What is the Direct Tax Code 2025 and when did it come into effect?

The Direct Tax Code 2025 (Income Tax Act 2025) replaced the Income Tax Act 1961 from April 1, 2026. It simplifies the entire direct tax framework, renumbers sections, removes redundancies, and modernizes taxation for India.

Is the Income Tax Act 1961 still valid after April 2026?

The Income Tax Act 1961 was repealed under Section 536 of the new Act from April 1, 2026. However, all assessments, appeals, and proceedings for periods before April 1, 2026 continue under the old ITA 1961 rules.

What is the new section number for Section 80C in Income Tax Act 2025?

Section 80C of the ITA 1961 maps to Section 123 of the Direct Tax Code 2025. Deductions for LIC premiums, PPF, ELSS, EPF, and home loan principal repayment continue under the new act.

What is the new section for TDS on professional fees (194J)?

Section 194J (TDS on professional and technical services) of the old Income Tax Act 1961 has been renumbered in the Direct Tax Code 2025. Use our free converter at ita1961to2025.in to find the exact new section number instantly.

How do I convert old income tax section numbers to new 2025 numbers?

Visit ita1961to2025.in and use the free section search tool. Type any old ITA 1961 section number (e.g., 80C, 194J, 139) and instantly see the new DTC 2025 equivalent, its status, and key changes.

Is the ITA 1961 to 2025 mapping tool free for CAs and tax professionals?

Yes, completely free. The section mapper, comparison cheat sheet, PDF download, and Tax Academy blog are all free for Chartered Accountants, tax lawyers, law students, and taxpayers.

Which sections were completely deleted in the new Income Tax Act 2025?

Several redundant and overlapping sections from ITA 1961 were not carried into DTC 2025. Use our free converter — each section is marked as Retained, Modified, or Deleted so you can quickly check any section's status.

Can I download the ITA 1961 to DTC 2025 comparison as a PDF?

Yes! Visit the Comparison page at ita1961to2025.in/comparison to download a free cheat sheet PDF showing side-by-side mapping of key ITA 1961 sections to their DTC 2025 equivalents.

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ITA 1961 → DTC 2025Set-off & Carry Forward

Section Set-off Rules (New Regime)

Set-off of House Property Loss Against Salary Abolished

DeletedHigh - Eliminates a major tax-planning strategy for high-income earners.

Quick Answer

Section Set-off Rules (New Regime) (Set-off of House Property Loss Against Salary Abolished) has been deleted under the Direct Tax Code 2025, effective 1st April 2026.

Old Law (ITA 1961)Ch: VI

Sec Set-off Rules (New Regime)

Provision Summary

Loss from let-out house property (due to home loan interest) could be set off against Salary or Business income up to Rs. 2 Lakhs.

Removed under DTC 2025

Deleted

Provision Summary

Not Applicable. In the new regime, any loss from house property can ONLY be set off against income from other house properties. It cannot be adjusted against salary.

Key Changes & Highlights

Major blow to taxpayers buying second homes on loan to reduce their salary tax.

Related Sections

Section 115BAC

Frequently Asked Questions

What does Section Set-off Rules (New Regime) of the Income Tax Act 1961 deal with?

Section Set-off Rules (New Regime) (Set-off of House Property Loss Against Salary Abolished) Loss from let-out house property (due to home loan interest) could be set off against Salary or Business income up to Rs. 2 Lakhs.

Is Section Set-off Rules (New Regime) of the ITA 1961 still applicable under DTC 2025?

Section Set-off Rules (New Regime) has been deleted under the Direct Tax Code 2025. Not Applicable. In the new regime, any loss from house property can ONLY be set off against income from other house properties. It cannot be adjusted against salary.

What is the status of Section Set-off Rules (New Regime) under the new tax code?

Section Set-off Rules (New Regime) is marked as "Deleted" with status "Deleted". Impact: High - Eliminates a major tax-planning strategy for high-income earners.

What are the key changes to Section Set-off Rules (New Regime) under DTC 2025?

Major blow to taxpayers buying second homes on loan to reduce their salary tax.

Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.

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