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The Income Tax Act 1961 was repealed under Section 536 of the new Act from April 1, 2026.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 2025Set off and Carry Forward

Section 74A → Section 97

Losses from certain specified sources falling under Income from other sources

RetainedLow - Niche provision for racehorse owners.

Quick Answer

Section 74A of the Income Tax Act, 1961 (Losses from certain specified sources falling under Income from other sources) corresponds to Section 97 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.

What changed for Section 74A

Section 74A of the 1961 Act sets out the rules on losses from certain specified sources falling under income from other sources. Loss from the activity of owning and maintaining racehorses can only be set off against income from the same activity. Carry forward for 4 years.

From 1st April 2026, the same subject sits at Section 97 of the Income-tax Act, 2025 — retained and renumbered as Section 97 of the Income-tax Act, 2025. Retained. Restricts niche losses from offsetting regular income.

For Section 74A, the practical impact is rated Low. Niche provision for racehorse owners.

Old Law (ITA 1961)Ch: VI

Sec 74A

Provision Summary

Loss from the activity of owning and maintaining racehorses can only be set off against income from the same activity. Carry forward for 4 years.

New Law (ITA 2025)Ch: X

Sec 97

Provision Summary

Retained. Restricts niche losses from offsetting regular income.

Key Changes & Highlights

No structural change.

Frequently Asked Questions

What is Section 74A of the Income Tax Act, 1961 about?

Section 74A of the Income Tax Act, 1961 covers losses from certain specified sources falling under income from other sources. Loss from the activity of owning and maintaining racehorses can only be set off against income from the same activity. Carry forward for 4 years.

Which section replaces Section 74A in the Income-tax Act, 2025?

Section 74A of the Income Tax Act, 1961 maps to Section 97 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Restricts niche losses from offsetting regular income.

What is the impact of the change to Section 74A under the new tax code?

The transition impact for Section 74A is rated Low. Niche provision for racehorse owners.

Disclaimer: This mapping of Section 74A (Losses from certain specified sources falling under Income from other sources) to Section 97 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 74A is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.

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