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The Income Tax Act 1961 was repealed under Section 536 of the new Act from April 1, 2026.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

Section 94 → Section 191

Avoidance of tax by certain transactions in securities (Dividend Stripping / Bonus Stripping)

RetainedHigh - Closes a major loophole used by HNIs and institutional investors.

Quick Answer

Section 94 of the Income Tax Act, 1961 (Avoidance of tax by certain transactions in securities (Dividend Stripping / Bonus Stripping)) corresponds to Section 191 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.

What changed for Section 94

Under the Income Tax Act, 1961, Section 94 governs avoidance of tax by certain transactions in securities (dividend stripping / bonus stripping). Prevents artificial loss creation by buying securities/units just before the record date (for dividend/bonus) and selling them immediately after.

The new code maps this to Section 191: the provision is retained and renumbered as Section 191 of the Income-tax Act, 2025, applying from 1st April 2026. Retained verbatim. Expanded explicitly to include bonus stripping in InvITs (Infrastructure Investment Trusts) and REITs.

On the ground, changes to Section 94 carry a High impact. Closes a major loophole used by HNIs and institutional investors.

Old Law (ITA 1961)Ch: X

Sec 94

Provision Summary

Prevents artificial loss creation by buying securities/units just before the record date (for dividend/bonus) and selling them immediately after.

New Law (ITA 2025)Ch: XII

Sec 191

Provision Summary

Retained verbatim. Expanded explicitly to include bonus stripping in InvITs (Infrastructure Investment Trusts) and REITs.

Key Changes & Highlights

Brokerage AIS data automatically flags and disallows such artificial short-term capital losses in the portal.

Frequently Asked Questions

What does Section 94 of the Income Tax Act 1961 deal with?

Section 94 of the Income Tax Act, 1961 covers avoidance of tax by certain transactions in securities (dividend stripping / bonus stripping). Prevents artificial loss creation by buying securities/units just before the record date (for dividend/bonus) and selling them immediately after.

Where does Section 94 of the ITA 1961 go under the Income-tax Act, 2025?

Section 94 of the Income Tax Act, 1961 maps to Section 191 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained verbatim. Expanded explicitly to include bonus stripping in InvITs (Infrastructure Investment Trusts) and REITs.

Why does the change to Section 94 matter for taxpayers?

The transition impact for Section 94 is rated High. Closes a major loophole used by HNIs and institutional investors.

What are the key changes to Section 94 under the Income-tax Act, 2025?

Brokerage AIS data automatically flags and disallows such artificial short-term capital losses in the portal. These points are specific to Section 94 (Avoidance of tax by certain transactions in securities (Dividend Stripping / Bonus Stripping)).

Disclaimer: This mapping of Section 94 (Avoidance of tax by certain transactions in securities (Dividend Stripping / Bonus Stripping)) to Section 191 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 94 is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.

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