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The Income Tax Act 1961 was repealed under Section 536 of the new Act from April 1, 2026.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

Section 115C → Section 126

Special provisions relating to certain incomes of non-residents

RetainedHigh - Very important for NRI tax planning and FEMA compliance.

Quick Answer

Section 115C of the Income Tax Act, 1961 (Special provisions relating to certain incomes of non-residents) corresponds to Section 126 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.

What changed for Section 115C

Under the Income Tax Act, 1961, Section 115C governs special provisions relating to certain incomes of non-residents. Provides concessional tax rates (like 20% on investment income and 10% on LTCG) for Non-Resident Indians (NRIs) investing in specific Indian assets.

Under the Income-tax Act, 2025 (effective 1st April 2026), Section 115C is retained and renumbered as Section 126 of the Income-tax Act, 2025. Retained. Ensures that foreign exchange remittances from the Indian diaspora continue to receive preferential tax treatment.

The transition impact on Section 115C is assessed as High. Very important for NRI tax planning and FEMA compliance.

Old Law (ITA 1961)Ch: XII-A

Sec 115C

Provision Summary

Provides concessional tax rates (like 20% on investment income and 10% on LTCG) for Non-Resident Indians (NRIs) investing in specific Indian assets.

New Law (ITA 2025)Ch: XI

Sec 126

Provision Summary

Retained. Ensures that foreign exchange remittances from the Indian diaspora continue to receive preferential tax treatment.

Key Changes & Highlights

Definition of 'specified asset' updated to include certain notified sovereign green bonds.

Related Sections

Section 115DSection 115E

Frequently Asked Questions

Which subject does Section 115C of the 1961 Act cover?

Section 115C of the Income Tax Act, 1961 covers special provisions relating to certain incomes of non-residents. Provides concessional tax rates (like 20% on investment income and 10% on LTCG) for Non-Resident Indians (NRIs) investing in specific Indian assets.

What is the new section number for Section 115C under the Income-tax Act, 2025?

Section 115C of the Income Tax Act, 1961 maps to Section 126 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Ensures that foreign exchange remittances from the Indian diaspora continue to receive preferential tax treatment.

How does the Income-tax Act, 2025 affect Section 115C in practice?

The transition impact for Section 115C is rated High. Very important for NRI tax planning and FEMA compliance.

What is new about Section 115C under the Income-tax Act, 2025?

Definition of 'specified asset' updated to include certain notified sovereign green bonds. These points are specific to Section 115C (Special provisions relating to certain incomes of non-residents).

Disclaimer: This mapping of Section 115C (Special provisions relating to certain incomes of non-residents) to Section 126 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 115C is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.

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