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The Income Tax Act 1961 was repealed under Section 536 of the new Act from April 1, 2026.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 89A → Section 157

Relief from taxation in income from retirement benefit account maintained in a notified country

RetainedHigh - Massively simplifies compliance for returning NRIs.

Quick Answer

Section 89A of the Income Tax Act, 1961 (Relief from taxation in income from retirement benefit account maintained in a notified country) corresponds to Section 157 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.

What changed for Section 89A

Section 89A of the 1961 Act sets out the rules on relief from taxation in income from retirement benefit account maintained in a notified country. Addresses the mismatch in the year of taxability of retirement funds (like 401k) for NRIs returning to India.

Under the Income-tax Act, 2025 (effective 1st April 2026), Section 89A is retained and renumbered as Section 157 of the Income-tax Act, 2025. Retained. Grants relief from double taxation without needing a complex DTAA invocation.

The transition impact on Section 89A is assessed as High. Massively simplifies compliance for returning NRIs.

Old Law (ITA 1961)Ch: VIII

Sec 89A

Provision Summary

Addresses the mismatch in the year of taxability of retirement funds (like 401k) for NRIs returning to India.

New Law (ITA 2025)Ch: IX

Sec 157

Provision Summary

Retained. Grants relief from double taxation without needing a complex DTAA invocation.

Key Changes & Highlights

Specific tracking codes added in the ITR for US, UK, and Canada retirement accounts.

Related Sections

Section 90

Frequently Asked Questions

Which subject does Section 89A of the 1961 Act cover?

Section 89A of the Income Tax Act, 1961 covers relief from taxation in income from retirement benefit account maintained in a notified country. Addresses the mismatch in the year of taxability of retirement funds (like 401k) for NRIs returning to India.

What is the new section number for Section 89A under the Income-tax Act, 2025?

Section 89A of the Income Tax Act, 1961 maps to Section 157 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Grants relief from double taxation without needing a complex DTAA invocation.

How does the Income-tax Act, 2025 affect Section 89A in practice?

The transition impact for Section 89A is rated High. Massively simplifies compliance for returning NRIs.

What is new about Section 89A under the Income-tax Act, 2025?

Specific tracking codes added in the ITR for US, UK, and Canada retirement accounts. These points are specific to Section 89A (Relief from taxation in income from retirement benefit account maintained in a notified country).

Disclaimer: This mapping of Section 89A (Relief from taxation in income from retirement benefit account maintained in a notified country) to Section 157 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 89A is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.

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