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The Income Tax Act 1961 was repealed under Section 536 of the new Act from April 1, 2026.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

Section 35AC

Expenditure on eligible projects or schemes

DeletedHigh - Major shift in corporate philanthropy taxation.

Quick Answer

Section 35AC (Expenditure on eligible projects or schemes) has been deleted under the Income-tax Act, 2025, effective 1st April 2026.

What changed for Section 35AC

Under the Income Tax Act, 1961, Section 35AC governs expenditure on eligible projects or schemes. Allowed 100% deduction for business expenditure incurred on promoting social and economic welfare projects.

Under the Income-tax Act, 2025 (effective 1st April 2026), this provision has been deleted — there is no successor section carrying it forward. NA. Sunset provision effective from AY 2018-19. CSR expenditure (Section 37) was explicitly made non-deductible to replace this.

The transition impact on Section 35AC is assessed as High. Major shift in corporate philanthropy taxation.

Old Law (ITA 1961)Ch: IV-D

Sec 35AC

Provision Summary

Allowed 100% deduction for business expenditure incurred on promoting social and economic welfare projects.

Removed under ITA 2025

Deleted

Provision Summary

NA. Sunset provision effective from AY 2018-19. CSR expenditure (Section 37) was explicitly made non-deductible to replace this.

Key Changes & Highlights

Phased out in favor of mandatory non-deductible CSR under the Companies Act.

Related Sections

Section 37

Frequently Asked Questions

Which subject does Section 35AC of the 1961 Act cover?

Section 35AC of the Income Tax Act, 1961 covers expenditure on eligible projects or schemes. Allowed 100% deduction for business expenditure incurred on promoting social and economic welfare projects.

Is Section 35AC of the ITA 1961 still applicable under the Income-tax Act, 2025?

Section 35AC has been deleted under the Income-tax Act, 2025, with no successor section carrying it forward from 1st April 2026. NA. Sunset provision effective from AY 2018-19. CSR expenditure (Section 37) was explicitly made non-deductible to replace this.

How does the Income-tax Act, 2025 affect Section 35AC in practice?

The transition impact for Section 35AC is rated High. Major shift in corporate philanthropy taxation.

What is new about Section 35AC under the Income-tax Act, 2025?

Phased out in favor of mandatory non-deductible CSR under the Companies Act. These points are specific to Section 35AC (Expenditure on eligible projects or schemes).

Disclaimer: This mapping of Section 35AC (Expenditure on eligible projects or schemes) under the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 35AC is currently marked Deleted, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.

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