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The Income Tax Act 1961 was repealed under Section 536 of the new Act from April 1, 2026.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

Section 263 → Section 315

Revision of orders prejudicial to revenue

RetainedCritical - A nightmare scenario for taxpayers where a closed, favorable assessment is reopened from the top.

Quick Answer

Section 263 of the Income Tax Act, 1961 (Revision of orders prejudicial to revenue) corresponds to Section 315 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.

What changed for Section 263

The starting point is Section 263 of the Income Tax Act, 1961 — revision of orders prejudicial to revenue. Gives power to the Principal Commissioner (PCIT) to call for and examine records. If the AO's order is 'erroneous in so far as it is prejudicial to the interests of the revenue', PCIT can revise, cancel, or order fresh assessment.

From 1st April 2026, the same subject sits at Section 315 of the Income-tax Act, 2025 — retained and renumbered as Section 315 of the Income-tax Act, 2025. Retained as a massive safeguard for the department. Often invoked if the AO failed to make necessary inquiries.

For Section 263, the practical impact is rated Critical. A nightmare scenario for taxpayers where a closed, favorable assessment is reopened from the top.

Old Law (ITA 1961)Ch: XX

Sec 263

Provision Summary

Gives power to the Principal Commissioner (PCIT) to call for and examine records. If the AO's order is 'erroneous in so far as it is prejudicial to the interests of the revenue', PCIT can revise, cancel, or order fresh assessment.

New Law (ITA 2025)Ch: XXII

Sec 315

Provision Summary

Retained as a massive safeguard for the department. Often invoked if the AO failed to make necessary inquiries.

Key Changes & Highlights

AI tools actively scan assessment orders to suggest potential Section 263 revisions to the PCIT.

Frequently Asked Questions

What is Section 263 of the Income Tax Act, 1961 about?

Section 263 of the Income Tax Act, 1961 covers revision of orders prejudicial to revenue. Gives power to the Principal Commissioner (PCIT) to call for and examine records. If the AO's order is 'erroneous in so far as it is prejudicial to the interests of the revenue', PCIT can revise, cancel, or order fresh assessment.

Which section replaces Section 263 in the Income-tax Act, 2025?

Section 263 of the Income Tax Act, 1961 maps to Section 315 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained as a massive safeguard for the department. Often invoked if the AO failed to make necessary inquiries.

What is the impact of the change to Section 263 under the new tax code?

The transition impact for Section 263 is rated Critical. A nightmare scenario for taxpayers where a closed, favorable assessment is reopened from the top.

What should I watch out for when Section 263 moves to the 2025 code?

AI tools actively scan assessment orders to suggest potential Section 263 revisions to the PCIT. These points are specific to Section 263 (Revision of orders prejudicial to revenue).

Disclaimer: This mapping of Section 263 (Revision of orders prejudicial to revenue) to Section 315 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 263 is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.

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