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The Income Tax Act 1961 was repealed under Section 536 of the new Act from April 1, 2026.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 80M → Section 145

Deduction in respect of certain inter-corporate dividends

RetainedHigh - Standard holding-company tax planning mechanism.

Quick Answer

Section 80M of the Income Tax Act, 1961 (Deduction in respect of certain inter-corporate dividends) corresponds to Section 145 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.

What changed for Section 80M

In the 1961 statute, Section 80M deals with deduction in respect of certain inter-corporate dividends. Removes cascading effect of taxes by allowing a domestic company to deduct dividends received from another domestic company, foreign company, or business trust.

Under the Income-tax Act, 2025 (effective 1st April 2026), Section 80M is retained and renumbered as Section 145 of the Income-tax Act, 2025. Retained. Ensures that corporate structures holding subsidiaries are not penalized with double taxation on the same profit.

The transition impact on Section 80M is assessed as High. Standard holding-company tax planning mechanism.

Old Law (ITA 1961)Ch: VI-A

Sec 80M

Provision Summary

Removes cascading effect of taxes by allowing a domestic company to deduct dividends received from another domestic company, foreign company, or business trust.

New Law (ITA 2025)Ch: VIII

Sec 145

Provision Summary

Retained. Ensures that corporate structures holding subsidiaries are not penalized with double taxation on the same profit.

Key Changes & Highlights

Digital tracking of dividend distribution chains completely automated to verify claims.

Related Sections

Section 115O

Frequently Asked Questions

Which subject does Section 80M of the 1961 Act cover?

Section 80M of the Income Tax Act, 1961 covers deduction in respect of certain inter-corporate dividends. Removes cascading effect of taxes by allowing a domestic company to deduct dividends received from another domestic company, foreign company, or business trust.

What is the new section number for Section 80M under the Income-tax Act, 2025?

Section 80M of the Income Tax Act, 1961 maps to Section 145 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Ensures that corporate structures holding subsidiaries are not penalized with double taxation on the same profit.

How does the Income-tax Act, 2025 affect Section 80M in practice?

The transition impact for Section 80M is rated High. Standard holding-company tax planning mechanism.

What is new about Section 80M under the Income-tax Act, 2025?

Digital tracking of dividend distribution chains completely automated to verify claims. These points are specific to Section 80M (Deduction in respect of certain inter-corporate dividends).

Disclaimer: This mapping of Section 80M (Deduction in respect of certain inter-corporate dividends) to Section 145 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 80M is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.

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