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The Income Tax Act 1961 was repealed under Section 536 of the new Act from April 1, 2026.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

Section 2(42A) → Section 2(65)

Short-term capital asset

RetainedVery High - Determines the tax rate applicable on sale.

Quick Answer

Section 2(42A) of the Income Tax Act, 1961 (Short-term capital asset) corresponds to Section 2(65) of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.

What changed for Section 2(42A)

Under the Income Tax Act, 1961, Section 2(42A) governs short-term capital asset. Asset held for not more than 36 months (or 12/24 months for specified assets like shares/real estate).

Under the Income-tax Act, 2025 (effective 1st April 2026), Section 2(42A) is retained and renumbered as Section 2(65) of the Income-tax Act, 2025. Holding periods simplified. The 36-month, 24-month, and 12-month criteria are streamlined to reduce complexity for unlisted shares and mutual funds.

The transition impact on Section 2(42A) is assessed as Very High. Determines the tax rate applicable on sale.

Old Law (ITA 1961)Ch: I

Sec 2(42A)

Provision Summary

Asset held for not more than 36 months (or 12/24 months for specified assets like shares/real estate).

New Law (ITA 2025)Ch: I

Sec 2(65)

Provision Summary

Holding periods simplified. The 36-month, 24-month, and 12-month criteria are streamlined to reduce complexity for unlisted shares and mutual funds.

Key Changes & Highlights

Holding periods heavily standardized across asset classes to end classification disputes.

Related Sections

Section 111A Section 112

Frequently Asked Questions

Which subject does Section 2(42A) of the 1961 Act cover?

Section 2(42A) of the Income Tax Act, 1961 covers short-term capital asset. Asset held for not more than 36 months (or 12/24 months for specified assets like shares/real estate).

What is the new section number for Section 2(42A) under the Income-tax Act, 2025?

Section 2(42A) of the Income Tax Act, 1961 maps to Section 2(65) of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Holding periods simplified. The 36-month, 24-month, and 12-month criteria are streamlined to reduce complexity for unlisted shares and mutual funds.

How does the Income-tax Act, 2025 affect Section 2(42A) in practice?

The transition impact for Section 2(42A) is rated Very High. Determines the tax rate applicable on sale.

What is new about Section 2(42A) under the Income-tax Act, 2025?

Holding periods heavily standardized across asset classes to end classification disputes. These points are specific to Section 2(42A) (Short-term capital asset).

Disclaimer: This mapping of Section 2(42A) (Short-term capital asset) to Section 2(65) of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 2(42A) is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.

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