Section 115-I → Section 131
Chapter XII-A not to apply if the assessee so chooses
Quick Answer
Section 115-I of the Income Tax Act, 1961 (Chapter XII-A not to apply if the assessee so chooses) corresponds to Section 131 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 115-I
Under the Income Tax Act, 1961, Section 115-I governs chapter XII-A not to apply if the assessee so chooses. Allows an NRI to opt out of these special concessional rates if normal slab rates (or other deductions) are more beneficial to them.
From 1st April 2026, the same subject sits at Section 131 of the Income-tax Act, 2025 — retained and renumbered as Section 131 of the Income-tax Act, 2025. Retained. Allows taxpayers to use tax optimization algorithms to choose the best regime.
For Section 115-I, the practical impact is rated Medium. Flexibility in tax planning.
Sec 115-I
Provision Summary
Allows an NRI to opt out of these special concessional rates if normal slab rates (or other deductions) are more beneficial to them.
Sec 131
Provision Summary
Retained. Allows taxpayers to use tax optimization algorithms to choose the best regime.
Key Changes & Highlights
- Opting out can be done dynamically at the time of filing the ITR.
Frequently Asked Questions
What is Section 115-I of the Income Tax Act, 1961 about?
Section 115-I of the Income Tax Act, 1961 covers chapter XII-A not to apply if the assessee so chooses. Allows an NRI to opt out of these special concessional rates if normal slab rates (or other deductions) are more beneficial to them.
Which section replaces Section 115-I in the Income-tax Act, 2025?
Section 115-I of the Income Tax Act, 1961 maps to Section 131 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Allows taxpayers to use tax optimization algorithms to choose the best regime.
What is the impact of the change to Section 115-I under the new tax code?
The transition impact for Section 115-I is rated Medium. Flexibility in tax planning.
What should I watch out for when Section 115-I moves to the 2025 code?
Opting out can be done dynamically at the time of filing the ITR. These points are specific to Section 115-I (Chapter XII-A not to apply if the assessee so chooses).
Disclaimer: This mapping of Section 115-I (Chapter XII-A not to apply if the assessee so chooses) to Section 131 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 115-I is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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