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The Income Tax Act 1961 was repealed under Section 536 of the new Act from April 1, 2026.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

Section 115TD → Section 135

Tax on accreted income (Exit Tax for Trusts)

RetainedCritical - Prevents founders from privately siphoning off tax-free NGO assets.

Quick Answer

Section 115TD of the Income Tax Act, 1961 (Tax on accreted income (Exit Tax for Trusts)) corresponds to Section 135 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.

What changed for Section 115TD

In the 1961 statute, Section 115TD deals with tax on accreted income (exit tax for trusts). Levies an 'Exit Tax' at the Maximum Marginal Rate (MMR) on the accreted wealth (assets minus liabilities) of a charitable trust if it converts into a non-charitable entity or cancels its registration.

From 1st April 2026, the same subject sits at Section 135 of the Income-tax Act, 2025 — retained and renumbered as Section 135 of the Income-tax Act, 2025. Retained and made more stringent. Trusts failing to renew their 12AB registration within the specified deadline are automatically hit with this exit tax.

For Section 115TD, the practical impact is rated Critical. Prevents founders from privately siphoning off tax-free NGO assets.

Old Law (ITA 1961)Ch: XII-EB

Sec 115TD

Provision Summary

Levies an 'Exit Tax' at the Maximum Marginal Rate (MMR) on the accreted wealth (assets minus liabilities) of a charitable trust if it converts into a non-charitable entity or cancels its registration.

New Law (ITA 2025)Ch: XI

Sec 135

Provision Summary

Retained and made more stringent. Trusts failing to renew their 12AB registration within the specified deadline are automatically hit with this exit tax.

Key Changes & Highlights

Valuation of assets for exit tax purposes must be done strictly by a Category-1 registered merchant banker for unlisted shares.

Related Sections

Section 12AB

Frequently Asked Questions

What is Section 115TD of the Income Tax Act, 1961 about?

Section 115TD of the Income Tax Act, 1961 covers tax on accreted income (exit tax for trusts). Levies an 'Exit Tax' at the Maximum Marginal Rate (MMR) on the accreted wealth (assets minus liabilities) of a charitable trust if it converts into a non-charitable entity or cancels its registration.

Which section replaces Section 115TD in the Income-tax Act, 2025?

Section 115TD of the Income Tax Act, 1961 maps to Section 135 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained and made more stringent. Trusts failing to renew their 12AB registration within the specified deadline are automatically hit with this exit tax.

What is the impact of the change to Section 115TD under the new tax code?

The transition impact for Section 115TD is rated Critical. Prevents founders from privately siphoning off tax-free NGO assets.

What should I watch out for when Section 115TD moves to the 2025 code?

Valuation of assets for exit tax purposes must be done strictly by a Category-1 registered merchant banker for unlisted shares. These points are specific to Section 115TD (Tax on accreted income (Exit Tax for Trusts)).

Disclaimer: This mapping of Section 115TD (Tax on accreted income (Exit Tax for Trusts)) to Section 135 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 115TD is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.

Need professional help on Section 115TD?

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

*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