🚨 FY 2026-27 Update
The New Income Tax Act, 2025 is now effective. Old Section 192 (TDS on salary) is now Section 392. Old Section 54 (capital gain) is now Section 82. Old Section 206C (TCS) is now Section 394. This page is your complete old-to-new section reference.
⚡ Quick Reference: Most Searched Changes
India's income tax landscape is undergoing its most significant transformation in over six decades. The New Income Tax Act, 2025 — set to replace the Income Tax Act, 1961 — brings sweeping changes in structure, section numbering, and compliance provisions. With FY 2026-27 already underway, taxpayers, CAs, and businesses must understand these changes to avoid compliance gaps.
This comprehensive guide breaks down all four critical transition areas: TDS section renumbering, TCS section renumbering, income tax form renumbering, and the new capital gain exemption sections — all based on the official New Income Tax Act, 2025 framework.
- The New Income Tax Act, 2025 replaces the Income Tax Act, 1961 with completely renumbered sections effective FY 2026-27
- Old TDS sections (192–194T) are renumbered under Chapter 393 of the new Act
- TCS provisions under Section 206C are reorganised under Section 394 of the new Act
- Capital gain exemption sections like 54, 54B, 54EC, 54F are renumbered to Sections 82–91 in the new Act
- Income tax forms (ITR-1 to ITR-6) retain their filing logic but are restructured under new schedules
- TDS rates and thresholds remain largely the same — only section numbers have changed
- New Section 402 defines "specified persons" liable for TDS — replacing earlier scattered definitions
Why Is the Income Tax Act Being Replaced?
The Income Tax Act, 1961 has been amended over 4,500 times in six decades, making it one of the most complex tax laws globally. The New Income Tax Act, 2025 aims to simplify language, consolidate provisions, remove redundancies, and make compliance easier for common taxpayers. The new Act does not change tax rates in most cases — it simply restructures and renumbers the law for clarity.
The transition affects every person filing taxes — salaried employees, businesses, professionals, and even non-residents. Understanding the section mapping is critical for correctly quoting section numbers in TDS certificates, challans, forms, and legal documents from FY 2026-27 onwards.
1. TDS Section Renumbering Under New IT Act, 2025
All Tax Deducted at Source (TDS) provisions are now consolidated under Chapter 393 of the New Income Tax Act, 2025. The table below maps every old TDS section to its new equivalent for FY 2026-27:
| Old Section | New Section (IT Act 2025) | Nature of Payment | Threshold (₹) | Rate — Indiv/HUF | Rate — Co./Firm |
|---|---|---|---|---|---|
| 192 | 392 | Salary | ₹4,00,000 | Slab Rate | N/A |
| 192A | 392(7) | Accumulated PF balance due to employee | ₹50,000 | 10% | N/A |
| 193 | 393(1)[S.No.5(i)], 393(4)[S.No.6] | Interest on Securities | ₹10,000 | 10% | 10% |
| 194 | 393(4)[S.No.10] | Dividend (domestic company — any shareholder) | Nil / ₹10,000 | 10% | 10% |
| 194A | 393(1)[S.No.5(ii),(iii)], 393(4)[S.No.7] | Interest other than on securities (Bank/Co-op/PO: Senior Citizen ₹1L, Others ₹50K; Other payers ₹10K) | ₹10,000–₹1,00,000 | 10% | 10% |
| 194B | 393(3)[S.No.1] | Winnings from lottery or crossword puzzle | ₹10,000* | 30% | 30% |
| 194BA | 393(3)[S.No.2] | Winnings from online games | No limit | 30% | 30% |
| 194BB | 393(3)[S.No.3] | Winnings from horse race | ₹10,000* | 30% | 30% |
| 194C | 393(1)[S.No.6(i)], 393(4)[S.No.8] | Payment to contractors (single ₹30K / aggregate ₹1L per FY) | ₹30,000 / ₹1,00,000 | 1% | 2% |
| 194D | 393(1)[S.No.1(i)] | Insurance Commission | ₹20,000 | 2% | 2% |
| 194EE | 393(3)[S.No.6] | NSS deposit payments | ₹2,500 | 10% | 10% |
| 194G | 393(3)[S.No.4] | Commission on lottery ticket sales | ₹20,000 | 2% | 2% |
| 194DA | 393(1)[S.No.8(I)] | Payment under life insurance policy | ₹1,00,000 | 2% | 2% |
| 194H | 393(1)[S.No.1(ii)] | Commission / Brokerage | ₹20,000 | 2% | 2% |
| 194I (Land/Building) | 393(1)[S.No.2(ii)] | Rent — Land and Building | ₹50,000/month | 10% | 10% |
| 194I (Plant/Machinery) | 393(1)[S.No.2(ii)] | Rent — Plant and Machinery | Per month | 2% | 2% |
| 194IA | 393(1)[S.No.3(I)] | Purchase of immovable property (non-agricultural) | ₹50,00,000 | 1% | 1% |
| 194IC | 393(1)[S.No.3(ii)] | Payment to landowners under development agreement | Nil | 10% | 10% |
| 194J (Directors) | 393(1)[S.No.6(iii)] | Professional fees — directors (non-salary) | No limit | 10% | 10% |
| 194J (Technical) | 393(1)[S.No.6(iii)] | Payment for technical services | ₹50,000 | 2% | 2% |
| 194J (Others) | 393(1)[S.No.6(iii)] | Professional fees — others (royalty, software) | ₹50,000 | 10% | 10% |
| 194K | 393(1)[S.No.4(I)] | Income from mutual fund units | ₹10,000 | 10% | 10% |
| 194LA | 393(1)[S.No.3(iii)] | Compensation on acquisition of immovable property | ₹5,00,000 | 10% | 10% |
| 194LBA | 393(3)[S.No.5] | Cash payment by bank/co-op/post office (co-op ₹3Cr; others ₹1Cr) | ₹1Cr / ₹3Cr | 2% | 2% |
| 194O | 393(1)[S.No.8(v)], 393(4)[S.No.11] | E-commerce operator to participant (Indiv/HUF ₹5L; others Nil) | ₹5,00,000 / Nil | 0.1% | 0.1% |
| 194Q | 393(1)[S.No.8(ii)] | Purchase of goods — buyer with turnover above ₹10 crore | ₹50,00,000 | 0.1% | 0.1% |
| 194R | 393(1)[S.No.8(iv)] | TDS on benefit/perquisite in business or profession | ₹20,000 | 10% | 10% |
| 194S | 393(1)[S.No.8(vi)], 393(4)[S.No.12] | TDS on Virtual Digital Assets — small payer ₹50K; others ₹10K | ₹10,000 / ₹50,000 | 1% | 1% |
| 194T | 393(3)[S.No.7] | Payment to partners of firms (interest/remuneration) | ₹20,000 | 10% | 10% |
Important — Section 402 (Specified Persons): The new Act introduces Section 402, Clause 37 which defines a "specified person" — an individual or HUF whose total sales, gross receipts, or turnover exceeds ₹1 crore (business) or ₹50 lakh (profession) in the preceding FY. Specified persons are liable to deduct TDS where other individuals may not be.
2. TCS Section Renumbering Under New IT Act, 2025
Tax Collected at Source (TCS) provisions previously under Section 206C of the old Act are now reorganised under Section 394 of the New Income Tax Act, 2025. Here is the complete mapping for FY 2026-27:
| Old Section | New Section (IT Act 2025) | Nature of Collection | TCS Rate |
|---|---|---|---|
| 206C(1) — Alcoholic liquor | 394(1)(a) | Sale of alcoholic liquor for human consumption | 1% |
| 206C(1) — Timber (forest lease) | 394(1)(b) | Timber obtained under forest lease | 2.5% |
| 206C(1) — Timber (others) | 394(1)(c) | Timber obtained by any other mode | 2.5% |
| 206C(1) — Forest produce | 394(1)(d) | Any other forest produce (not timber or tendu leaves) | 2.5% |
| 206C(1) — Scrap | 394(1)(e) | Scrap | 1% |
| 206C(1) — Minerals | 394(1)(f) | Minerals — coal, lignite, iron ore | 1% |
| 206C(1C) | 394(3) | Parking lot, toll plaza, mining/quarrying (lease/licence) | 2% |
| 206C(1F) | 394(2) | Sale of motor vehicles above ₹10 lakh | 1% |
| 206C(1G)(a) | 394(5)(a) | Foreign remittance under LRS — education via loan 0.5%; others 5% (threshold ₹7 lakh per year) | 0.5% / 5% |
| 206C(1G)(b) | 394(5)(b) | Overseas tour package sold by travel agent (up to ₹7L: 5%; above: 20%) | 5% / 20% |
| 206C(1H) | 394(4) | Sale of goods exceeding ₹50 lakh in a FY — seller with turnover above ₹10 crore | 0.1% |
| 206C — Luxury goods (new) | 394(7) | Sale of luxury goods above ₹10 lakh (watches, handbags, art, yachts, etc.) | 1% |
Key TCS changes to note:
- LRS remittances for education (via loan) attract only 0.5% TCS above ₹7 lakh — much lower than the standard 5%
- Overseas tour package TCS is 20% above ₹7 lakh — very high; plan accordingly
- New luxury goods TCS (Section 394(7)) is a fresh provision with no old equivalent — applies to watches, handbags, art, antiques, aircraft, yachts, and similar high-value items above ₹10 lakh
3. Income Tax Form Renumbering
The New Income Tax Act, 2025 restructures forms and schedules. While ITR form numbers (ITR-1 through ITR-6) are retained for taxpayer familiarity, the internal schedule numbers, annexures, and section references inside forms have been updated. Here is the complete mapping of commonly used tax forms:
| Old Form / Section | New Form / Section (IT Act 2025) | Purpose |
|---|---|---|
| Form 16 (under Sec. 203) | Form 16 (under Sec. 392 / 396) | TDS certificate for salary — issued by employer |
| Form 16A (under Sec. 203) | Form 16A (under Sec. 396) | TDS certificate for non-salary payments |
| Form 24Q | Form 24Q (revised schedule) | Quarterly TDS statement — salary |
| Form 26Q | Form 26Q (revised schedule) | Quarterly TDS statement — non-salary (residents) |
| Form 27Q | Form 27Q (revised schedule) | TDS statement — payments to non-residents |
| Form 27EQ | Form 27EQ (revised schedule) | TCS quarterly statement |
| Form 26AS (Sec. 203AA) | Annual Tax Statement (Sec. 536) | Consolidated annual tax statement — TDS/TCS/advance tax/refund |
| Form 15G / 15H (Sec. 197A) | Form 15G / 15H (Sec. 397) | Self-declaration for nil TDS — below-exemption income / senior citizens |
| Form 10IE / 10IEA | Declaration form under Sec. 169 | Option to choose between old and new tax regime |
| Form 67 (Foreign Tax Credit) | Form under Sec. 238 | Claiming foreign tax credit under DTAA |
| ITR-1 (Sahaj) | ITR-1 (Sahaj) — new schedule structure | Salaried individuals — income up to ₹50 lakh |
| ITR-2 | ITR-2 — new schedule structure | Individuals/HUF — capital gains, multiple properties, foreign income |
| ITR-3 | ITR-3 — new schedule structure | Individuals/HUF — business or profession income |
| ITR-4 (Sugam) | ITR-4 (Sugam) — new schedule structure | Presumptive taxation — individuals, HUF, firms |
| ITR-5 | ITR-5 — new schedule structure | Firms, LLPs, AOPs, BOIs |
| ITR-6 | ITR-6 — new schedule structure | Companies (except those claiming Sec. 11 exemption) |
Critical note: When responding to tax notices, TDS mismatch letters, or filing for FY 2026-27 and later, always quote the new section number. For FY 2025-26 and earlier assessments, continue using old section numbers.
4. Capital Gain Exemption Sections — Old vs New
Capital gain exemption sections are among the most frequently used provisions by individual taxpayers and investors. The New Income Tax Act, 2025 renumbers these under a fresh sequence while keeping all conditions and benefits intact. Here is the complete mapping:
| Old Section | New Section (IT Act 2025) | Exemption — Nature and Key Conditions |
|---|---|---|
| Section 54 | Section 82 | Sale of residential house property: LTCG exemption if proceeds reinvested in 1 residential house property — purchase within 1 year before or 2 years after sale (or constructed within 3 years). Maximum exemption capped at ₹10 crore. Available to individuals and HUFs only. |
| Section 54B | Section 84 | Sale of agricultural land: Capital gain exemption if agricultural land sold and proceeds invested in another agricultural land within 2 years of sale. Available to individuals and HUFs only. |
| Section 54D | Section 85 | Compulsory acquisition of industrial undertaking: Exemption if gains from compulsory acquisition are reinvested in land or building for industrial use within 3 years. |
| Section 54EC | Section 86 | Investment in specified bonds (NHAI/REC): LTCG exemption up to ₹50 lakh if invested in notified long-term bonds within 6 months of transfer. Lock-in period: 5 years. Applies to land and building LTCG. |
| Section 54EE | Section 87 | Investment in units of specified fund: LTCG exemption up to ₹50 lakh if invested in units of a fund notified by the Central Government within 6 months of transfer. |
| Section 54F | Section 88 | Sale of any long-term asset (other than house): Full exemption on net consideration if entire amount invested in 1 residential house property. Proportionate exemption if partial investment. Maximum ₹10 crore cap. Taxpayer must not own more than 1 house on date of transfer. |
| Section 54G | Section 89 | Shifting from urban area — industrial undertaking: Exemption if plant/machinery/building/land shifted from urban to non-urban area and gains reinvested within 1 year before or 3 years after transfer. |
| Section 54GA | Section 90 | Shifting to Special Economic Zone (SEZ): Exemption similar to Section 54G but applicable when industrial undertaking is shifted to an SEZ. |
| Section 54GB | Section 91 | Capital gain from residential property — investment in eligible start-up: Exemption if net consideration invested in equity shares of a DPIIT-recognised eligible start-up within the ITR filing due date. |
| Section 112A | Section 168 | LTCG on listed equity/equity mutual funds: Gains up to ₹1.25 lakh exempt per year; gains above ₹1.25 lakh taxed at 12.5% (without indexation). STT must have been paid on acquisition and transfer. |
| Section 111A | Section 167 | STCG on listed equity/equity mutual funds: Flat 20% tax rate (increased from 15% effective 23 July 2024 in Budget 2024). STT must have been paid. |
₹10 crore cap remains: The cap on exemptions under new Section 82 (old Sec. 54) and Section 88 (old Sec. 54F) continues. Any gains above ₹10 crore from residential property sale are fully taxable even if reinvested. If you're selling a high-value property, use the Capital Gain Calculator to compute your exact tax liability.
What Stays the Same in FY 2026-27
Despite the massive restructuring, the following are unchanged:
- New tax regime slabs: ₹0–4L: Nil | ₹4–8L: 5% | ₹8–12L: 10% | ₹12–16L: 15% | ₹16–20L: 20% | ₹20–24L: 25% | Above ₹24L: 30%
- Section 87A rebate: ₹60,000 rebate making income up to ₹12 lakh effectively tax-free under the new regime
- TDS rates: Most TDS rates are unchanged — only section numbers have changed
- ITR filing deadline: 31 July 2026 for non-audit; 31 October 2026 for audit cases
- Advance tax dates: 15 June, 15 September, 15 December, 15 March — unchanged
- Capital gain reinvestment windows: 2-year and 3-year windows for all exemption sections — unchanged
- Section 80C deductions: ₹1.5 lakh limit under old regime — unchanged
Practical Steps for the Transition
- Update your accounting software: Ensure payroll and TDS software quotes new section numbers in Form 24Q, 26Q, and challans from April 2026
- Revise contract agreements: Any business agreement mentioning TDS sections should be updated to reference the new Act sections going forward
- Train your accounts team: Accounts staff must know both old and new section numbers during the transition period — especially for any notice responses
- Capital gain planning: If selling property in FY 2026-27, your CA must cite the new section number (e.g., Sec. 82 instead of Sec. 54) in the ITR
- Check your tax statement: Use TaxFetch's Form 26AS Fetch Tool to download your Annual Tax Statement and verify all TDS entries are correctly mapped
- Calculate your liability: Use the Income Tax Calculator to verify your tax position under the new regime for FY 2026-27
Frequently Asked Questions
When does the New Income Tax Act, 2025 come into effect?
The New Income Tax Act, 2025 is effective from FY 2026-27 (AY 2027-28). TDS and TCS section renumbering applies to payments made on or after April 1, 2026. For ITR filings for FY 2025-26 (AY 2026-27) and earlier, old section references continue to apply.
Do I need to use new section numbers when filing ITR for FY 2025-26?
No. For returns filed for FY 2025-26 (AY 2026-27), continue using old section numbers — Section 54, 194C, 206C, etc. New section numbers (Section 82, 393, 394) apply from FY 2026-27 returns filed in AY 2027-28 onwards.
Is Section 54 capital gain exemption removed in the new Act?
No, Section 54 is not removed — it is renumbered to Section 82 in the New Income Tax Act, 2025. All conditions remain exactly the same: residential property, 1-year before / 2-year after purchase window, 3-year construction window, and the ₹10 crore maximum cap. The benefit is fully intact.
What is the new section for TDS on salary?
TDS on salary under old Section 192 is now covered under Section 392 of the New Income Tax Act, 2025. The threshold is ₹4,00,000 (aligned with new tax regime basic exemption limit) and tax is deducted at applicable slab rates — exactly as before.
What is Section 394 in the New IT Act?
Section 394 consolidates all TCS (Tax Collected at Source) provisions that were under old Section 206C of the Income Tax Act, 1961. It covers TCS on alcoholic liquor, scrap, forest produce, motor vehicles, foreign remittance (LRS), overseas tour packages, sale of goods above ₹50 lakh, and luxury goods above ₹10 lakh.
Has TDS on contractor payments changed under the new Act?
The TDS rate on contractor payments remains 1% for individuals/HUFs and 2% for companies/firms. Old Section 194C is now Section 393(1)[S.No.6(i)] and 393(4)[S.No.8]. The threshold remains ₹30,000 per single transaction or ₹1 lakh in aggregate per FY — no change in practical application.
Will old TDS challans with old section numbers be rejected?
No. The Income Tax Department maintains a complete mapping of old to new section numbers. Challans filed with old section numbers for FY 2025-26 and earlier will continue to be processed correctly. TRACES and the IT portal will manage the transition without creating Form 26AS mismatches.
Conclusion
The transition from the Income Tax Act, 1961 to the New Income Tax Act, 2025 is the most comprehensive reform in India's direct tax history. While the change may seem overwhelming, the good news is that tax rates, exemptions, and timelines remain largely unchanged — what has changed is the structure and section numbering.
Whether you're a salaried employee, a business deducting TDS, or an investor claiming capital gain exemptions — this guide gives you the complete old-to-new section mapping to stay fully compliant in FY 2026-27 and beyond. Bookmark this page as your quick reference for the new Income Tax Act, 2025.
Use TaxFetch India's suite of tax tools — from the Income Tax Calculator to the Capital Gain Calculator and Form 26AS Fetch — to manage your compliance seamlessly under the new Act.
What is the new section number for TDS on professional fees (Section 194J)?
Old Section 194J is now mapped to Section 393(1)[S.No.6(iii)] under the New Income Tax Act, 2025. TDS rates remain: 10% for professional fees and director payments, 2% for technical services, both with ₹50,000 threshold (no limit for directors).
What is the new section for TDS on rent (Section 194I)?
Old Section 194I on rent is now Section 393(1)[S.No.2(ii)] under the new Act. Rates remain 10% for land/building (threshold ₹50,000 per month) and 2% for plant and machinery. No change in practical TDS calculation.
What changes for Section 206C TCS in the new income tax act 2025?
All TCS provisions under old Section 206C are now consolidated under Section 394 of the New Income Tax Act, 2025. Specifically: 206C(1) goods → Section 394(1), 206C(1F) motor vehicles → Section 394(2), 206C(1C) parking/toll → Section 394(3), 206C(1H) sale of goods → Section 394(4), 206C(1G) foreign remittance/LRS → Section 394(5), and luxury goods TCS → Section 394(7).
Has Form 26AS been renamed in the new income tax act?
Yes. Form 26AS under old Section 203AA has been restructured and is now governed by Section 536 of the New Income Tax Act, 2025, referred to as the Annual Tax Statement. It continues to show TDS, TCS, advance tax, self-assessment tax, and refund details — the content remains the same, only the section reference changes.
What is the new section number for Section 54EC (capital gain bonds)?
Old Section 54EC — which allows capital gain exemption by investing in NHAI/REC bonds within 6 months — is now Section 86 under the New Income Tax Act, 2025. The exemption limit of ₹50 lakh and 5-year lock-in period remain unchanged.
What are the new TDS rate changes from April 1, 2026?
The good news is that TDS rates have not changed from April 1, 2026. The New Income Tax Act, 2025 has only renumbered the sections — the actual rates, thresholds, and conditions remain the same. For example, TDS on salary is still at slab rates, contractor TDS is still 1%/2%, and professional fee TDS is still 10%/2%. Only the section numbers you quote in challans and returns will change.
Which ITR form should I use for capital gains in FY 2026-27?
For reporting capital gains in FY 2026-27 (AY 2027-28), use ITR-2 (if you have capital gains but no business income) or ITR-3 (if you also have business/profession income). ITR-1 allows reporting of LTCG under new Section 168 (old 112A) up to ₹1.25 lakh only. The form numbers remain the same — internal schedule references use new section numbers.
Is there a Section 54 equivalent in the New Income Tax Act 2025 for first-time homebuyers?
Yes. Old Section 54 — the most commonly used capital gain exemption for residential property — is now Section 82 of the New Income Tax Act, 2025. All benefits are fully preserved: reinvest LTCG in 1 residential house property within 2 years of sale (or 3 years if constructing), maximum exemption of ₹10 crore. First-time homebuyers using capital gains from another property get the same benefit under the new section number.