If you are preparing to submit your Income tax this year, then there is a new provision in place. The Income Tax Act 2025, which was effective from 1 April 2026, is not a replacement of the old law; it revises the way of interaction with the tax system.
The transformation from a corrected e-filing portal to a new payment system and updated forms is already visible. However, apart from tech upgrades, there are a few crucial sections in the new law that taxpayers must comprehend.
Below are the six important sections which includes majority of what impacts your daily tax planning.
Read Also: New Income Tax Act 2025: Features and Benefits
IT Section 11: Income That Is Exempt from Tax
The section elaborates on which types of income are not included in your total taxable income. It comprises areas like charitable trusts and donations.
The same concept previously existed u/s 10 of the 1961 Act. The updated law showcases it in an organised manner, making it simpler to comprehend what qualifies for exemption and the method to claim it accurately.
IT Section 22: Deductions for House Property
The same section is crucial if you owe a home loan. It permits you to claim deductions on interest as well as principal repayment pertinent to property.
It is identical to the previous norms u/s 24; however, the updated version has the objective to eliminate confusion by specifying explicit rules. Regarding homeowners, the same implies continued tax advantages, though with clarity on eligibility and limits.
IT Section 126: Benefits of Health Insurance
Section 126 includes deductions of health and medical insurance premiums. Previously regulated u/s 80D, this provision continues to inspire individuals to invest in health cover, which is becoming increasingly important.
The latest framework eases the claiming method of such deductions and facilitates it for taxpayers to plan their finances with a long-term view.
IT Section 156: Simplified Tax Rebates
For specific individuals, the section 156 roll-out provisions for tax rebates supersede the earlier section 87A.
Here, the improvement is the ease of claiming such rebates, which lessens the tax payable amount. For eligible taxpayers, this could mean lower tax outgo with less intricacy at the time of filing.
IT Section 202: Overview of the New Tax Regime
Section 202 is crucial as it describes the new tax regime, which is now the default option for the majority of taxpayers. The same substitutes the previous framework u/s 115BAC.
The new regime offers lower tax rates with fewer deductions; however, taxpayers can still opt for the old regime if it better aligns with their financial planning. The same flexibility authorises individuals to choose according to their income structure and investment habits.
IT Section 263: Filing Your Income Tax Return
Finally, Section 263 addresses the filing of income tax returns and corresponding compliance requirements. It supersedes and simplifies provisions that were previously spread across Section 139 and pertinent notices.
The objective is to streamline the process of filing, reduce errors, and ensure effective compliance. For taxpayers, the same shows a more guided and user-friendly experience at the time of filing returns, particularly with the updated e-filing portal supporting these amendments.
Such sections specify a shift towards clarity, simplification, and better compliance, keeping the benefits that taxpayers were already aware of under the previous law.
