Section 15 → Section 20
Salaries - Basis of Charge
Quick Answer
Section 15 of the Income Tax Act, 1961 (Salaries - Basis of Charge) corresponds to Section 20 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 15
Section 15 of the 1961 Act sets out the rules on salaries - basis of charge. Salary is taxable on a 'due' or 'receipt' basis, whichever is earlier.
From 1st April 2026, the same subject sits at Section 20 of the Income-tax Act, 2025 — retained and renumbered as Section 20 of the Income-tax Act, 2025. Retained. The fundamental charging section for salary remains identical in the new Act.
For Section 15, the practical impact is rated Low. Foundational continuity.
Sec 15
Provision Summary
Salary is taxable on a 'due' or 'receipt' basis, whichever is earlier.
Sec 20
Provision Summary
Retained. The fundamental charging section for salary remains identical in the new Act.
Key Changes & Highlights
- Arrears of salary mapped directly to the new automated relief calculation matrix.
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Frequently Asked Questions
What is Section 15 of the Income Tax Act, 1961 about?
Section 15 of the Income Tax Act, 1961 covers salaries - basis of charge. Salary is taxable on a 'due' or 'receipt' basis, whichever is earlier.
Which section replaces Section 15 in the Income-tax Act, 2025?
Section 15 of the Income Tax Act, 1961 maps to Section 20 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. The fundamental charging section for salary remains identical in the new Act.
What is the impact of the change to Section 15 under the new tax code?
The transition impact for Section 15 is rated Low. Foundational continuity.
What should I watch out for when Section 15 moves to the 2025 code?
Arrears of salary mapped directly to the new automated relief calculation matrix. These points are specific to Section 15 (Salaries - Basis of Charge).
Disclaimer: This mapping of Section 15 (Salaries - Basis of Charge) to Section 20 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 15 is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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