So, here is why the Income Tax Act 2025 replaced the Income Tax Act 1991. Now, to get a better idea of this, let's compare both acts.

Difference Between Income Tax Act 2025 and Income Tax Act 1961

The table below showcases the difference between the Income Tax Act 2025 and the Income Tax Act 1961:

Feature	Income Tax Act 1961	Income Tax Act 2025
Enactment Year	1961	2025
Effective From	AY 1962-63	Tax Year 2026-27
Total Sections/ Clauses	~298 Sections	~536 Clauses across 23 Chapters
Language Style	Dense, outdated, and heavily amended.	Simple, modern, and consolidated.
Provision and Explanations	Extensive- often longer than main sections.	Integrated and reduced into the main section.
Chapter Structure	23 Chapters with multiple later amendments.	Properly reorganised into logical compliance flow.
Section Numbering	Due to the amendments not being properly sequential.	Systematic and clean numbering.
Tax Rates and Policy	Base/ original law	Largely preserved with structural simplification.
NRI Applicability	Yes	Yes, it continues the same taxation principles.
DTAA and Foreign Income Relief	Sections 90 and 91	Sections 159 and 160 (renumbered provisions)
Residential Status Rules	Section 6	Section 6 (retained largely)
Capital Gains Provisions	Sections 45 to 55A	Sections 67 to 91
TDS Provisions	Sections 192 to 206CCA	Consolidated under Chapter XII
Return Filing Provisions	Section 139 series	Section 263 onwards
New Tax Regime Reference	Section 115BAC	Section 174 (renumbered)
Crypto/ VDA Taxation	Section 115BBH	Section 179
Ease of interpretation	Due to decades of amendments, it is complex.	Simple to navigate and read.
Compliance Structure	Across multiple chapters, scattered.	It is grouped by practical compliance categories.
Drafting Focus	Legalistic drafting style.	User-friendly legislative drafting.
Impact on Taxpayers	Familiar but hard to interpret.	It is intended to ease compliance without any major policy overhaul.

This was all about the difference between the Income Tax Act 1961 and the Income Tax Act 2025. Now, moving ahead, let's know the key structural changes in the new Income Tax Act 2025.

Key Structural Changes in the New Income Tax Act 2025

The key structural changes in the new Income Tax Act 2025 are as follows:

Simplified Section Numbering System

One of the most practical changes that was conducted in the new Income Tax Act 2025 is renumbering the sections. The Income Tax Act 1961 had an irregular numbering system for its 298 sections. Additionally, multiple amendments had added several sections like 80C, 80CCC, 80CCCD, 115BAC, and 115BBH, having a numbering pattern with no logical flow.

Further, this issue is resolved with the introduction of the Income Tax Act 2025 section numbers. The Tax Act 2025 provides you with a clear, sequential numbering system. It has grouped the related provisions under consistent number ranges, making it easy to identify the relevant section.

Reduction in Provisions and Explanations

Under the Income Tax Act 1961, it was common for one section to carry 5 to 6 provisions along with two to three explanations. For instance, to read section 10 (exempt income) or section 48 (capital gains computation), you need to go through several provisions. It is simplified in the 2025 Act by integrating most of the provisions into the main text or making separate sub-sections. This further helps non-tax experts to easily understand the Indian taxation system.

Reorganized Chapters and Compliance Structure

The chapters mentioned in the 2025 Act follow a natural order of tax compliance. For instance, who has tax liability, what income is covered under what section, how tax deductions work, how to file ITR, and how to pay and appeal in case of disputes. This structure showcases how accountants and taxpayers work through an ITR.

Shorter and More Readable Legal Language

In the Act 2025, legal drafting uses shorter sentences, active voices where possible, and is more concise. This reduces the requirement of reading multiple sections together, which was done in the 1961 Act, as it contains many rules within a clear, single provision where possible.

These are the key structural changes made in the new Income Tax Act. Moving further, let's know the number of sections included in the Income Tax Act.

What is the Total Number of Sections in the Income Tax Act?

The Income Tax Act 1961 consists of around 298 sections, which, over time, have grown significantly through multiple amendments. In contrast, the Income Tax Act 2025 contains around 536 clauses spread across 23 Chapters and 16 schedules. This increased number showcases better organization, as many provisions that were part of sub-sections or lengthy explanations are now represented as standalone, clear clauses. Rather than complexity, these higher numbers provide more transparency to taxpayers.

*Note: It is advisable in the Gazette notification of the Income Tax Act 2025 to check the official section and chapter number.

Complete Chapter-Wise Mapping: Income Tax Act 1961 and Income Tax Act 2025

CATEGORY 1 — RESIDENTIAL STATUS AND SCOPE OF INCOME

Section (2025)	Section (1961)	What It Covers	Applicable To
2	2	Definitions — including “person”, “assessee”, “income”, “tax year”	All
3	3	Definition of “tax year” (replaces previous FY/AY terminology)	All
5	5	Scope of total income — what income is taxable in India	All
6	6	Residential status rules — determines NRI vs resident classification	All — critical for NRIs
9	9, 9A	Income deemed to accrue or arise in India	NRIs — primary applicability

CATEGORY 2 — INCOME HEADS AND COMPUTATION

Section (2025)	Section (1961)	What It Covers	Applicable To
13	14	Five heads of income	All
15–19	15–17, 16	Salary income, perquisites, standard deduction	Residents, NRIs
20–22	22–24	House property income and deductions	Residents, NRIs
26	28	Business and profession income	Business, NRIs
33	32	Depreciation deduction	Business
34	37	General business expenditure deduction	Business
37	43B	Deductions allowed on actual payment basis	Business
58	44AD, 44ADA, 44AE	Presumptive taxation	Residents (small businesses)
59	44DA	Royalty and technical services income	NRIs, Foreign companies
60	44C	Head office expenditure deduction	NRIs, Foreign companies
61	44B–44BBD	Presumptive taxation for non-resident business activities	NRIs
62	44AA	Maintenance of books of account	Business
63	44AB	Tax audit provisions	Business
67	45	Capital gains charging section	All
72	48	Capital gains computation	All
73	49	Cost of acquisition rules	All
78	50C	Stamp duty value for property transactions	Residents, NRIs
82	54	Capital gains exemption on house property reinvestment	Residents, NRIs
85	54EC	Exemption through specified bonds	All
86	54F	Exemption on reinvestment in residential house	Residents, NRIs
92	56	Income from other sources	All

CATEGORY 3 — EXEMPT INCOME

Section (2025)	Section (1961)	What It Covers	Applicable To
11	10	Exempt income — agricultural income, PPF, gratuity, NRE interest, etc.	All
12	13A, 13B	Exempt income of political parties/electoral trusts	Political entities

CATEGORY 4 — DEDUCTIONS FROM TOTAL INCOME

Section (2025)	Section (1961)	What It Covers	Applicable To
123	80C, 80CCC, 80CCE	LIC, ELSS, home loan principal, etc.	Residents, limited NRI applicability
124	80CCD	NPS deductions	Residents, NRIs
126	80D	Health insurance premiums	Residents, NRIs
129	80E	Education loan interest	Residents, NRIs
133	80G	Donations to approved institutions	Residents, NRIs
137	80GGC	Political contributions	Residents, NRIs
153	80TTA, 80TTB	Savings and FD interest deduction	Residents
154	80U	Disability deduction	Residents

CATEGORY 5 — REBATES, RELIEFS, AND DTAA

Section (2025)	Section (1961)	What It Covers	Applicable To
155	87	Rebate in computing income tax	Residents
156	87A	Rebate under old/new regime	Residents only
157	89	Relief on salary arrears	Residents, NRIs
158	89A	Relief for overseas retirement accounts	NRIs
159	90, 90A	DTAA relief provisions	NRIs, Residents
160	91	Unilateral foreign tax relief	NRIs, Residents

CATEGORY 6 — SPECIAL TAX RATES

Section (2025)	Section (1961)	What It Covers	Applicable To
194	115A	Tax on NRI investment income and LTCG	NRIs
195	115AD	Tax on FII/FPI income	NRIs
199	115BBA	Tax on non-resident sportsmen/entertainers	NRIs
201	115BAA	22% concessional corporate tax	Business
202	115BAB	15% tax for manufacturing companies	Business
203	115BAC	New tax regime	Residents, NRIs
215	115BBH	Crypto/VDA taxation	All
216	115BBJ	Online gaming winnings tax	All
218	112A	LTCG on listed equity	All
219	111A	STCG on listed equity	All
220	112	LTCG on other assets	All

CATEGORY 7 — TDS AND TCS

Section (2025)	Section (1961)	What It Covers	Applicable To
385	192	TDS on salary	Residents, NRIs
387	193	TDS on securities interest	Residents, NRIs
388	194	TDS on dividends	Residents, NRIs
389	194A	TDS on bank interest and FDs	Residents, NRIs
392	194C	TDS on contractors	Business
397	194I	TDS on rent	Residents, NRIs
398	194J	TDS on professional fees	Business, NRIs
399	195	TDS on payments to non-residents	NRIs
403	197	Lower/Nil TDS certificate	All
404	197A	Form 15G/15H declarations	Residents
410	201	Failure to deduct TDS	Business
413	206C(1G)	TCS on foreign remittance under LRS	Residents, NRIs
416	206AB, 206CCA	Higher TDS/TCS for non-filers	All

CATEGORY 8 — RETURN FILING AND ASSESSMENT

Section (2025)	Section (1961)	What It Covers	Applicable To
262	139A, 139AA	PAN and Aadhaar linking	All
263	139	ITR filing provisions	All
266	140A	Self-assessment tax	All
267	140B	Updated return (ITR-U)	All
272	143(1)	Summary assessment	All
273	143(3)	Scrutiny assessment	All
275	144B	Faceless assessment	All
290	234A	Interest for late filing	All
291	234B	Interest for advance tax default	All
292	234C	Interest for deferment of advance tax	All
294	234F	Late filing fee	All

CATEGORY 9 — ADVANCE TAX

Section (2025)	Section (1961)	What It Covers	Applicable To
380	208	Liability to pay advance tax	All
382	209	Computation of advance tax	All
383	211	Advance tax instalments	All

CATEGORY 10 — INTERNATIONAL TAX AND TRANSFER PRICING

Section (2025)	Section (1961)	What It Covers	Applicable To
159	90, 90A	DTAA treaty relief	NRIs
160	91	Unilateral relief	NRIs
161	92	Transfer pricing provisions	Business, NRIs
165	92C	Arm’s length pricing	Business
167	92CB	Safe harbour rules	Business
168	92CC	Advance Pricing Agreements	Business
178	95	GAAR provisions	All

CATEGORY 11 — PENALTIES

Section (2025)	Section (1961)	What It Covers	Applicable To
441	270A	Penalty for under-reporting income	All
442	271F	Penalty for failure to file return	All
445	271B	Penalty for failure to conduct audit	Business
446	271BA	Failure to report international transactions	Business, NRIs
448	271C	Failure to deduct TDS	Business
450	Black Money Act	Penalty for non-disclosure of foreign assets	NRIs

CATEGORY 12 — APPEALS AND DISPUTE RESOLUTION

Section (2025)	Section (1961)	What It Covers	Applicable To
320	246A	Appeal before CIT(A)	All
325	253	Appeal before ITAT	All
328	260A	Appeal before High Court	All
329	261	Appeal before Supreme Court	All
330–331	263, 264	Revision powers of Commissioner	All
297–310	245Q–245V	Advance ruling provisions	NRIs

CATEGORY 13 — REFUNDS

Section (2025)	Section (1961)	What It Covers	Applicable To
430	237	Refund of excess tax	All
431	239	Claiming refund	All
435	244A	Interest on delayed refunds	All
436	245	Set-off of refund against tax demand	All
437	241A	Withholding of refund	All

CATEGORY 14 — IMPORTANT NRI SECTIONS AT A GLANCE

Section (2025)	Section (1961)	Why It Matters for NRIs
6	6	Determines NRI/RNOR/Resident status
9	9	Defines taxable Indian income
11	10	NRE account interest exemption
158	89A	Overseas retirement account relief
159	90, 90A	DTAA benefit provisions
160	91	Relief where DTAA absent
194	115A	Special NRI tax rates
203	115BAC	New tax regime applicability
215	115BBH	Crypto taxation for NRIs
263	139	NRI ITR filing obligation
289	230	Tax clearance certificate
297–310	245Q–245V	Advance ruling mechanism
399	195	TDS on NRI payments
403	197	Lower TDS certificate

CATEGORY 15 — SECTIONS REMOVED OR DISCONTINUED IN THE 2025 ACT

Provision	Section (1961)	What Changed	Impact
Settlement Commission	245A–245M	Abolished	Appeals route required
Dividend Distribution Tax	115-O	Removed	Dividend taxable in shareholder’s hands
Multiple standard deduction provisions	Various	Simplified and consolidated	Cleaner computation structure

This was all about the total number of sections in the Income Tax Act. Moving forward, let's know the impact of new section numbers on taxpayers and professionals.

Impact of New Section Numbers on Taxpayers and Professionals

The impact of new section numbers on taxpayers and professionals is as follows:

Changes in ITR Filing References: Starting from Tax Year 2026-27, for ITR filing, taxpayers will use new section numbers. For many individual taxpayers, it is a minor update as the tax deductions, exemptions, and filing requirements are the same. The key change is only how the tax deductions are now cited in the form.
Impact on Tax Compliance Software: All the tax filing platforms for 2026-27 ITR filings need to update their section references. Considering this, while filing your ITR, ensure that you are using an updated tax filing software.
Effect on Tax Litigation and Case Law Reference: This is a major transition challenge. It is because of decades of High Court, Supreme Court, and ITAT judgements using the section numbers mentioned in the Act 1961. Considering this, before tribunals and courts, legal practitioners will need to maintain a cross-reference for citing. Although during this transaction, courts are expected to accept both references, no formal notification has been issued yet.
Challenges for CA and Tax Professionals: CAs and tax professionals need to update their section knowledge as per the new Act 2025, revise the compliance checklist, and re-train their staff. Considering this, it is expected that ICAI will issue updated study material and guidance notes. Additionally, during the transition period, they need to pay careful attention to where both Act references may be used for at least two or three tax filing cycles.

So, this is the impact of new section numbers on taxpayers and professionals. Moving ahead, now let's look at the benefits of the new income tax act structure.

Benefits of the New Income Tax Act Structure

Here are the benefits of the new income tax act structure for taxpayers:

Without needing an expert to resolve any query, taxpayers can now easily understand routine provisions.
Fewer provisions mean fewer ambiguities, resulting in less interpretational disputes.
The logical and organized flow of the chapter makes it simple to locate relevant sections.
Clear numbering eases cross-referencing in assessments, notices, and appeals.
For non-English first readers, the use of modern languages has reduced the risk of misinterpretation.
Additionally, to understand a single term, the introduction of unified definitions has reduced the requirement to move through different sections.
Under sections 159 and 160, NRIs and foreign investors get benefits from a cleaner DTAA and foreign income provisions.

These are some of the key benefits of the new income tax act structure for taxpayers. Now, moving further, let's know the challenges faced by taxpayers and professionals during the transition from the 1961 Act to the 2025 Act.

Challenges During the Transition from the 1961 Act to the 2025 Act

The challenges taxpayers and professionals faced during the transition from the 1961 Act to the 2025 Act are as follows:

All existing tribunal orders, case law, and court judgements use the sections of the 1961 Act. Considering this, for at least two to three filing cycles, they need to maintain parallel mapping.
Before the Tax Year 2026-27 ITR filing season, tax software needs to update its sections on the portal.
Payroll processors and HR teams need updated TDS section references.
Educational and professional examination materials need to be revised fully across all tax bodies.
NRIs, depending on tax advisors for DTAA claims, should confirm with their experts that they are working according to the new act references.
Before new section references, a transition period of two to three years is likely to be used for universal adoption.

So, these are some key challenges that taxpayers and professionals face during the transition from the 1961 Act to the 2025 Act section numbers.

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Final Thoughts

Lastly, the Income Tax Act 2025 provides a new structure with renumbered and reorganised provisions, effective from April 1, 2026. Additionally, the Income Tax Act 2025 section numbers have changed, but the tax rates, exemptions, deductions, and compliance obligations that taxpayers use every day are safe under these sections. This master mapping section blog helps you simply identify the corresponding provisions between both acts.

Furthermore, if you are still confused and looking for a reliable NRI tax expert, connect with Savetaxs. We have a team of professionals who will help you in resolving all your tax-related queries and assist you in fulfilling your tax obligations.

Glossary

Capital: Capital, a Financial Term Used for Business Operations, Like Bank Accounts, Stocks, Assets, Etc.

DTAA Between India and UAE

Disclaimer

Note: This guide is for information purposes only. The views expressed in this guide are personal and do not constitute the views of Savetaxs. Savetaxs or the author will not be responsible for any direct or indirect loss incurred by the reader for taking any decision based on the information or the contents. It is advisable to consult either a CA, CS, CPA or a professional tax expert from the Savetaxs team, as they are familiar with the current regulations and help you make accurate decisions and maintain accuracy throughout the whole process.

About Author

Hatim Dudhiyawala Certified Public Accountant (CPA)

Hatim Dudhiyawala is a Certified Public Accountant (CPA) with SaveTaxs and specializes in Indian and NRI taxation. He advises individuals, NRIs, and businesses on income tax filing, capital gains taxation, DTAA benefits, fund repatriation, and tax compliance. With experience in cross-border tax matters, Hatim helps taxpayers understand complex regulations and make informed decisions. Through his articles, he shares practical insights to help readers stay compliant and manage their tax obligations with confidence. See Full Bio

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Frequently Asked Questions

No, the Income Tax Act is a structural reorganisation. Considering this, it does not change tax rates, slabs, deductions, and exemption threshold governed by the Annual Finance Act.

The Income Tax Act 2025 comes into effect on April 1, 2026. It covers income earned from April 1, 2026, onwards.

The Income Tax Act 2025 contains 536 sections across 23 chapters and 16 schedules. The higher count of sections showcases better-organised provisions with modern language.

The new section number for section 80C is section 123 (read with Schedule XV) in the Income Tax Act 2025. In this, the tax deduction limit and eligible instruments remain the same.

No, DTAA provisions do not change for NRIs. They carry forward as sections 159 and 160 in the Income Tax Act 2025. Additionally, the treaty claim process and unilateral relief remain the same.