Repeal and Savings under the Income Tax Act, 2025
Section 536 of the Income Tax Act, 2025 repeals the Income-tax Act, 1961 while protecting all existing rights, liabilities, proceedings, and administrative actions under the old law. Pending assessments, appeals, penalties, refunds, and recovery proceedings relating to tax years before 1 April 2026 will continue under the repealed Act. Existing exemptions, deductions, losses, MAT credits, and depreciation benefits remain valid and can be carried forward under corresponding provisions of the new law. Notifications, rules, schemes, and approvals issued earlier also continue unless inconsistent with the new Act. Thus, the provision ensures legal continuity, administrative stability, and a smooth transition from the 1961 framework to the modernised 2025 tax regime. The Income Tax Act, 2025 came into effect from April 1 , 2026.
MINISTRY OF LAW AND JUSTICE
(Legislative Department)
New Delhi, the 21st August, 2025/Shravana 30, 1947 (Saka)
The following Act of Parliament received the assent of the President on the
21st August, 2025 and is hereby published for general information:—
THE INCOME-TAX ACT, 2025
No. 30 of 2025
[21st August, 2025.]
An Act to consolidate and amend the law relating to income-tax.
Be it enacted by Parliament in the Seventy-sixth Year of the Republic of India
as follows:—
Bill No. 104-F of 2025
THE INCOME-TAX BILL, 2025
(AS PASSED BY THE HOUSES OF PARLIAMENT)
