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The Income Tax Act 1961 was repealed under Section 536 of the new Act from April 1, 2026.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

Section 80IE (New Regime)

Special State Profit Deductions Scrapped in Default Regime

DeletedHigh - Could impact industrial growth policies in specific states.

Quick Answer

Section 80IE (New Regime) (Special State Profit Deductions Scrapped in Default Regime) has been deleted under the Income-tax Act, 2025, effective 1st April 2026.

What changed for Section 80IE (New Regime)

Section 80IE (New Regime) of the 1961 Act sets out the rules on special state profit deductions scrapped in default regime. Tax holiday for establishing industries in special category states (Himachal Pradesh, Uttarakhand) and North-Eastern states.

When the Income-tax Act, 2025 takes effect on 1st April 2026, Section 80IE (New Regime) is deleted rather than renumbered. Not Applicable. The territorial tax incentives are invalid under the simplified, lower-rate default tax regimes.

For Section 80IE (New Regime), the practical impact is rated High. Could impact industrial growth policies in specific states.

Old Law (ITA 1961)Ch: VI-A

Sec 80IE (New Regime)

Provision Summary

Tax holiday for establishing industries in special category states (Himachal Pradesh, Uttarakhand) and North-Eastern states.

Removed under ITA 2025

Deleted

Provision Summary

Not Applicable. The territorial tax incentives are invalid under the simplified, lower-rate default tax regimes.

Key Changes & Highlights

Companies lose tax incentives for setting up factories in hilly and North-Eastern regions if they opt for new rates.

Related Sections

Section 115BAC / 115BAA

Frequently Asked Questions

What is Section 80IE (New Regime) of the Income Tax Act, 1961 about?

Section 80IE (New Regime) of the Income Tax Act, 1961 covers special state profit deductions scrapped in default regime. Tax holiday for establishing industries in special category states (Himachal Pradesh, Uttarakhand) and North-Eastern states.

What happens to Section 80IE (New Regime) in the Income-tax Act, 2025?

Section 80IE (New Regime) has been deleted under the Income-tax Act, 2025, with no successor section carrying it forward from 1st April 2026. Not Applicable. The territorial tax incentives are invalid under the simplified, lower-rate default tax regimes.

What is the impact of the change to Section 80IE (New Regime) under the new tax code?

The transition impact for Section 80IE (New Regime) is rated High. Could impact industrial growth policies in specific states.

What should I watch out for when Section 80IE (New Regime) moves to the 2025 code?

Companies lose tax incentives for setting up factories in hilly and North-Eastern regions if they opt for new rates. These points are specific to Section 80IE (New Regime) (Special State Profit Deductions Scrapped in Default Regime).

Disclaimer: This mapping of Section 80IE (New Regime) (Special State Profit Deductions Scrapped in Default Regime) under the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 80IE (New Regime) is currently marked Deleted, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.

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