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The Income Tax Act 1961 was repealed under Section 536 of the new Act from April 1, 2026.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

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ITA 1961 → ITA 2025Exemptions

Section 10(10D) → Section 12

Exemption - Life Insurance Proceeds

RetainedHigh - Major impact on the life insurance industry.

Quick Answer

Section 10(10D) of the Income Tax Act, 1961 (Exemption - Life Insurance Proceeds) corresponds to Section 12 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.

What changed for Section 10(10D)

Under the Income Tax Act, 1961, Section 10(10D) governs exemption - life insurance proceeds. Any sum received under a life insurance policy (including bonus) is exempt, subject to premium limits.

The new code maps this to Section 12: the provision is retained and renumbered as Section 12 of the Income-tax Act, 2025, applying from 1st April 2026. Retained but restricted. High-premium policies (aggregate premium > Rs. 5 Lakhs) remain taxable to prevent HNIs from misusing insurance as a tax-free investment.

On the ground, changes to Section 10(10D) carry a High impact. Major impact on the life insurance industry.

Old Law (ITA 1961)Ch: III

Sec 10(10D)

Provision Summary

Any sum received under a life insurance policy (including bonus) is exempt, subject to premium limits.

New Law (ITA 2025)Ch: III

Sec 12

Provision Summary

Retained but restricted. High-premium policies (aggregate premium > Rs. 5 Lakhs) remain taxable to prevent HNIs from misusing insurance as a tax-free investment.

Key Changes & Highlights

Taxability calculated via Capital Gains for policies exceeding the premium threshold.

Related Sections

Section 56(2)

Frequently Asked Questions

What does Section 10(10D) of the Income Tax Act 1961 deal with?

Section 10(10D) of the Income Tax Act, 1961 covers exemption - life insurance proceeds. Any sum received under a life insurance policy (including bonus) is exempt, subject to premium limits.

Where does Section 10(10D) of the ITA 1961 go under the Income-tax Act, 2025?

Section 10(10D) of the Income Tax Act, 1961 maps to Section 12 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained but restricted. High-premium policies (aggregate premium > Rs. 5 Lakhs) remain taxable to prevent HNIs from misusing insurance as a tax-free investment.

Why does the change to Section 10(10D) matter for taxpayers?

The transition impact for Section 10(10D) is rated High. Major impact on the life insurance industry.

What are the key changes to Section 10(10D) under the Income-tax Act, 2025?

Taxability calculated via Capital Gains for policies exceeding the premium threshold. These points are specific to Section 10(10D) (Exemption - Life Insurance Proceeds).

Disclaimer: This mapping of Section 10(10D) (Exemption - Life Insurance Proceeds) 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(10D) is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.

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