What is the Income-tax Act, 2025 and when did it come into effect?

The 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The Income Tax Act 1961 was repealed under Section 536 of the new Act from April 1, 2026.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 Income-tax Act, 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 Income-tax Act, 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 Income-tax Act, 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 the Income-tax Act, 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 Income-tax Act 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 Income-tax Act, 2025 equivalents.

Back to Search

ITA 1961 → ITA 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 Income-tax Act, 2025, effective 1st April 2026.

What changed for Section Set-off Rules (New Regime)

Under the Income Tax Act, 1961, Section Set-off Rules (New Regime) governs 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.

Under the Income-tax Act, 2025 (effective 1st April 2026), this provision has been deleted — there is no successor section carrying it forward. 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.

The transition impact on Section Set-off Rules (New Regime) is assessed as High. Eliminates a major tax-planning strategy for high-income earners.

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 ITA 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

Which subject does Section Set-off Rules (New Regime) of the 1961 Act cover?

Section Set-off Rules (New Regime) of the Income Tax Act, 1961 covers 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 the Income-tax Act, 2025?

Section Set-off Rules (New Regime) has been deleted under the Income-tax Act, 2025, with no successor section carrying it forward from 1st April 2026. 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.

How does the Income-tax Act, 2025 affect Section Set-off Rules (New Regime) in practice?

The transition impact for Section Set-off Rules (New Regime) is rated High. Eliminates a major tax-planning strategy for high-income earners.

What is new about Section Set-off Rules (New Regime) under the Income-tax Act, 2025?

Major blow to taxpayers buying second homes on loan to reduce their salary tax. These points are specific to Section Set-off Rules (New Regime) (Set-off of House Property Loss Against Salary Abolished).

Disclaimer: This mapping of Section Set-off Rules (New Regime) (Set-off of House Property Loss Against Salary Abolished) under the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section Set-off Rules (New Regime) is currently marked Deleted, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.

Need professional help on Section Set-off Rules (New Regime)?

Compare trusted providers — both offer CA services ready for the Income-tax Act, 2025.

*Affiliate links — we may earn a small commission at no extra cost to you. Disclosure.

Want to calculate tax on this section?

40+ free, browser-only tax tools at TaxNexus Pro →

Explore Tools