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The Income Tax Act 1961 was repealed under Section 536 of the new Act from April 1, 2026.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

Section 68 → Section 86

Cash credits

RetainedCritical - Primary weapon against shell companies and black money.

Quick Answer

Section 68 of the Income Tax Act, 1961 (Cash credits) corresponds to Section 86 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.

What changed for Section 68

In the 1961 statute, Section 68 deals with cash credits. Any sum found credited in the books for which no satisfactory explanation is offered is taxed as unexplained cash credit.

From 1st April 2026, the same subject sits at Section 86 of the Income-tax Act, 2025 — retained and renumbered as Section 86 of the Income-tax Act, 2025. Retained and tightened. The onus of proving the source of funds, as well as the 'source of the source' (for share capital/premium), lies entirely on the assessee.

For Section 68, the practical impact is rated Critical. Primary weapon against shell companies and black money.

Old Law (ITA 1961)Ch: VI

Sec 68

Provision Summary

Any sum found credited in the books for which no satisfactory explanation is offered is taxed as unexplained cash credit.

New Law (ITA 2025)Ch: X

Sec 86

Provision Summary

Retained and tightened. The onus of proving the source of funds, as well as the 'source of the source' (for share capital/premium), lies entirely on the assessee.

Key Changes & Highlights

Taxed at an exorbitant flat rate (Section 115BBE) with no basic exemption limit or deductions allowed.

Related Sections

Section 115BBE

Frequently Asked Questions

What is Section 68 of the Income Tax Act, 1961 about?

Section 68 of the Income Tax Act, 1961 covers cash credits. Any sum found credited in the books for which no satisfactory explanation is offered is taxed as unexplained cash credit.

Which section replaces Section 68 in the Income-tax Act, 2025?

Section 68 of the Income Tax Act, 1961 maps to Section 86 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained and tightened. The onus of proving the source of funds, as well as the 'source of the source' (for share capital/premium), lies entirely on the assessee.

What is the impact of the change to Section 68 under the new tax code?

The transition impact for Section 68 is rated Critical. Primary weapon against shell companies and black money.

What should I watch out for when Section 68 moves to the 2025 code?

Taxed at an exorbitant flat rate (Section 115BBE) with no basic exemption limit or deductions allowed. These points are specific to Section 68 (Cash credits).

Disclaimer: This mapping of Section 68 (Cash credits) to Section 86 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 68 is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.

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