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The Income Tax Act 1961 was repealed under Section 536 of the new Act from April 1, 2026.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

Section 35AD (New Regime)

Investment-Linked Deductions for Cold Chains & Hospitals Removed

DeletedMedium - Forces infrastructure businesses into complex multi-year tax planning.

Quick Answer

Section 35AD (New Regime) (Investment-Linked Deductions for Cold Chains & Hospitals Removed) has been deleted under the Income-tax Act, 2025, effective 1st April 2026.

What changed for Section 35AD (New Regime)

Under the Income Tax Act, 1961, Section 35AD (New Regime) governs investment-linked deductions for cold chains & hospitals removed. 100% deduction on capital expenditure for specified businesses like cold chain facilities, hospitals, and affordable housing.

When the Income-tax Act, 2025 takes effect on 1st April 2026, Section 35AD (New Regime) is deleted rather than renumbered. Not Applicable. If a business entity chooses the concessional tax regime, the Section 35AD 100% capital expenditure deduction is disallowed.

For Section 35AD (New Regime), the practical impact is rated Medium. Forces infrastructure businesses into complex multi-year tax planning.

Old Law (ITA 1961)Ch: IV-D

Sec 35AD (New Regime)

Provision Summary

100% deduction on capital expenditure for specified businesses like cold chain facilities, hospitals, and affordable housing.

Removed under ITA 2025

Deleted

Provision Summary

Not Applicable. If a business entity chooses the concessional tax regime, the Section 35AD 100% capital expenditure deduction is disallowed.

Key Changes & Highlights

Heavy capital-intensive businesses must choose between lower tax rates or 100% CapEx deductions.

Related Sections

Section 115BAA Equivalent

Frequently Asked Questions

What is Section 35AD (New Regime) of the Income Tax Act, 1961 about?

Section 35AD (New Regime) of the Income Tax Act, 1961 covers investment-linked deductions for cold chains & hospitals removed. 100% deduction on capital expenditure for specified businesses like cold chain facilities, hospitals, and affordable housing.

What happens to Section 35AD (New Regime) in the Income-tax Act, 2025?

Section 35AD (New Regime) has been deleted under the Income-tax Act, 2025, with no successor section carrying it forward from 1st April 2026. Not Applicable. If a business entity chooses the concessional tax regime, the Section 35AD 100% capital expenditure deduction is disallowed.

What is the impact of the change to Section 35AD (New Regime) under the new tax code?

The transition impact for Section 35AD (New Regime) is rated Medium. Forces infrastructure businesses into complex multi-year tax planning.

What should I watch out for when Section 35AD (New Regime) moves to the 2025 code?

Heavy capital-intensive businesses must choose between lower tax rates or 100% CapEx deductions. These points are specific to Section 35AD (New Regime) (Investment-Linked Deductions for Cold Chains & Hospitals Removed).

Disclaimer: This mapping of Section 35AD (New Regime) (Investment-Linked Deductions for Cold Chains & Hospitals Removed) under the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 35AD (New Regime) is currently marked Deleted, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.

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