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The Income Tax Act 1961 was repealed under Section 536 of the new Act from April 1, 2026.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 80LA → Section 142

Deductions in respect of certain incomes of Offshore Banking Units and IFSC

RetainedHigh - Crucial for India's push to become a global financial hub.

Quick Answer

Section 80LA of the Income Tax Act, 1961 (Deductions in respect of certain incomes of Offshore Banking Units and IFSC) corresponds to Section 142 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.

What changed for Section 80LA

Under the Income Tax Act, 1961, Section 80LA governs deductions in respect of certain incomes of offshore banking units and IFSC. Provides 100% deduction for 10 years out of 15 years for units established in International Financial Services Centres (IFSC) or Offshore Banking Units.

From 1st April 2026, the same subject sits at Section 142 of the Income-tax Act, 2025 — retained and renumbered as Section 142 of the Income-tax Act, 2025. Retained and Expanded. Strongly incentivizes foreign financial institutions to set up bases in GIFT City, Gujarat.

For Section 80LA, the practical impact is rated High. Crucial for India's push to become a global financial hub.

Old Law (ITA 1961)Ch: VI-A

Sec 80LA

Provision Summary

Provides 100% deduction for 10 years out of 15 years for units established in International Financial Services Centres (IFSC) or Offshore Banking Units.

New Law (ITA 2025)Ch: VIII

Sec 142

Provision Summary

Retained and Expanded. Strongly incentivizes foreign financial institutions to set up bases in GIFT City, Gujarat.

Key Changes & Highlights

Compliance requirements for IFSC units heavily streamlined to match global banking standards.

Frequently Asked Questions

What is Section 80LA of the Income Tax Act, 1961 about?

Section 80LA of the Income Tax Act, 1961 covers deductions in respect of certain incomes of offshore banking units and IFSC. Provides 100% deduction for 10 years out of 15 years for units established in International Financial Services Centres (IFSC) or Offshore Banking Units.

Which section replaces Section 80LA in the Income-tax Act, 2025?

Section 80LA of the Income Tax Act, 1961 maps to Section 142 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained and Expanded. Strongly incentivizes foreign financial institutions to set up bases in GIFT City, Gujarat.

What is the impact of the change to Section 80LA under the new tax code?

The transition impact for Section 80LA is rated High. Crucial for India's push to become a global financial hub.

What should I watch out for when Section 80LA moves to the 2025 code?

Compliance requirements for IFSC units heavily streamlined to match global banking standards. These points are specific to Section 80LA (Deductions in respect of certain incomes of Offshore Banking Units and IFSC).

Disclaimer: This mapping of Section 80LA (Deductions in respect of certain incomes of Offshore Banking Units and IFSC) to Section 142 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 80LA is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.

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