What is the Direct Tax Code 2025 and when did it come into effect?

The Direct Tax Code 2025 (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The Income Tax Act 1961 was repealed under Section 536 of the new Act from April 1, 2026.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 Direct Tax Code 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 Direct Tax Code 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 DTC 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 DTC 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 DTC 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 DTC 2025 equivalents.

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ITA 1961 → DTC 2025PGBP

Section 44C → Section 55

Deduction of head office expenditure in the case of non-residents

RetainedHigh - Crucial transfer pricing and international tax provision.

Quick Answer

Section 44C of the Income Tax Act, 1961 (Deduction of head office expenditure in the case of non-residents) corresponds to Section 55 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.

Old Law (ITA 1961)Ch: IV-D

Sec 44C

Provision Summary

Restricts the deduction of executive and general administration expenses incurred by the foreign head office allocable to its Indian branch (capped at 5% of adjusted total income).

New Law (DTC 2025)Ch: VI

Sec 55

Provision Summary

Retained verbatim. Prevents foreign companies from artificially eroding the Indian tax base by allocating excessive overheads to the Indian branch.

Key Changes & Highlights

None.

Related Sections

Section 92

Frequently Asked Questions

What does Section 44C of the Income Tax Act 1961 deal with?

Section 44C (Deduction of head office expenditure in the case of non-residents) Restricts the deduction of executive and general administration expenses incurred by the foreign head office allocable to its Indian branch (capped at 5% of adjusted total income).

What is the new section number for Section 44C under the Direct Tax Code 2025?

Section 44C of the ITA 1961 maps to Section 55 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.

What is the status of Section 44C under the new tax code?

Section 44C is marked as "Retained" with status "Active". Impact: High - Crucial transfer pricing and international tax provision.

What are the key changes to Section 44C under DTC 2025?

None.

Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.

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