What is the Direct Tax Code 2025 and when did it come into effect?

The Direct Tax Code 2025 (Income Tax Act 2025) replaced the Income Tax Act 1961 from April 1, 2026. It simplifies the entire direct tax framework, renumbers sections, removes redundancies, and modernizes taxation for India.

Is the Income Tax Act 1961 still valid after April 2026?

The Income Tax Act 1961 was repealed under Section 536 of the new Act from April 1, 2026. However, all assessments, appeals, and proceedings for periods before April 1, 2026 continue under the old ITA 1961 rules.

What is the new section number for Section 80C in Income Tax Act 2025?

Section 80C of the ITA 1961 maps to Section 123 of the Direct Tax Code 2025. Deductions for LIC premiums, PPF, ELSS, EPF, and home loan principal repayment continue under the new act.

What is the new section for TDS on professional fees (194J)?

Section 194J (TDS on professional and technical services) of the old Income Tax Act 1961 has been renumbered in the Direct Tax Code 2025. Use our free converter at ita1961to2025.in to find the exact new section number instantly.

How do I convert old income tax section numbers to new 2025 numbers?

Visit ita1961to2025.in and use the free section search tool. Type any old ITA 1961 section number (e.g., 80C, 194J, 139) and instantly see the new DTC 2025 equivalent, its status, and key changes.

Is the ITA 1961 to 2025 mapping tool free for CAs and tax professionals?

Yes, completely free. The section mapper, comparison cheat sheet, PDF download, and Tax Academy blog are all free for Chartered Accountants, tax lawyers, law students, and taxpayers.

Which sections were completely deleted in the new Income Tax Act 2025?

Several redundant and overlapping sections from ITA 1961 were not carried into DTC 2025. Use our free converter — each section is marked as Retained, Modified, or Deleted so you can quickly check any section's status.

Can I download the ITA 1961 to DTC 2025 comparison as a PDF?

Yes! Visit the Comparison page at ita1961to2025.in/comparison to download a free cheat sheet PDF showing side-by-side mapping of key ITA 1961 sections to their DTC 2025 equivalents.

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ITA 1961 → DTC 2025Corporate Taxation

Section 115QA → Section 138

Tax on distributed income to shareholders (Buyback Tax)

RetainedCritical - Completely alters the corporate strategy of returning cash via share buybacks vs dividends.

Quick Answer

Section 115QA of the Income Tax Act, 1961 (Tax on distributed income to shareholders (Buyback Tax)) corresponds to Section 138 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.

Old Law (ITA 1961)Ch: XII-DA

Sec 115QA

Provision Summary

Domestic companies pay a flat 20% tax on the distributed income (buyback price minus issue price) during share buybacks. Exempt for shareholders.

New Law (DTC 2025)Ch: XI

Sec 138

Provision Summary

Retained but structurally changed. The buyback proceeds are now treated as dividend income and taxed in the hands of the shareholder at slab rates, effectively nullifying the company-level 20% tax.

Key Changes & Highlights

Taxation moved from company to shareholder to align with dividend taxation rules.

Related Sections

Section 2(22)

Frequently Asked Questions

What does Section 115QA of the Income Tax Act 1961 deal with?

Section 115QA (Tax on distributed income to shareholders (Buyback Tax)) Domestic companies pay a flat 20% tax on the distributed income (buyback price minus issue price) during share buybacks. Exempt for shareholders.

What is the new section number for Section 115QA under the Direct Tax Code 2025?

Section 115QA of the ITA 1961 maps to Section 138 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.

What is the status of Section 115QA under the new tax code?

Section 115QA is marked as "Retained" with status "Modified". Impact: Critical - Completely alters the corporate strategy of returning cash via share buybacks vs dividends.

What are the key changes to Section 115QA under DTC 2025?

Taxation moved from company to shareholder to align with dividend taxation rules.

Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.

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