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The Income Tax Act 1961 was repealed under Section 536 of the new Act from April 1, 2026.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

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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 2025Corporate Taxation

Section 115O

Tax on distributed profits of domestic companies (DDT)

DeletedHigh - Fundamental change in corporate profit distribution.

Quick Answer

Section 115O (Tax on distributed profits of domestic companies (DDT)) has been deleted under the Income-tax Act, 2025, effective 1st April 2026.

What changed for Section 115O

Under the Income Tax Act, 1961, Section 115O governs tax on distributed profits of domestic companies (DDT). Domestic companies had to pay Dividend Distribution Tax (DDT) @ 15% (plus surcharge/cess) on the dividends declared.

Under the Income-tax Act, 2025 (effective 1st April 2026), this provision has been deleted — there is no successor section carrying it forward. NA. Section abolished. Dividend taxation shifted from the company to the shareholder.

The transition impact on Section 115O is assessed as High. Fundamental change in corporate profit distribution.

Old Law (ITA 1961)Ch: XII-D

Sec 115O

Provision Summary

Domestic companies had to pay Dividend Distribution Tax (DDT) @ 15% (plus surcharge/cess) on the dividends declared.

Removed under ITA 2025

Deleted

Provision Summary

NA. Section abolished. Dividend taxation shifted from the company to the shareholder.

Key Changes & Highlights

Companies no longer pay DDT. They deduct TDS under Section 194.

Related Sections

Section 10(34)

Frequently Asked Questions

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

Section 115O of the Income Tax Act, 1961 covers tax on distributed profits of domestic companies (DDT). Domestic companies had to pay Dividend Distribution Tax (DDT) @ 15% (plus surcharge/cess) on the dividends declared.

Is Section 115O of the ITA 1961 still applicable under the Income-tax Act, 2025?

Section 115O has been deleted under the Income-tax Act, 2025, with no successor section carrying it forward from 1st April 2026. NA. Section abolished. Dividend taxation shifted from the company to the shareholder.

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

The transition impact for Section 115O is rated High. Fundamental change in corporate profit distribution.

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

Companies no longer pay DDT. They deduct TDS under Section 194. These points are specific to Section 115O (Tax on distributed profits of domestic companies (DDT)).

Disclaimer: This mapping of Section 115O (Tax on distributed profits of domestic companies (DDT)) under the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 115O is currently marked Deleted, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.

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