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The Income Tax Act 1961 was repealed under Section 536 of the new Act from April 1, 2026.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 35DD → Section 36

Amortisation of expenditure in case of amalgamation or demerger

RetainedMedium - Important for corporate M&A teams.

Quick Answer

Section 35DD of the Income Tax Act, 1961 (Amortisation of expenditure in case of amalgamation or demerger) corresponds to Section 36 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.

What changed for Section 35DD

Section 35DD of the 1961 Act sets out the rules on amortisation of expenditure in case of amalgamation or demerger. Allows an Indian company to deduct expenses incurred wholly and exclusively for amalgamation or demerger in 5 equal annual installments.

From 1st April 2026, the same subject sits at Section 36 of the Income-tax Act, 2025 — retained and renumbered as Section 36 of the Income-tax Act, 2025. Retained. Supports corporate restructuring by making legal and professional fees tax-deductible over time.

For Section 35DD, the practical impact is rated Medium. Important for corporate M&A teams.

Old Law (ITA 1961)Ch: IV-D

Sec 35DD

Provision Summary

Allows an Indian company to deduct expenses incurred wholly and exclusively for amalgamation or demerger in 5 equal annual installments.

New Law (ITA 2025)Ch: VI

Sec 36

Provision Summary

Retained. Supports corporate restructuring by making legal and professional fees tax-deductible over time.

Key Changes & Highlights

No major change.

Frequently Asked Questions

What is Section 35DD of the Income Tax Act, 1961 about?

Section 35DD of the Income Tax Act, 1961 covers amortisation of expenditure in case of amalgamation or demerger. Allows an Indian company to deduct expenses incurred wholly and exclusively for amalgamation or demerger in 5 equal annual installments.

Which section replaces Section 35DD in the Income-tax Act, 2025?

Section 35DD of the Income Tax Act, 1961 maps to Section 36 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Supports corporate restructuring by making legal and professional fees tax-deductible over time.

What is the impact of the change to Section 35DD under the new tax code?

The transition impact for Section 35DD is rated Medium. Important for corporate M&A teams.

Disclaimer: This mapping of Section 35DD (Amortisation of expenditure in case of amalgamation or demerger) to Section 36 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 35DD is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.

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