← Back to IT Act 2025 Overview
How to use this table: Find the section number cited in your notice in the 1961 Act column. The equivalent provision in the 2025 Act is shown alongside, with a note on any substantive change. Remember: if your notice relates to AY 2026-27 or earlier, it will cite the 1961 Act — even if issued after 1 April 2026. The 2025 Act applies only to Tax Year 2026-27 (1 April 2026) onwards.
Returns & Filing
| 1961 Act | 2025 Act | Subject | Change |
|---|---|---|---|
| Sec 139(1) | Sec 263(1) |
Mandatory filing of return of income (ITR)
Income threshold, due dates, and categories of mandatory filers remain unchanged.
|
Same |
| Sec 139(4) | Sec 263(4) |
Belated return — filing after due date but within the same year
Window: up to 31 December of the Assessment Year (31 December of the Tax Year end under 2025 Act).
|
Same |
| Sec 139(5) | Sec 263(5) |
Revised return — correcting errors in an already-filed return
Can be filed up to 31 December of the Assessment Year / Tax Year end.
|
Same |
| Sec 139(8A) | Sec 263(6) |
Updated return (ITR-U) — voluntary disclosure of missed income
Changed: Window extended from 24 months to 48 months from end of Tax Year under the 2025 Act.
See IT Act 2025 guide →
|
Changed |
| Sec 139(9) | Sec 263(9) |
Defective return — notice to rectify and refile
15-day window to respond. Failure makes the return invalid. Substantively unchanged.
Guide: Defective Return Notice →
|
Same |
| Sec 140A | Sec 264 |
Self-assessment tax — tax payable along with return filing
Includes interest under Sections 234A, 234B, and 234C.
|
Same |
Assessment & Scrutiny
| 1961 Act | 2025 Act | Subject | Change |
|---|---|---|---|
| Sec 142(1) | Sec 268(1) |
Pre-assessment inquiry notice — request for documents or information
Issued before scrutiny assessment. Substantively unchanged.
Guide: Section 142(1) Notice →
|
Same |
| Sec 143(1) | Sec 270(1) |
Intimation — processing of return, adjustments, and refund/demand communication
The initial communication after ITR processing. No change in scope.
|
Same |
| Sec 143(2) | Sec 270(8) |
Scrutiny notice — selection for detailed assessment
Must be issued within 3 months of end of year in which return is filed. Faceless assessment is a statutory right under Section 275 of the 2025 Act.
Guide: Scrutiny Notice →
|
Changed |
| Sec 143(3) | Sec 270(3) |
Scrutiny assessment order — final order passed after scrutiny proceedings
|
Same |
| Sec 144 | Sec 271 |
Best judgment assessment — where taxpayer fails to file return or comply with notices
|
Same |
| Sec 144B | Sec 275 |
Faceless assessment procedure
Changed: Under the 2025 Act, faceless assessment is a statutory right of the taxpayer, not merely a procedural mechanism. Previously it was a discretionary scheme under Section 144B of the 1961 Act.
|
Changed |
| — | Sec 240 NEW |
Taxpayer's Charter — codified rights and obligations of taxpayers
New in 2025 Act: The Taxpayer's Charter (previously only an executive commitment) is now a statutory provision. Includes the right to be treated with courtesy, the right to certainty, and the right to timely decisions.
|
New |
Reassessment & Reopening
| 1961 Act | 2025 Act | Subject | Change |
|---|---|---|---|
| Sec 147 | Sec 280 |
Grounds for reopening — income has escaped assessment
Conditions: information in the AO's possession suggesting escaped income. The 3-year / 10-year time limits continue under the 2025 Act.
|
Same |
| Sec 148A | Sec 281 |
Show-cause notice before reassessment — mandatory pre-notice opportunity
30-day reply window (extendable). AO must pass a speaking order before issuing the Section 148 / 281 notice. Supreme Court has reaffirmed that compressed timelines are insufficient.
Guide: Section 148A Notice →
|
Same |
| Sec 148 | Sec 281 |
Reassessment notice — issued after Section 148A / Section 281 order
Under the 2025 Act, both the pre-notice procedure and the reassessment notice are housed in Section 281.
Guide: Reassessment Notices →
|
Changed |
| Sec 153 | Sec 286 |
Time limits for completion of assessment and reassessment
|
Same |
| Sec 153A / 153C | Sec 247 / 248 |
Assessment in search cases (post-search reassessment)
10-year assessment window in search cases continues.
|
Same |
Demand, Recovery & Refund
| 1961 Act | 2025 Act | Subject | Change |
|---|---|---|---|
| Sec 156 | Sec 288 |
Notice of demand — formal demand for tax, interest, or penalty payable
30-day payment window. Dispute via Section 246A (1961) / Section 356 (2025) appeal. Substantively unchanged.
Guide: Demand Notice →
|
Same |
| Sec 220 | Sec 296 |
When tax is payable and interest for default
1% per month interest on outstanding demand continues.
|
Same |
| Sec 220(6) | Sec 296(6) |
Stay of demand during appeal — application to AO to treat demand as stayed
Typically 20% of disputed demand must be paid to secure stay. Procedurally unchanged.
|
Same |
| Sec 237 | Sec 330 |
Refund — entitlement to refund of excess tax paid
|
Same |
| Sec 240 | Sec 332 |
Refund on appeal — refund granted consequent to appellate order
|
Same |
| Sec 245 | Sec 334 |
Set-off of refund against tax demand — notice before adjustment
Department must issue notice before adjusting your refund against any outstanding demand. 30-day reply window to object or confirm demand status.
Guide: Refund Adjustment Notice →
|
Same |
| Sec 244A | Sec 333 |
Interest on refund — 6% per annum where refund is delayed beyond 3 months
|
Same |
Penalties & Interest
| 1961 Act | 2025 Act | Subject | Change |
|---|---|---|---|
| Sec 234A | Sec 311 |
Interest for delay in filing return — 1% per month from due date to actual filing date
|
Same |
| Sec 234B | Sec 312 |
Interest for default in advance tax — 1% per month where advance tax paid is less than 90% of assessed tax
|
Same |
| Sec 234C | Sec 313 |
Interest for deferment of advance tax instalments
|
Same |
| Sec 270A | Sec 337 |
Penalty for under-reporting or misreporting of income
50% of tax on under-reported income; 200% for misreporting. Definition of under-reporting and misreporting unchanged.
|
Same |
| Sec 271 | Sec 338 |
Penalty for concealment of income (pre-2017 cases — still applied to AY 2015-16 and earlier)
|
Same |
| Sec 271B | Sec 339 |
Penalty for failure to get accounts audited (tax audit)
0.5% of turnover or ₹1.5 lakh, whichever is lower.
|
Same |
| Sec 276C | Sec 348 |
Prosecution for wilful attempt to evade tax
Rigorous imprisonment from 3 months to 7 years (where tax evaded exceeds ₹25 lakh). Unchanged.
|
Same |
Appeals & Revision
| 1961 Act | 2025 Act | Subject | Change |
|---|---|---|---|
| Sec 246A | Sec 356 |
Appeal to Commissioner of Income Tax (Appeals) [CIT(A)] / Faceless Appeal Unit
30-day filing window from date of order. Pre-payment of admitted demand required.
|
Same |
| Sec 250 | Sec 360 |
Procedure in appeal before CIT(A)
|
Same |
| Sec 253 | Sec 362 |
Appeal to Income Tax Appellate Tribunal (ITAT)
60-day filing window from CIT(A) order. No pre-deposit for filing (though demanded in practice).
|
Same |
| Sec 254 | Sec 363 |
Orders of the ITAT — powers and scope of Tribunal orders
|
Same |
| Sec 260A | Sec 368 |
Appeal to High Court — on a substantial question of law
|
Same |
| Sec 263 | Sec 372 |
Revision by Principal Commissioner / Commissioner — against erroneous and prejudicial orders
|
Same |
| Sec 264 | Sec 373 |
Revision in favour of assessee — application to Commissioner for correction
|
Same |
Deductions & Exemptions (Key References)
| 1961 Act | 2025 Act | Subject | Change |
|---|---|---|---|
| Sec 10 | Sec 11 |
Incomes not included in total income (exemptions) — HRA, LTA, agricultural income, gratuity, etc.
All existing exemptions are preserved. New Act consolidates sub-clauses into a cleaner structure.
|
Same |
| Sec 16 | Sec 20 |
Standard deduction for salaried individuals and pensioners
₹75,000 standard deduction continues under both regimes.
|
Same |
| Sec 54 / 54F | Sec 62 / 63 |
Capital gains exemption on reinvestment in residential property
Conditions (purchase within 2 years or construction within 3 years) unchanged.
|
Same |
| Sec 80C | Ch. VIII / Sec 123 |
Deductions for LIC premium, PF, PPF, ELSS, home loan principal, etc. (₹1.5 lakh limit)
Note: Under the New Tax Regime (Sec 115BAC / Sec 202), Chapter VI-A / Chapter VIII deductions are not available. Only the Old Regime allows 80C-type deductions.
|
Same |
| Sec 80D | Sec 124 |
Deduction for health insurance premium — ₹25,000 / ₹50,000 for senior citizens
|
Same |
| Sec 80G | Sec 128 |
Deduction for donations to approved funds and charitable institutions
100% / 50% deduction depending on the institution. Cash limit: ₹2,000 per donation.
|
Same |
| Sec 115BAC | Sec 202 |
New Tax Regime — concessional rates without most deductions and exemptions
Default regime for individuals from AY 2024-25. Rates and slabs unchanged in the 2025 Act.
|
Same |
TDS / TCS — Tax Deducted & Collected at Source
| 1961 Act | 2025 Act | Subject | Change |
|---|---|---|---|
| Sec 192 | Sec 392 |
TDS on salary — deducted by employer at applicable slab rate
Covers regular salary (code 1001), perquisites (1002), arrears/profits in lieu (1003). Rates and mechanism unchanged.
|
Same |
| Sec 192A | Sec 392(7) |
TDS on premature PF withdrawal — taxable accumulated balance paid before 5 years of continuous service
Threshold: ₹50,000. Rate: 10% (20% without PAN). Deductor: Trustees of PF / EPFO. Return code 1004.
|
Same |
| Sec 193 | Sec 393 Sl.5(i) |
TDS on interest on securities — debentures, bonds, government securities
Threshold: ₹10,000. Rate: 10%. Return code 1019.
|
Same |
| Sec 194 | Sec 393 |
TDS on dividend paid by domestic company to resident shareholders
Changed threshold: ₹10,000 for individual shareholders; ₹5,000 for other shareholders (companies, firms, etc.). Rate: 10%. Return code 1029.
|
Changed |
| Sec 194A | Sec 393 Sl.5(ii)/(iii) |
TDS on interest other than interest on securities — bank FDs, post office, other interest
Bank/Co-op (code 1020) & Post Office (code 1021): threshold ₹50,000 (₹1,00,000 for senior citizens), rate 10%. Other non-bank (code 1022): threshold ₹10,000, rate 10%.
|
Same |
| Sec 194B | Sec 393 Sl.7(i) |
TDS on winnings from lottery, crossword puzzles, card games, TV game shows (offline)
Threshold: ₹10,000 aggregate. Rate: 30%. Return code 1058.
|
Same |
| Sec 194BA | Sec 393 Sl.7(i) |
TDS on winnings from online games — fantasy sports, online gaming platforms
Threshold: ₹10,000 aggregate per FY. Rate: 30%. Return code 1060. Introduced in Finance Act 2023.
|
Same |
| Sec 194BB | Sec 393 Sl.7(ii) |
TDS on winnings from horse races
Threshold: ₹10,000. Rate: 30%. Return code 1062.
|
Same |
| Sec 194C | Sec 393 Sl.6(i) |
TDS on payments to contractors — work contracts, labour supply, sub-contracts
Threshold: ₹30,000 (single) / ₹1,00,000 (annual). Rate: 1% (Individual/HUF, code 1023) or 2% (Company/Firm/AOP, code 1024). Unchanged.
|
Same |
| Sec 194D | Sec 393 Sl.1(i) |
TDS on insurance commission — paid to insurance agents for procuring/renewing policies
Threshold: ₹20,000. Rate: 2% (individuals); 10% when recipient is a domestic company. Return code 1005.
|
Same |
| Sec 194H | Sec 393 Sl.1(ii) |
TDS on commission or brokerage (non-insurance) — marketing commission, sales brokerage
Threshold: ₹20,000. Rate: 2%. Return code 1006.
|
Same |
| Sec 194I(a) | Sec 393 Sl.2(ii)(a) |
TDS on rent — plant, machinery or equipment
Threshold: ₹50,000 per month. Rate: 2%. Return code 1008.
|
Same |
| Sec 194I(b) | Sec 393 Sl.2(ii)(b) |
TDS on rent — land, building, furniture or fittings
Threshold: ₹50,000 per month. Rate: 10%. Return code 1009.
|
Same |
| Sec 194IA | Sec 393 Sl.3 |
TDS on transfer of immovable property — purchase of land or building (not agricultural land)
Threshold: ₹50 lakh (consideration or stamp duty value). Rate: 1%. Deductor: buyer. Return code 1012.
|
Same |
| Sec 194IB | Sec 393 Sl.2(i) |
TDS on rent paid by Individual/HUF not required to deduct under Sec 194I (below audit threshold)
Threshold: ₹50,000 per month. Rate: 2%. Return code 1010.
|
Same |
| Sec 194J | Sec 393 Sl.6(iii) |
TDS on fees for professional or technical services, royalty, and director fees
Changed: Professional fees (code 1026): threshold increased ₹30,000 → ₹50,000, rate 10%. Technical/consultancy services (code 1027): threshold ₹50,000, rate 2% (was 10%). Director fees (code 1028): threshold is Nil, rate 10%.
Full TDS rate table →
|
Changed |
| Sec 194K | Sec 393 Sl.4(i) |
TDS on income from mutual fund units / UTI successor / specified company
Threshold: ₹10,000. Rate: 10%. Return code 1013.
|
Same |
| Sec 194LBA | Sec 393 Sl.4(ii) |
TDS on income distributed by Business Trusts (REIT / InvIT) to resident unitholders
No threshold. Rate: 10%. Covers interest (code 1014), dividend (code 1015), and other income (code 1016).
|
Same |
| Sec 194M | Sec 393 Sl.6(ii) |
TDS by Individual/HUF on contract or professional fees where Sec 194C/194J does not apply
Threshold: ₹50 lakh aggregate per FY. Rate: 2%. Return code 1025.
|
Same |
| Sec 194N | Sec 393 Sl.9 |
TDS on cash withdrawals exceeding prescribed limits from bank / co-op bank / post office
Changed: The non-filer surcharge (5% on withdrawals above ₹20 lakh) has been abolished under IT Act 2025. Standard rate remains 2% above ₹1 crore (code 1064); co-operative societies pay 2% above ₹3 crore (code 1065).
|
Changed |
| Sec 194O | Sec 393 Sl.8(v) |
TDS on payments to e-commerce participants (sellers/service providers on platforms)
Threshold: ₹5,00,000 for Ind/HUF participants. Rate: 0.1%. Return code 1035.
|
Same |
| Sec 194Q | Sec 393 Sl.8(ii) |
TDS on purchase of goods — buyer deducts when purchase value from one seller exceeds ₹50 lakh in FY
Rate: 0.1% (5% without PAN). Applicable where TCS under Sec 206C(1H) / Sec 394 is not applicable. Return code 1036.
|
Same |
| Sec 194R | Sec 393 Sl.8(iv) |
TDS on business benefits / perquisites — cash or non-cash benefits given in business/professional context
Threshold: ₹20,000 per recipient per FY. Rate: 10%. Return codes 1033 (cash) and 1034 (non-cash/kind).
|
Same |
| Sec 194S | Sec 393 Sl.8(ii) |
TDS on transfer of Virtual Digital Assets (VDA) — cryptocurrency, NFTs
Rate: 1%. Exchange/operator deducts (code 1037, no threshold); P2P buyer deducts (code 1038, threshold ₹50,000 for Ind/HUF).
|
Same |
| Sec 194T | Sec 393 Sl.8(iii) |
TDS on salary, remuneration, commission, bonus or interest paid by a partnership firm / LLP to its partners
Threshold: ₹20,000. Rate: 10%. Return code 1067. Introduced Finance Act 2024, effective 1 April 2025.
|
Same |
| Sec 195 | Sec 393(2) |
TDS on payments to non-residents — interest, royalty, fees for technical services, capital gains, etc.
Rate: "rates in force" under Finance Act or applicable DTAA rates (whichever is beneficial). Always obtain TRC and Form 10F for DTAA benefit. Substantively unchanged.
|
Same |
| Sec 200A | Sec 399 |
Processing of TDS return and issue of intimation — automated processing, interest and fee calculation
Intimation issued after processing Form 26Q / new Form 140. Any short-deduction or late-filing fee demand is raised under this section.
Guide: TDS Notice Handling →
|
Same |
| Sec 201 | Sec 398 |
Consequences of failure to deduct or pay TDS — default order, interest at 1%/1.5% per month
1% per month for failure to deduct; 1.5% per month for failure to deposit after deduction. Deductor treated as "assessee in default."
|
Same |
| Sec 206AA | Sec 393 (note) |
Higher TDS rate where payee does not furnish PAN — deduct at higher of applicable rate or 20%
Provision continues under IT Act 2025 (incorporated as a note to Sec 393). No separate section number assigned; built into the TDS table itself.
|
Same |
| Sec 206AB | Omitted |
Higher TDS for non-filers of ITR — previously required 5%/doubled rate where payee had not filed ITR for 2 years
Omitted with effect from 1 April 2025. No ITR-filing compliance check required for TDS purposes from FY 2025-26 onwards.
|
Omitted |
| Sec 206C | Sec 394 |
Tax Collected at Source (TCS) — on sale of alcohol, tendu leaves, timber, scrap, minerals, motor vehicles, LRS remittances, overseas tour packages
Key rates: 2% on alcohol/tendu/timber/scrap/minerals; 1% on motor vehicles >₹10 lakh; LRS — Nil (education via loan), 2% (education/medical), 20% (other purposes); overseas tour packages 2%. All consolidated into Sec 394 Sl.1–9.
Full TCS rate table →
|
Same |
| Sec 234E | Sec 427 |
Fee for late filing of TDS / TCS return — ₹200 per day of delay
Fee accrues from the due date of filing until the return is filed. Cannot exceed the TDS amount. Raised automatically on processing under Sec 399 / new Sec 399.
|
Same |
Last reviewed: June 2026 · Section numbers for the IT Act 2025 are based on the Act as enacted and in force from 1 April 2026. Where only approximate equivalents exist, this is noted. For proceedings relating to AY 2026-27 or earlier, the 1961 Act and its section numbers apply without exception.