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The Income Tax Act 1961 was repealed under Section 536 of the new Act from April 1, 2026.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 2025Pass-through Status

Section 115UB → Section 139

Tax on income of investment fund and its unit holders (AIFs)

RetainedHigh - Backbone of startup funding structures.

Quick Answer

Section 115UB of the Income Tax Act, 1961 (Tax on income of investment fund and its unit holders (AIFs)) corresponds to Section 139 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.

What changed for Section 115UB

Under the Income Tax Act, 1961, Section 115UB governs tax on income of investment fund and its unit holders (aifs). Grants 'pass-through' status to Category I and II Alternative Investment Funds (AIFs). Income (other than PGBP) is taxed directly in the hands of the investor.

From 1st April 2026, the same subject sits at Section 139 of the Income-tax Act, 2025 — retained and renumbered as Section 139 of the Income-tax Act, 2025. Retained verbatim. Crucial for the venture capital and private equity ecosystem in India.

For Section 115UB, the practical impact is rated High. Backbone of startup funding structures.

Old Law (ITA 1961)Ch: XII-FB

Sec 115UB

Provision Summary

Grants 'pass-through' status to Category I and II Alternative Investment Funds (AIFs). Income (other than PGBP) is taxed directly in the hands of the investor.

New Law (ITA 2025)Ch: XI

Sec 139

Provision Summary

Retained verbatim. Crucial for the venture capital and private equity ecosystem in India.

Key Changes & Highlights

Loss carry-forward rules for AIFs made more investor-friendly.

Related Sections

Section 10(23FBA)

Frequently Asked Questions

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

Section 115UB of the Income Tax Act, 1961 covers tax on income of investment fund and its unit holders (aifs). Grants 'pass-through' status to Category I and II Alternative Investment Funds (AIFs). Income (other than PGBP) is taxed directly in the hands of the investor.

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

Section 115UB of the Income Tax Act, 1961 maps to Section 139 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained verbatim. Crucial for the venture capital and private equity ecosystem in India.

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

The transition impact for Section 115UB is rated High. Backbone of startup funding structures.

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

Loss carry-forward rules for AIFs made more investor-friendly. These points are specific to Section 115UB (Tax on income of investment fund and its unit holders (AIFs)).

Disclaimer: This mapping of Section 115UB (Tax on income of investment fund and its unit holders (AIFs)) to Section 139 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 115UB is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.

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