Income-tax Act 2025: Old vs New Section Numbers for Salaried Taxpayers

The Income-tax Act, 2025 came into force on 1 April 2026. It rewrites the 1961 Act in simpler language and renumbers almost every section, but for salaried people the money side is the same: the new-regime slabs, the ₹75,000 standard deduction and the ₹12 lakh rebate limit carry over unchanged for FY 2026-27.

The biggest wording change is the tax year. The old pair of “previous year” (the year you earn) and “assessment year” (the year you file) is replaced by a single tax year, so FY 2026-27 is Tax Year 2026-27.

Income you earned up to 31 March 2026 is still governed by the 1961 Act. Returns for FY 2025-26 (assessment year 2026-27) are filed under the old law: the CBDT notified the ITR forms for AY 2026-27 under the Income-tax Rules, 1962 on 30 March 2026.

Sections 123, 124, 156, 202 and 392 above were checked against their text on incometaxindia.gov.in. The 2025 Act groups the old 80C list of eligible investments into Schedule XV, which Section 123 refers to.

Under the new regime the employer NPS deduction is up to 14% of salary (available since FY 2024-25); under the old regime it is 10%. In the 2025 Act it sits in Section 124: Section 124(1) sets the 10% limit (14% for government employers) and Section 124(2) applies 14% when you are taxed under the new regime.

It is one of the few deductions the new regime allows, so restructuring part of your CTC into employer NPS can lower your tax. Your own NPS contribution of up to ₹50,000 under Section 124(3) is a separate deduction and, like Section 123, is available only in the old regime.

• Nothing changes in how much tax you pay for FY 2026-27 because of the new Act alone. Use the old vs new regime calculator as before.
• Investment declarations and proofs to your employer will quote the new section numbers (Section 123 instead of 80C).
• For FY 2025-26 returns, keep using the 1961 section numbers: that year is still under the old law.