Advocate Simran Kumari · Bar Enrolment BR/1115/2023 · Patna High Court
The Income tax 2025 transition is the biggest structural change in Indian direct tax law in six decades. The Income-tax Act 2025 came into force on 1 April 2026, replacing the Income-tax Act 1961, and applies from Tax Year 2026-27. Advocate Simran Kumari guides Patna taxpayers through the dual-track compliance framework — the new Act for Tax Year 2026-27 onwards, and the Income-tax Act 1961 for earlier tax years and pending proceedings, all under the Income-tax Rules 2026 and Section 536 repeals and savings.
01Apr 2026
Act 2025 In Force
536
Sections (Act 2025)
333
Rules (Rules 2026)
TY2026-27
First Tax Year
Choose your path
Pending assessment or appeal? The dual-track framework applies.
The Income-tax Act 2025 came into force on 1 April 2026. However, all proceedings relating to tax years beginning before 1 April 2026 — including pending assessments, reassessments, rectifications, penalties and appeals — continue under the Income-tax Act 1961. Getting the framework right from the start is critical.
Official Government Portals
Every notice, order and transition clarification is issued through a designated government portal. The links below are the official portals referenced throughout this page. Always verify the applicable Act and Rules against the official gazette before acting on any notice or order.
Official Income Tax & Legislative Portals
Verification before action
The e-Gazette of India publishes the official text of the Income-tax Act 2025 and the Income-tax Rules 2026. Before acting on any notice, confirm whether it relates to Tax Year 2026-27 onwards (Income-tax Act 2025) or an earlier tax year (Income-tax Act 1961) by checking the tax year stated in the notice.
Complete Transition Hub
Every transition sub-topic is organised below by stage — from the structural change to the dual-track compliance framework and the Section 536 savings provisions. Each topic is covered in detail in the sections that follow.
Structural Change
Earlier Tax Years
Section 536
Rules and Forms
Key Changes
Related Tax Practice
Can't find the transition topic you need?
Send your query and get a same-day note on the applicable Act, Rules and next steps.
Competitor & Gap Analysis
A review of the leading income tax 2025 transition pages — including Big Four tax alerts, tax portal guides and law firm advisories — shows a consistent pattern: the new Act is described, but the dual-track framework, the Section 536 savings provisions and the practical impact on Patna taxpayers are missing. The gaps below are addressed directly in the sections that follow.
| Gap observed | What most competitor pages do | What this hub does instead |
|---|---|---|
| No dual-track clarity | Describe the new Act but do not explain that the 1961 Act continues for earlier tax years | A dedicated dual-track section explaining which Act applies to which tax year |
| No Section 536 depth | Mention Section 536 in passing without explaining the savings provisions | Detailed Section 536(1) and 536(2)(c) coverage, based on CBDT's 23 transition FAQs |
| No TDS transition guidance | Ignore the fact that TDS for FY 2025-26 uses old sections while FY 2026-27 uses new sections | A dedicated TDS transition table with old vs new forms and section mapping |
| No Patna-specific impact | National content with no Patna High Court or ITAT Patna Bench authority | Patna-specific coverage of the transition's impact on pending appeals before the ITAT Patna Bench |
| No ITR-U guidance for earlier years | Do not explain that ITR-U filed in 2026 for AY 2023-24 or AY 2025-26 remains an updated return under the old Act | Dedicated ITR-U transition guidance with the AY-wise deadlines |
| No search and seizure transition | Do not explain that searches initiated before 1 April 2026 continue under the 1961 Act | A transition table covering searches, summons, notices, requisitions and post-search proceedings |
| Thin AEO/voice answers | Long analytical paragraphs without direct answers | FAQ blocks with one-paragraph direct answers optimised for AEO, VEO and LLM extraction |
| No official gazette links | Rarely link to the e-Gazette notification of the Act or Rules | Direct links to egazette.gov.in, pib.gov.in, incometax.gov.in and incometaxindia.gov.in |
Practical effect of these gaps
A taxpayer in Patna searching for guidance on the income tax 2025 transition often finds pages that describe the new Act but do not explain which Act applies to which tax year. This hub is structured the opposite way: every section starts with the statutory position, the tax year, the applicable Act and the Patna forum — so the page answers the question before it asks for the call.
Want the transition handled correctly for your matter?
Send your notice or order and get a same-day note on the applicable Act and Rules.
Practice Areas
Every matter is scoped to the tax year involved, the applicable Act and the forum. The chamber handles the full transition lifecycle from advisory to litigation.
Advising on whether a notice, order or proceeding falls under the Income-tax Act 2025 or the Income-tax Act 1961, based on the tax year stated in the document and the Section 536 savings provisions.
Representation in pending assessments, reassessments, rectifications, penalties and appeals for tax years before 1 April 2026, which continue under the Income-tax Act 1961.
Advising on TDS and TCS obligations during the transition — sums paid or credited before 31 March 2026 fall under Act 1961, and those on or after 1 April 2026 fall under Act 2025.
Advising on ITR filing and updated returns — ITR-U filed in 2026 for AY 2023-24 or AY 2025-26 remains an updated return under the old Act, while Tax Year 2026-27 filings use the new Act.
Advising on searches initiated before 1 April 2026 (which continue under Act 1961) and searches initiated on or after 1 April 2026 (which fall under Act 2025).
Advising on the continuity of existing registrations and approvals, and on pending applications seeking benefits from Tax Year 2026-27 onwards.
Not sure which transition category applies to you?
Send the document and get a same-day note on the applicable Act, tax year and forum.
Why this Chamber
01
Your income tax 2025 transition matter is handled by the advocate herself — not routed through intermediaries or call centres.
02
Familiar with both the Income-tax Act 1961 (for earlier tax years) and the Income-tax Act 2025 (from Tax Year 2026-27), and with the Section 536 savings provisions.
03
The chamber is located at P.C. Colony, Kankarbagh, Patna – 800020, easily accessible from Boring Road, Kankarbagh and central Patna.
04
Advice grounded in the official gazette notification and CBDT's transition FAQs — no exaggerated promises, no procedural shortcuts.
How to Engage
Send the document Step 01
Share the notice, order or transition query by WhatsApp or email. Acknowledge receipt is issued the same day from the Kankarbagh chamber.
Tax year assessment Step 02
A short call to establish the tax year stated in the document, the applicable Act (1961 or 2025), the forum and any immediate steps.
Written scope Step 03
A written scope of the engagement and the fee arrangement for the stage concerned, before any work begins.
Drafting and filing Step 04
Drafting, document compilation, portal filing, department representation and court appearance as applicable.
Ready to start? The first step takes two minutes.
Send your document and receive a same-day assessment from the Kankarbagh chamber.
The legal position in brief for Patna taxpayers
The Income tax 2025 transition is the replacement of the six-decade-old Income-tax Act 1961 by the Income-tax Act 2025, which came into force on 1 April 2026. The new Act applies from Tax Year 2026-27 (1 April 2026 to 31 March 2027), while the Income-tax Act 1961 continues for earlier tax years — including pending assessments, reassessments, rectifications, penalties, appeals and searches initiated before 1 April 2026.
The Income-tax Rules 2026, notified on 20 March 2026 vide Notification No. 22/2026, provide the procedural framework for the new Act. Section 536 of the Income-tax Act 2025 contains the repeals and savings provisions that govern the transition, and the CBDT has issued 23 clarificatory FAQs on the Section 536 transition provisions. For Patna taxpayers, the critical first step is to identify the tax year stated in any notice or order and apply the correct Act.
The Income-tax Act 2025 is the new direct tax statute that replaced the Income-tax Act 1961 with effect from 1 April 2026. The Bill was passed by Parliament on 12 August 2025 and received the assent of the President of India on 21 August 2025. It came into force on 1 April 2026 and applies from Tax Year 2026-27.
The new Act was enacted to provide a streamlined, simplified and modern tax code with reduced compliance burden, consolidated provisions and clear definitions. Over six decades, the Income-tax Act 1961 had accumulated numerous amendments, provisos and explanations making it complex and difficult to navigate.
The Income-tax Act 2025 does not impose any new tax. The intent behind replacing the old Act with the new Act is to simplify statutory language, improve structural clarity, reduce interpretational disputes, align drafting style with modern legislative standards and enhance voluntary compliance.
The new Act contains 536 sections and 16 schedules, compared to the 819 sections and 14 schedules of the 1961 Act. The overall complexity has been reduced because explanations and provisos have been incorporated into the main text of the sections, tables and formulas replace verbose narrative provisions, redundant and obsolete provisions have been removed, and cross-references are clearer and more direct. Similarly, the Income Tax Rules have been reduced from 511 rules with 399 forms to 333 rules with 190 forms.
| Parameter | Income-tax Act 1961 | Income-tax Act 2025 |
|---|---|---|
| Sections | 819 sections | 536 sections |
| Schedules | 14 schedules | 16 schedules |
| Chapters | Fragmented | 23 chapters |
| Rules | 511 rules | 333 rules |
| Forms | 399 forms | 190 forms |
| Word count | 5.12 lakh words | 2.6 lakh words |
| Tax period | Previous Year + Assessment Year | Tax Year |
The most visible change for taxpayers is the replacement of the dual concept of "Previous Year" and "Assessment Year" with a single concept of "Tax Year". Under the new Act, income-tax is charged on the "total income" of the "tax year" of a person at the rates specified for that tax year.
For salaried taxpayers, the standard deduction has been increased to ₹75,000 and the rebate under the new regime extends to total income up to ₹12 lakh. The HRA exemption limit for metro cities has been increased from 40% to 50% of base salary, and the list of metro cities eligible for the 50% HRA exemption has been expanded to include Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad.
Official sources for the Income-tax Act 2025
Need guidance on the Income-tax Act 2025?
Send your notice or query and get a same-day assessment.
While the Income-tax Act 2025 applies from Tax Year 2026-27, the Income-tax Act 1961 continues for earlier tax years. The CBDT has clarified that all proceedings relating to tax years beginning before 1 April 2026 will continue to be governed by the Income-tax Act 1961.
This creates a "dual-track" compliance framework during the transition. TDS payments relating to earlier years must use old sections, whereas new deductions will follow updated provisions. For TDS payments relating to FY 2025-26 and earlier, even if made after 1 April 2026, taxpayers must use the old Act.
The following matters continue to be governed by the Income-tax Act 1961:
| Tax year / event | Applicable Act | Applicable Rules |
|---|---|---|
| Tax Year 2025-26 and earlier | Income-tax Act 1961 | Income-tax Rules 1962 |
| Tax Year 2026-27 onwards | Income-tax Act 2025 | Income-tax Rules 2026 |
| Sum paid or credited on or before 31 March 2026 | Income-tax Act 1961 | Income-tax Rules 1962 |
| Sum paid or credited on or after 1 April 2026 | Income-tax Act 2025 | Income-tax Rules 2026 |
| Searches initiated before 1 April 2026 | Income-tax Act 1961 | Income-tax Rules 1962 |
| Searches initiated on or after 1 April 2026 | Income-tax Act 2025 | Income-tax Rules 2026 |
The Income Tax Department's transition FAQs expressly state that the 1961 Act continues to govern AY 2026-27 and earlier assessment years. Consequently, an ITR-U filed in October 2026 for AY 2023-24 or AY 2025-26 remains an updated return under the old Act.
Gap this hub fills — dual-track clarity
Most competitor pages describe the new Act but do not explain that the Income-tax Act 1961 continues for earlier tax years. This hub sets out the dual-track framework with a tax-year-by-tax-year table — so the correct Act is applied from day one.
Pending assessment or appeal for an earlier tax year?
Send the document and get a same-day note on the applicable Act and forum.
Section 536 of the Income-tax Act 2025 contains the repeals and savings provisions that govern the transition. Section 536(1) formally repeals the Income-tax Act 1961 with effect from 1 April 2026.
Section 536(2)(c) is the operative savings clause. It reads: "the provisions of the repealed Income-tax Act shall continue to apply to any proceeding pending on the date of commencement of this Act and to any proceedings initiated on or after the 1st April, 2026 (including notices, assessment, reassessment, re-computation, rectification, penalty, reference, revision and appeals) in respect of any tax year beginning before the 1st April, 2026 and such proceedings shall be carried out as per the procedure specified in the repealed Income-tax Act".
The CBDT issued 23 clarificatory FAQs on the Section 536 transition provisions on 6 July 2026, following representations received after the Act came into force. The FAQs cover:
Existing registrations or approvals under the 1961 Act remain protected. Where specified pending applications seek benefits from Tax Year 2026-27 onwards, they may be administratively treated under corresponding provisions of the 2025 Act.
Official sources for Section 536 transition
Gap this hub fills — Section 536 depth
Most competitor pages mention Section 536 in passing without explaining the savings provisions. This hub sets out Section 536(1) and Section 536(2)(c) with the CBDT's 23 transition FAQs — so the correct procedure is applied to every pending matter.
The Income-tax Rules 2026 were notified by the CBDT on 20 March 2026 vide Notification No. 22/2026 [F. No. 370142/41/2025-TPL] / G.S.R. 198(E). They came into force on 1 April 2026 and provide the procedural and operational framework for implementing the Income-tax Act 2025.
The new Rules replace the six-decade-old Income-tax Rules 1962 and introduce simplified, standardised and process re-engineered forms to make compliance simpler. The Rules have been reduced from 511 rules with 399 forms to 333 rules with 190 forms.
The following table sets out the key changes in forms and returns under the Income-tax Rules 2026.
| Particulars | Old (1961 Act) | New (2025 Act) |
|---|---|---|
| Salary TDS Return | Form 24Q | Form 138 |
| Non-Salary TDS Return | Form 26Q | Form 140 |
| Foreign Payment TDS Return | Form 27Q | Form 144 |
| TCS Return | Form 27EQ | Form 143 |
| TDS on Sale of Property | Form 26QB | Form 141 |
| TDS on Rent of Property | Form 26QC | Form 141 |
| Tax Audit Report | Form 3CA/3CB/3CD | Form 26 |
| Salary TDS Certificate | Form 16 | Form 130 |
| PAN application — Individual | Form 49A | Form 93 |
| PAN application — Entity | Form 49A | Form 94 |
Source: Transition of Income Tax Act 1961 into Income Tax Act 2025 — Key Changes.
Form 130 has been introduced as the new standard TDS certificate, replacing Form 16 for reporting income from salaries, pensions and certain interest earnings of senior citizens. Form 130 offers a comprehensive breakdown of income, tax deductions and deposits, and will be issued annually by employers or specified banks. The certificate must be generated through the TRACES portal and issued by 15 June of the applicable year.
Under the new framework, taxpayers will have up to 12 months from the end of the relevant assessment year to file a revised return, with a graded fee applying beyond the earlier timeline.
Official sources for the Income-tax Rules 2026
Confused about which form applies during the transition?
Send your query and get a same-day note on the correct form and Act.
The Income tax 2025 transition introduces several taxpayer-facing changes while keeping the underlying tax policy unchanged. The following table summarises the key changes.
| Change | Position under 1961 Act | Position under 2025 Act |
|---|---|---|
| Tax period | Previous Year + Assessment Year | Single "Tax Year" |
| Standard deduction | ₹50,000 | ₹75,000 |
| Rebate threshold | ₹7 lakh | ₹12 lakh (₹12.75 lakh for salaried) |
| HRA metro exemption | 40% of base salary | 50% of base salary |
| Metro cities for HRA | 4 cities | 8 cities (Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad) |
| Salary TDS certificate | Form 16 | Form 130 |
| Meal card exemption | ₹50 per meal | ₹200 per meal |
| Revised return window | End of assessment year | 12 months from end of assessment year |
Sources: NDTV Profit, MoneyLife, IndiaFilings.
The rebate under the old Section 87A has been renumbered as Section 156 in the new Act. Under the new regime, total income up to ₹12 lakh is fully tax-free by virtue of the rebate, and for salaried persons the tax-free threshold rises further to ₹12.75 lakh on account of the standard deduction of ₹75,000.
The TDS framework has been consolidated from over 60 sections into three sections (392, 393 and 394) under the new Act. The following table maps the key TDS provisions from the old Act to the new Act.
| Particulars | Old section (1961 Act) | New section (2025 Act) |
|---|---|---|
| Salary TDS | Section 192 | Section 392 (read with Schedule) |
| Interest on securities | Section 193 | Section 393 (read with Schedule) |
| Dividend TDS | Section 194 | Section 393 (read with Schedule) |
| Contractor TDS | Section 194C | Section 393 (read with Schedule) |
| Professional fees TDS | Section 194J | Section 393 (read with Schedule) |
| TDS on rent | Section 194I | Section 393 (read with Schedule) |
| TCS | Sections 206C | Section 394 (read with Schedule) |
Source: Income Tax Act 2025 — A New Era in Direct Taxation.
Gap this hub fills — TDS transition guidance
Most competitor pages ignore the fact that TDS for FY 2025-26 uses old sections while FY 2026-27 uses new sections. This hub sets out the TDS section mapping and the new form numbers — so the correct section and form are used for each payment.
The TDS obligations continue to be governed by the Act applicable to the financial year in which the sum is paid or credited. If the payment or credit happens before 31 March 2026, the Income-tax Act 1961 applies. If the payment or credit happens on or after 1 April 2026, the Income-tax Act 2025 applies.
The forms used for TDS return filing have changed under the Income-tax Rules 2026. The following table sets out the new form numbers.
| Return type | Old form (1961 Act) | New form (2025 Act) |
|---|---|---|
| Salary TDS Return | Form 24Q | Form 138 |
| Non-Salary TDS Return | Form 26Q | Form 140 |
| Foreign Payment TDS Return | Form 27Q | Form 144 |
| TCS Return | Form 27EQ | Form 143 |
| TDS on Sale of Property | Form 26QB | Form 141 |
| TDS on Rent of Property | Form 26QC | Form 141 |
Source: Transition of Income Tax Act 1961 into Income Tax Act 2025 — Key Changes.
Form 130 replaces Form 16 as the standard TDS certificate for salary income. It must be generated through the TRACES portal and issued by 15 June of the applicable year. Non-compliance renders the certificate invalid.
Need help with TDS transition compliance?
Send your query and get a same-day note on the applicable sections and forms.
The Income-tax Act 2025 is the new direct tax statute that replaced the Income-tax Act 1961 with effect from 1 April 2026. It contains 536 sections and 16 schedules, compared to the 819 sections and 14 schedules of the old Act. The new Act applies from Tax Year 2026-27.
The Income-tax Act 2025 came into force on 1 April 2026. It applies from Tax Year 2026-27 (1 April 2026 to 31 March 2027). The Income-tax Act 1961 continues for Tax Year 2025-26 and earlier.
Yes. The CBDT has clarified that all proceedings relating to tax years beginning before 1 April 2026 continue to be governed by the Income-tax Act 1961. This includes pending assessments, reassessments, rectifications, penalties and appeals.
Section 536 contains the repeals and savings provisions. Section 536(1) formally repeals the Income-tax Act 1961 with effect from 1 April 2026. Section 536(2)(c) provides that the repealed Act continues to apply to any proceeding pending on 1 April 2026 and to any proceeding initiated on or after that date in respect of any tax year beginning before 1 April 2026.
The Income-tax Rules 2026 were notified by the CBDT on 20 March 2026 vide Notification No. 22/2026 [F. No. 370142/41/2025-TPL] / G.S.R. 198(E). They came into force on 1 April 2026 and provide the procedural framework for the Income-tax Act 2025. The Rules have been reduced from 511 rules with 399 forms to 333 rules with 190 forms.
The new Act removes the dual concept of "Previous Year" and "Assessment Year" and introduces a single "Tax Year". For example, 1 April 2026 to 31 March 2027 is described as "Tax Year 2026-27". Income-tax is charged on the "total income" of the "tax year".
Check the tax year stated in the notice or order. If the tax year is 2025-26 or earlier, the Income-tax Act 1961 applies. If the tax year is 2026-27 or later, the Income-tax Act 2025 applies. Where the notice does not specify a tax year, the CBDT transition FAQs provide guidance on the correct Act.
Yes. The Income Tax Department's transition FAQs confirm that the 1961 Act continues to govern AY 2026-27 and earlier. An ITR-U filed in 2026 for AY 2023-24 or AY 2025-26 remains an updated return under the old Act.
Form 130 is the new standard TDS certificate replacing Form 16 for salary income, pensions and certain interest earnings of senior citizens. It must be generated through the TRACES portal and issued by 15 June of the applicable year.
TDS obligations are governed by the Act applicable to the financial year in which the sum is paid or credited. Sums paid or credited before 31 March 2026 use the old sections under the 1961 Act. Sums paid or credited on or after 1 April 2026 use the new sections under the 2025 Act.
Yes. The CBDT transition FAQs clarify that searches initiated before 1 April 2026 continue under the Income-tax Act 1961, while searches initiated on or after 1 April 2026 use the Income-tax Act 2025.
Send the notice, order or transition query by WhatsApp or email to the chamber. A same-day acknowledgment is issued, followed by a short assessment call to establish the tax year and applicable Act. A written scope and fee note is provided before work begins. Direct chamber access is available at P.C. Colony, Kankarbagh, Patna – 800020.
Disclaimer
This page on the income tax 2025 transition is published for general information only and does not constitute legal advice or solicitation. Income tax law, rules, forms, monetary limits and portal procedures are amended from time to time. The applicable position must be verified against the current statutory text, notifications and circulars, and against the facts of the particular matter. Engagement of the chamber is subject to a written scope and fee arrangement. No outcome is guaranteed.
Law last checked: 6 October 2026.
