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Income-tax Act, 2025

Income-tax Act, 2025 (No. 30 of 2025), as amended by the Finance Act, 2026 — the new consolidated income-tax law that replaces the Income-tax Act, 1961 with effect from 1 April 2026 (Tax Year 2026-27). Browse all sections below, each with the official text; plain-language summaries are being added.

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Chapter I — Preliminary
§ 1Short title, extent and commencement§ 2Definitions§ 3Tax year
Chapter II — Basis Of Charge
§ 4Charge of Income-tax§ 5Scope of total income§ 6Residence in India§ 7Income deemed to be received and dividend deemed to be income in a tax year§ 8Section 8§ 9Income deemed to accrue or arise in India§ 10Apportionment of income between spouses governed by Portuguese Civil Code
Chapter III — Incomes Which Do Not Form Part Of Total Income
§ 11Incomes not included in total income§ 12Incomes not included in total income of political parties and electoral trusts
Chapter IV — Computation Of Total Income
§ 13Heads of income§ 14Section 14§ 15Salaries§ 16Income from salary§ 17Scheme referred to in section 125. Perquisite§ 18Profits in lieu of salary§ 19Deductions from salaries§ 20Income from house property§ 21Determination of annual value§ 22Deductions from income from house property§ 23Arrears of rent and unrealised rent received subsequently§ 24Property owned by co-owners§ 25Interpretation§ 26Income under head “Profits and gains of business or profession”§ 27Manner of computing profits and gains of business or profession§ 28Rent, rates, taxes, repairs and insurance§ 29Deductions related to employee welfare§ 30Deduction on certain premium§ 31Deduction for bad debt and provision for bad and doubtful debt§ 32Other deductions§ 33Deduction for depreciation§ 34General conditions for allowable deductions§ 35Amounts not deductible in certain circumstances§ 36Expenses or payments not deductible in certain circumstances§ 37Certain deductions allowed on actual payment basis only§ 38Certain sums deemed as profits and gains of business or profession§ 39Computation of actual cost§ 40Special provision for computation of cost of acquisition of certain assets§ 41Written down value of depreciable asset§ 42Capitalising impact of foreign exchange fluctuation§ 43Taxation of foreign exchange fluctuation§ 44Amortisation of certain preliminary expenses§ 45Expenditure on scientific research§ 46Capital expenditure of specified business§ 47Expenditure on agricultural extension project and skill development project§ 48Section 48§ 49Site Restoration Fund§ 50Special provision in case of trade, profession or similar association§ 51Amortisation of expenditure for prospecting certain minerals§ 52Section 52§ 53Section 53§ 54Business of prospecting for mineral oils§ 55Insurance business§ 56Special provision in case of interest income of specified financial institutions§ 57Revenue recognition for construction and service contracts§ 58Section 58§ 59Section 59§ 60Deduction of head office expenditure in case of non-residents§ 61Section 61§ 62Maintenance of books of account§ 63Tax audit§ 64Section 64§ 65Interpretation for purposes of section 64§ 66Interpretation§ 67Capital gains§ 68Income-tax Act, 1961 (43 of 1961). Capital gains on distribution of assets by companies in liquidation§ 69Section 69§ 70Explanation 1 to section 68 of the Companies Act, 2013 (18 of 2013).] Transactions not regarded as transfer§ 71Withdrawal of exemption in certain cases§ 72Mode of computation of capital gains§ 73Cost with reference to certain modes of acquisition§ 74Section 74§ 75Special provision for cost of acquisition in case of depreciable asset§ 76Special provision for computation of capital gains in case of Market Linked Debenture§ 77Special provision for computation of capital gains in case of slump sale§ 78Special provision for full value of consideration in certain cases§ 79Section 79§ 80Fair market value deemed to be full value of consideration in certain cases§ 81Advance money received§ 82Profit on sale of property used for residence§ 83Section 83§ 84Section 84§ 85Capital gains not to be charged on investment in certain bonds§ 86Exemption On Capital Gains§ 87Section 87§ 88Section 88§ 89Irrespective of anything contained in sections 82, 83, 84, 85 and 86,—§ 90Meaning of “adjusted”, “cost of improvement” and “cost of acquisition”§ 91Reference to Valuation Officer§ 92Income from other sources§ 93Schedule II (Note 1). Deductions§ 94Amounts not deductible§ 95Profits chargeable to tax
Chapter V — Income Of Other Persons Included In Total Income Of Assessee
§ 96Transfer of income without transfer of assets§ 97Chargeability of income in transfer of assets§ 98For the purposes of sections 96 and 97, and this section,—§ 99Income of individual to include income of spouse, minor child, etc§ 100Liability of person in respect of income included in income of another person
Chapter VI — Aggregation Of Income
§ 101Total income§ 102Unexplained credits§ 103Unexplained investment§ 104Unexplained asset§ 105Unexplained expenditure§ 106Amount borrowed or repaid through negotiable instrument, hundi, etc§ 107Charge of tax
Chapter VII — Set Off, Or Carry Forward And Set Off Of Losses
§ 108SET OFF, OR CARRY FORWARD AND SET OFF OF LOSSES Set off of losses under same head of income§ 109Set off of losses under any other head of income§ 110Carry forward and set off of loss from house property§ 111Carry forward and set off of loss from Capital gains§ 112Carry forward and set off of business loss§ 113Section 113§ 114Set off and carry forward of losses computed in respect of specified business§ 115Set off and carry forward of losses from specified activity§ 116Section 116§ 117Section 117§ 118Section 118§ 119Carry forward and set off of losses not permissible in certain cases§ 120Section 120§ 121Submission of return for losses
Chapter VIII — Deductions To Be Made In Computing Total Income
§ 122Deductions to be made in computing total income§ 123An individual or a Hindu undivided family, shall be allowed a deduction§ 124Section 124§ 125Deduction in respect of contribution to Agnipath Scheme§ 126Government along with interest on both these contributions are held. Deduction in respect of health insurance premia§ 127Section 127§ 128Deduction in respect of medical treatment, etc§ 129Insurance Act, 1938 (4 of 1938). Deduction in respect of interest on loan taken for higher education§ 130Deduction in respect of interest on loan taken for residential house property§ 131Deduction in respect of interest on loan taken for certain house property§ 132Deduction in respect of purchase of electric vehicle§ 133Deduction in respect of donations to certain funds, charitable institutions, etc§ 134Deductions in respect of rents paid§ 135Section 135§ 136Deduction in respect of contributions given by companies to political parties§ 137Deduction in respect of contributions given by any person to political parties§ 138In respect of any tax year, where—§ 139In respect of any tax year, where—§ 140Special provision in respect of specified business§ 141Deduction in respect of profits and gains from certain industrial under-takings§ 142Deductions in respect of profits and gains from housing projects§ 143Special provisions in respect of certain undertakings in North-Eastern States§ 144Special provisions in respect of newly established Units in Special Economic Zones§ 145If the gross total income of an assessee includes any profits and gains§ 146Deduction in respect of additional employee cost§ 147Deductions for income of Offshore Banking Units and Units of International Financial Services Centre§ 148Deduction in respect of certain inter-corporate dividends§ 149Deduction in respect of income of co-operative societies§ 150Section 150§ 151Section 151§ 152Deduction in respect of royalty on patents§ 153Deduction for interest on deposits§ 154Deduction in case of a person with disability
Chapter IX — Rebates And Reliefs
§ 155Rebate to be allowed in computing income-tax§ 156Rebate of income-tax in case of certain individuals§ 157Relief when salary, etc., is paid in arrears or in advance§ 158Section 158§ 159Section 159§ 160Countries with which no agreement exists
Chapter X — Special Provisions Relating To A Voidance Of Tax
§ 161Section 161§ 162Meaning of associated enterprise§ 163Meaning of international transaction. [S. 92B of the 1961 Act]§ 164Meaning of specified domestic transaction§ 165Determination of arm’s length price§ 166Reference to Transfer Pricing Officer§ 167Power of Board to make safe harbour rules§ 168Advance pricing agreement§ 169Effect to advance pricing agreement§ 170Secondary adjustment in certain cases§ 171Section 171§ 172Every person who has entered into an international transaction or§ 173Definitions of certain terms relevant to determination of arm’s length price, etc§ 174Section 174§ 175Avoidance of tax by certain transactions in securities§ 176Section 176§ 177Limitation on interest deduction in certain cases
Chapter XI — General Anti-A Voidance Rule
§ 178Applicability of General Anti-Avoidance Rule§ 179Impermissible avoidance arrangement§ 180Arrangement to lack commercial substance§ 181Consequences of impermissible avoidance arrangement. [S. 98 of the 1961 Act]§ 182Treatment of connected person and accommodating party§ 183Application of this Chapter§ 184Interpretation
Chapter XII
§ 185MODE OF PAYMENT IN CERTAIN CASES, ETC. Mode of taking or accepting certain loans, deposits and specified sum§ 186Mode of undertaking transactions§ 187Acceptance of payment through prescribed electronic modes§ 188Mode of repayment of certain loans or deposits or specified advances§ 189Interpretation
Chapter XIII — Determination Of Tax In Special Cases
§ 190Where there is included in the total income of an assessee any income on§ 191Tax on accumulated balance of recognised provident fund§ 192Tax in case of block assessment of search cases§ 193Section 193§ 194Special Provisions For Taxation§ 195Tax on income referred to in sections 102 to 106§ 196Tax on short-term capital gains in certain cases§ 197Tax on long-term capital gains§ 198Tax on long-term capital gains in certain cases§ 199Tax on income of certain manufacturing domestic companies§ 200Tax on income of certain domestic companies§ 201Tax on income of new manufacturing domestic companies§ 202New tax regime for individuals, Hindu undivided family and others§ 203Tax on income of certain resident co-operative societies§ 204Tax on income of certain new manufacturing co-operative societies§ 205Conditions for tax on income of certain companies and co-operative societies§ 206Special provision for minimum alternate tax and alternate minimum tax§ 208Section 208§ 209Section 209§ 210Section 210§ 211Tax on non-resident sportsmen or sports associations§ 212Interpretation§ 213Special provision for computation of total income of non-residents§ 214Tax on investment income and long-term capital gains§ 215Section 215§ 216Return of income not to be furnished in certain cases§ 217Section 217§ 218Tax on business income of Offshore Banking Units or International Financial Services Centre unit§ 219Section 219§ 220Parliament. Foreign company said to be resident in India§ 221Tax on income from securitisation trusts§ 222Enforcement of Security Interest Act, 2002 (54 of 2002). Tax on income in case of venture capital undertakings§ 223Tax on income of unit holder and business trust§ 224Tax on income of investment fund and its unit holders§ 225Income from business of operating qualifying ships§ 226Tonnage tax scheme§ 227Computation of tonnage income§ 228Relevant shipping income and exclusion from book profit§ 229Depreciation and gains relating to tonnage tax assets§ 230Exclusion of deduction, loss, set off, etc§ 231Method of opting of tonnage tax scheme and validity§ 232Certain conditions for applicability of tonnage tax scheme§ 233Amalgamation and demerger§ 234Avoidance of tax and exclusion from tonnage tax scheme§ 235Interpretation
Chapter XIV — Tax Administration
§ 236Income-tax authorities§ 237Appointment of income-tax authorities§ 238Control of income-tax authorities§ 239Instructions to subordinate authorities§ 240Taxpayer’s Charter§ 241Jurisdiction of income-tax authorities§ 242Jurisdiction of Assessing Officers§ 243Power to transfer cases§ 244Commissioner. Change of incumbent of an office§ 245Faceless jurisdiction of income-tax authorities§ 246Power regarding discovery, production of evidence, etc§ 247Search and seizure§ 248Powers to requisition§ 249Reasons not to be disclosed§ 250Application of seized or requisitioned assets§ 251Section 251§ 252Power to call for information§ 253Powers of survey§ 254Power to collect certain information§ 255Power to inspect registers of companies§ 256Power of certain income-tax authorities§ 257Proceedings before income-tax authorities to be judicial proceedings§ 258Sanhita, 2023 (46 of 2023). Disclosure of information relating to assessees§ 259Power to call for information by prescribed income-tax authority§ 260Faceless collection of information§ 261Interpretation
Chapter XV — Return Of Income
§ 262Permanent Account Number§ 263Return of income§ 264Act, 2015 (22 of 2015). Scheme for submission of returns through tax return preparers§ 265Return by whom to be verified§ 266Self-assessment§ 267Tax on updated return
Chapter XVI — Procedure For Assessment
§ 268Inquiry before assessment§ 269Estimation of value of assets by Valuation Officer§ 270Officers in the performance of their functions. Assessment§ 271Best judgment assessment§ 272Power of Joint Commissioner to issue directions in certain cases§ 273Faceless Assessment§ 274Reference to Principal Commissioner or Commissioner in certain cases§ 275Reference to Dispute Resolution Panel§ 276XVI-B. Method of accounting§ 277Method of accounting in certain cases§ 278Taxability of certain income§ 279Income escaping assessment§ 280Issue of notice where income has escaped assessment§ 281Procedure before issuance of notice under section 280§ 282Time limit for notices under sections 280 and 281§ 283Section 283§ 284Commissioner or Commissioner.] Sanction for issue of notice§ 285Other provisions§ 286Time limit for completion of assessment, reassessment and recomputation§ 287Rectification of mistake§ 288Other amendments§ 289Notice of demand§ 290Modification and revision of notice in certain cases§ 291Intimation of loss§ 292Assessment of total undisclosed income as a result of search§ 293Computation of total undisclosed income of block period§ 294Procedure for block assessment§ 295Undisclosed income of any other person§ 296Time-limit for completion of block assessment§ 297Certain interests and penalties not to be levied or imposed§ 298Levy of interest and penalty in certain cases. [S. 158BFA of the 1961 Act]§ 299Authority competent to make assessment of block period§ 300Application of other provisions of Act§ 301Interpretation
Chapter XVII — Special Provisions Relating To Certain Persons
§ 302Legal representative§ 303Representative assessee§ 304Liability of representative assessee§ 305Right of representative assessee to recover tax paid§ 306Who may be regarded as agent§ 307Charge of tax where share of beneficiaries unknown§ 308Charge of tax in case of oral trust§ 309Section 309§ 310Section 310§ 311Section 311§ 312Executor§ 313Succession to business or profession otherwise than on death§ 314Effect of order of tribunal or court in respect of business reorganisation§ 315Assessment after partition of Hindu undivided family§ 316Shipping business of non-residents§ 317Assessment of persons leaving India§ 318Section 318§ 319Assessment of persons likely to transfer property to avoid tax§ 320Discontinued business§ 321Association dissolved or business discontinued§ 322Company in liquidation§ 323Liability of directors of private company§ 324Charge of tax in case of a firm§ 325Assessment as a firm§ 326Assessment when section 325 not complied with§ 327Change in constitution of a firm§ 328Succession of one firm by another firm§ 329Joint and several liability of partners for tax payable by firm§ 330Firm dissolved or business discontinued§ 331Liability of partners of limited liability partnership in liquidation§ 332Application for registration§ 333Switching over of regimes§ 334Tax on income of registered non-profit organisation§ 335Regular income§ 336Taxable regular income§ 337Specified income§ 338Income not to be included in regular income§ 339Corpus donation§ 340Deemed corpus donation§ 341Application of income§ 342Accumulated income§ 343Deemed accumulated income§ 344Business undertaking held as property§ 345Restriction on commercial activities by a registered non-profit organisation§ 346No registered non-profit organisation, carrying out advancement of any§ 347Books of account§ 348Section 348§ 349Return of income§ 350Permitted modes of investment§ 351Specified violation§ 352Tax on accreted income§ 353Other violations§ 354Application for approval for purpose of section 133(1)(b)(ii)§ 355Interpretation
Chapter XVIII — Appeals, Revisions And Alternate Dispute Resolutions
§ 356Appealable orders before Joint Commissioner (Appeals)§ 357Appealable orders before Commissioner (Appeals)§ 358Form of appeal and limitation§ 359Procedure in appeal§ 360Principal Commissioner or Commissioner. Powers of Joint Commissioner (Appeals) or Commissioner (Appeals)§ 361Appellate Tribunal§ 362Appeals to Appellate Tribunal§ 363Orders of Appellate Tribunal§ 364Procedure of Appellate Tribunal§ 365Appeal to High Court§ 366Case before High Court to be heard by not less than two Judges§ 367Appeal to Supreme Court§ 368Hearing before Supreme Court§ 369Tax to be paid irrespective of appeal, etc§ 370Execution for costs awarded by Supreme Court§ 371Amendment of assessment on appeal§ 372Exclusion of time taken for copy§ 373Filing of appeal by income-tax authority§ 374Interpretation of “High Court”§ 375Procedure when assessee claims identical question of law is pending before High Court or Supreme Court§ 376Section 376§ 377Commissioner or Principal Commissioner or Commissioner Revision of orders prejudicial to revenue§ 378Revision of other orders§ 379Dispute Resolution Committee§ 380Interpretation§ 381Board for Advance Rulings§ 382Vacancies, etc., not to invalidate proceedings§ 383Rulings. Application for advance ruling§ 384Procedure on receipt of application§ 385Appellate authority not to proceed in certain cases§ 386Advance ruling to be void in certain circumstances§ 387Powers of the Board for Advance Rulings§ 388Procedure of Board for Advance Rulings§ 389Appeal
Chapter XIX — Collection And Recovery Of Tax
§ 390Deduction or collection at source and advance payment§ 391Direct payment§ 392Salary and accumulated balance due to an employee§ 393Tax to be deducted at source§ 394Collection of tax at source§ 395Certificates§ 396Tax deducted is income received§ 397Compliance and reporting§ 398Consequences of failure to deduct or pay or, collect or pay§ 399Processing§ 400Power of Central Government to relax provisions of this Chapter§ 401Bar against direct demand on assessee§ 402Interpretation§ 403Liability for payment of advance tax§ 404Conditions of liability to pay advance tax§ 405Computation of advance tax§ 406Payment of advance tax by assessee on his own accord§ 407Payment of advance tax by assessee in pursuance of order of Assessing Officer§ 408Instalments of advance tax and due dates§ 409When assessee is deemed to be in default§ 410Credit for advance tax§ 411When tax payable and when assessee deemed in default§ 412Penalty payable when tax in default§ 413Certificate by Tax Recovery Officer and validity thereof§ 414Tax Recovery Officer by whom recovery is to be effected§ 415Section 415§ 416Other modes of recovery§ 417Recovery through State Government§ 418Recovery of tax in pursuance of agreements with foreign countries§ 419Recovery of penalties, fine, interest and other sums§ 420Tax clearance certificate§ 421Recovery by suit or under other law not affected§ 422Recovery of tax arrear in respect of non-resident from his assets§ 423Interest for defaults in furnishing return of income§ 424Interest for defaults in payment of advance tax§ 425Interest for deferment of advance tax§ 426Interest on excess refund§ 427Section 427§ 428Fee for default in furnishing return of income, audited accounts and reports§ 429Fee for default relating to statement or certificate§ 430Fee for default relating to intimation of Aadhaar number
Chapter XX — Refunds
§ 431Refunds§ 432Person entitled to claim refund in certain special cases§ 433Form of claim for refund and limitation§ 434Refund for denying liability to deduct tax in certain cases§ 435Refund on appeal, etc§ 436Correctness of assessment not to be questioned§ 437Interest on refunds§ 438Set off and withholding of refunds in certain cases
Chapter XXI — Penalties
§ 439Penalty for under-reporting and misreporting of income§ 440[ (1) An assessee may make an application to the Assessing Officer to grant§ 441Failure to keep, maintain or retain books of account, documents, etc§ 442Section 442§ 443Penalty in respect of certain income§ 444Penalty for false entry, etc., in books of account§ 445Benefits to related persons§ 446Section 446§ 447Penalty for failure to furnish report under section 172§ 448Penalty for failure to deduct tax at source§ 449Penalty for failure to collect tax at source§ 450Penalty for failure to comply with provisions of section 185§ 451Penalty for failure to comply with provisions of section 186§ 452Penalty for failure to comply with provisions of section 187§ 453Penalty for failure to comply with provisions of section 188§ 454Where any person, who is required to furnish a statement of financial trans-§ 455Section 455§ 456If any eligible investment fund required to furnish a statement or any§ 457Penalty for failure to furnish information or document under section 171§ 458Transfer Pricing Officer as referred to in section 166 or the Commissioner (Appeals). Penalty for failure to furnish information o§ 459Section 459§ 460Penalty for failure to submit statement under section 505§ 461Penalty for failure to furnish statements, etc§ 462If any person, who is required to furnish information under section 397(3)(d),§ 463Assessing Officer may impose a penalty of ` 100000 on such person. Penalty for furnishing incorrect information in reports or cert§ 464Penalty for failure to furnish statements, etc§ 465Section 465§ 466Penalty for failure to comply with the provisions of section 254§ 467Penalty for failure to comply with the provisions of 14[sections 262 and 397]§ 468Penalty for failure to comply with the provisions of section 397§ 469Power to reduce or waive penalty, etc., in certain cases§ 470Penalty not to be imposed in certain cases§ 471Procedure§ 472Bar of limitation for imposing penalties
Chapter XXII — Offences And Prosecution
§ 473Whoever contravenes any order referred to in section 247(4) shall be§ 474If a person, who is required to afford the authorised officer with the necessary§ 475Removal, concealment, transfer or delivery of property to prevent tax recovery§ 476Failure to pay tax to credit of Central Government under Chapter XIX-B§ 477Failure to pay tax collected at source§ 478Wilful attempt to evade tax, etc§ 479Failure to furnish returns of income§ 480If a person wilfully fails to furnish in due time the return of income, setting§ 481Failure to comply with a direction of special audit or valuation§ 482False statement in verification, etc§ 483Falsification of books of account or document, etc§ 484Abetment of false return, etc§ 485Punishment for second and subsequent offences§ 486Punishment not to be imposed in certain cases§ 487Offences by companies§ 488Offences by Hindu undivided family§ 489Presumption as to assets, books of account, etc., in certain cases§ 490Presumption as to culpable mental state§ 491Prosecution to be at instance of Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner§ 492Certain offences to be non-cognizable§ 493Sanhita. Proof of entries in records or documents§ 494Disclosure of particulars by public servants§ 495Special Courts§ 496Offences triable by Special Court§ 497Trial of offences as summons case§ 498Section 498
Chapter XXIII — Miscellaneous
§ 499Certain transfers to be void§ 500Provisional attachment to protect revenue in certain cases§ 501Director or Director. Service of notice, generally§ 502Authentication of notices and other documents§ 503Service of notice when family is disrupted or firm etc., is dissolved§ 504Service of notice in case of discontinued business§ 505Submission of statement by a non-resident having liaison office§ 506Furnishing of information or documents by an Indian concern in certain cases§ 507Section 507§ 508Section 508§ 509Obligation to furnish information on transaction of crypto-asset§ 510Annual information statement§ 511Furnishing of report in respect of international group§ 512Publication of information respecting assessees in certain cases§ 513Appearance by registered valuer in certain matters§ 514Registration of valuers§ 515Appearance by authorised representative§ 516Rounding off of amount of total income, or amount payable or refundable§ 517Receipt to be given§ 518Indemnity§ 519Power to tender immunity from prosecution§ 520Act to which he would otherwise have been liable. Cognizance of offences§ 521The provisions of the Probation of Offenders Act, 1958 (20 of 1958) and§ 522Section 522§ 523Notice deemed to be valid in certain circumstances§ 524Presumption as to assets, books of account, etc§ 525Authorisation and assessment in case of search or requisition§ 526Bar of suits in civil courts§ 527Section 527§ 528Where, the approval of the Central Government or the Board is required to§ 529Power to withdraw approval§ 530Act to have effect pending legislative provision for charge of tax§ 531Where the Central Government considers it necessary or expedient so to do§ 532Act, 1961 (43 of 1961). Power to frame schemes§ 533Power to make rules§ 534Laying before Parliament§ 535Removal of difficulties§ 536Repeal and savings