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The Income Tax Act 1961 was repealed under Section 536 of the new Act from April 1, 2026.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

Section 10(10AA) → Section 12

Leave Encashment at the time of retirement

RetainedHigh - Major retiral benefit for private sector employees.

Quick Answer

Section 10(10AA) of the Income Tax Act, 1961 (Leave Encashment at the time of retirement) corresponds to Section 12 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.

What changed for Section 10(10AA)

The starting point is Section 10(10AA) of the Income Tax Act, 1961 — leave encashment at the time of retirement. Exemption for cash equivalent of leave salary payable at the time of retirement. Limit for non-govt employees was Rs. 3 Lakhs.

Under the Income-tax Act, 2025 (effective 1st April 2026), Section 10(10AA) is retained and renumbered as Section 12 of the Income-tax Act, 2025. Retained. The statutory limit for non-government employees has been significantly enhanced to align with current wage structures (e.g., Rs. 25 Lakhs).

The transition impact on Section 10(10AA) is assessed as High. Major retiral benefit for private sector employees.

Old Law (ITA 1961)Ch: III

Sec 10(10AA)

Provision Summary

Exemption for cash equivalent of leave salary payable at the time of retirement. Limit for non-govt employees was Rs. 3 Lakhs.

New Law (ITA 2025)Ch: III

Sec 12

Provision Summary

Retained. The statutory limit for non-government employees has been significantly enhanced to align with current wage structures (e.g., Rs. 25 Lakhs).

Key Changes & Highlights

Exemption limit dynamically linked to government notifications.

Related Sections

Section 17

Frequently Asked Questions

Which subject does Section 10(10AA) of the 1961 Act cover?

Section 10(10AA) of the Income Tax Act, 1961 covers leave encashment at the time of retirement. Exemption for cash equivalent of leave salary payable at the time of retirement. Limit for non-govt employees was Rs. 3 Lakhs.

What is the new section number for Section 10(10AA) under the Income-tax Act, 2025?

Section 10(10AA) of the Income Tax Act, 1961 maps to Section 12 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. The statutory limit for non-government employees has been significantly enhanced to align with current wage structures (e.g., Rs. 25 Lakhs).

How does the Income-tax Act, 2025 affect Section 10(10AA) in practice?

The transition impact for Section 10(10AA) is rated High. Major retiral benefit for private sector employees.

What is new about Section 10(10AA) under the Income-tax Act, 2025?

Exemption limit dynamically linked to government notifications. These points are specific to Section 10(10AA) (Leave Encashment at the time of retirement).

Disclaimer: This mapping of Section 10(10AA) (Leave Encashment at the time of retirement) to Section 12 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 10(10AA) is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.

Need professional help on Section 10(10AA)?

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

Curated — ConsultACANeed help with compliance under the new Act?Consult a CA →Alternative — VakilsearchOr browse Vakilsearch services?Vakilsearch — All Services →

*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