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The Income Tax Act 1961 was repealed under Section 536 of the new Act from April 1, 2026.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 78 → Section 98

Carry forward and set off of losses in case of change in constitution of firm or on succession

RetainedMedium - Crucial for Partnership Firms and LLPs.

Quick Answer

Section 78 of the Income Tax Act, 1961 (Carry forward and set off of losses in case of change in constitution of firm or on succession) corresponds to Section 98 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.

What changed for Section 78

Section 78 of the 1961 Act sets out the rules on carry forward and set off of losses in case of change in constitution of firm or on succession. If a partner retires/dies, the firm cannot carry forward the loss proportionate to the share of the retired/deceased partner.

Under the Income-tax Act, 2025 (effective 1st April 2026), Section 78 is retained and renumbered as Section 98 of the Income-tax Act, 2025. Retained verbatim. Prevents artificial loss trading when partnerships are restructured.

The transition impact on Section 78 is assessed as Medium. Crucial for Partnership Firms and LLPs.

Old Law (ITA 1961)Ch: VI

Sec 78

Provision Summary

If a partner retires/dies, the firm cannot carry forward the loss proportionate to the share of the retired/deceased partner.

New Law (ITA 2025)Ch: X

Sec 98

Provision Summary

Retained verbatim. Prevents artificial loss trading when partnerships are restructured.

Key Changes & Highlights

Partner's PAN linkage instantly recalculates the allowable carry-forward loss upon filing of revised partnership deed.

Frequently Asked Questions

Which subject does Section 78 of the 1961 Act cover?

Section 78 of the Income Tax Act, 1961 covers carry forward and set off of losses in case of change in constitution of firm or on succession. If a partner retires/dies, the firm cannot carry forward the loss proportionate to the share of the retired/deceased partner.

What is the new section number for Section 78 under the Income-tax Act, 2025?

Section 78 of the Income Tax Act, 1961 maps to Section 98 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained verbatim. Prevents artificial loss trading when partnerships are restructured.

How does the Income-tax Act, 2025 affect Section 78 in practice?

The transition impact for Section 78 is rated Medium. Crucial for Partnership Firms and LLPs.

What is new about Section 78 under the Income-tax Act, 2025?

Partner's PAN linkage instantly recalculates the allowable carry-forward loss upon filing of revised partnership deed. These points are specific to Section 78 (Carry forward and set off of losses in case of change in constitution of firm or on succession).

Disclaimer: This mapping of Section 78 (Carry forward and set off of losses in case of change in constitution of firm or on succession) to Section 98 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 78 is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.

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