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The Income Tax Act 1961 was repealed under Section 536 of the new Act from April 1, 2026.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

Section 88E

Rebate in respect of securities transaction tax (STT)

DeletedHigh - Historical context for stock market taxation evolution.

Quick Answer

Section 88E (Rebate in respect of securities transaction tax (STT)) has been deleted under the Income-tax Act, 2025, effective 1st April 2026.

What changed for Section 88E

Under the Income Tax Act, 1961, Section 88E governs rebate in respect of securities transaction tax (STT). Allowed the Securities Transaction Tax (STT) paid by traders to be claimed as a direct rebate against their income tax liability.

Under the Income-tax Act, 2025 (effective 1st April 2026), this provision has been deleted — there is no successor section carrying it forward. NA. Deleted. STT is no longer allowed as a rebate. Instead, it is allowed as a business expense under Section 36 for day-traders.

The transition impact on Section 88E is assessed as High. Historical context for stock market taxation evolution.

Old Law (ITA 1961)Ch: VIII

Sec 88E

Provision Summary

Allowed the Securities Transaction Tax (STT) paid by traders to be claimed as a direct rebate against their income tax liability.

Removed under ITA 2025

Deleted

Provision Summary

NA. Deleted. STT is no longer allowed as a rebate. Instead, it is allowed as a business expense under Section 36 for day-traders.

Key Changes & Highlights

Rebate mechanism dismantled.

Related Sections

Section 36

Frequently Asked Questions

Which subject does Section 88E of the 1961 Act cover?

Section 88E of the Income Tax Act, 1961 covers rebate in respect of securities transaction tax (STT). Allowed the Securities Transaction Tax (STT) paid by traders to be claimed as a direct rebate against their income tax liability.

Is Section 88E of the ITA 1961 still applicable under the Income-tax Act, 2025?

Section 88E has been deleted under the Income-tax Act, 2025, with no successor section carrying it forward from 1st April 2026. NA. Deleted. STT is no longer allowed as a rebate. Instead, it is allowed as a business expense under Section 36 for day-traders.

How does the Income-tax Act, 2025 affect Section 88E in practice?

The transition impact for Section 88E is rated High. Historical context for stock market taxation evolution.

What is new about Section 88E under the Income-tax Act, 2025?

Rebate mechanism dismantled. These points are specific to Section 88E (Rebate in respect of securities transaction tax (STT)).

Disclaimer: This mapping of Section 88E (Rebate in respect of securities transaction tax (STT)) under the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 88E is currently marked Deleted, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.

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