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Deductions Under Income Tax Act 2025
Old deductions with new section numbers

The new Act reorganises deduction section numbers. For live filing, always check whether the return relates to old AY terminology or new Tax Year terminology.

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Last fact-checked: 2026-05-26
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Fact-check notes

Last fact-checked: 2026-05-26

Transition rule: AY 2026-27 covers FY 2025-26 and continues under the Income-tax Act, 1961. The Income-tax Act 2025 Tax Year terminology applies for income earned from 1 April 2026 onward.

This page is written from official portal guidance and the supplied Batch 11 brief. Any future-dated form, rule or portal workflow should be verified in the active utility before filing or advising a client.

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What this covers

The new Act reorganises deduction section numbers. For live filing, always check whether the return relates to old AY terminology or new Tax Year terminology.

  • Section 123 maps to the broad old 80C family.
  • Section 126 covers health insurance-style deduction.
  • Section 129 covers education-loan-style interest.
  • Section 134 covers rent without HRA.
Use cases

Who this is for

  • Taxpayer translating old deduction list.
  • Employer updating declaration forms.
  • CA preparing new Act client material.
  • Student learning old-to-new mapping.
Records

Documents and data to verify

  • Old section reference.
  • New Act section reference.
  • Applicable tax year.
  • Regime selected.
Care points

Common mistakes to avoid

  • Using new section numbers in AY 2026-27 ITR.
  • Assuming new regime allows all deductions.
  • Missing exceptions such as NPS employer contribution.
  • No source citation in client notes.
Action

How to proceed

  • Confirm the applicable year, taxpayer type, state, registration status and portal form before acting.
  • Reconcile the official portal data with books, bank statements, certificates, invoices and notices.
  • Prepare a written computation, filing note, document checklist or response with assumptions clearly stated.
  • Download acknowledgements, challans, workings and evidence after filing or submission.
Questions people ask

FAQs

Can WorkIndex help with this?

Yes. Post the facts and documents; relevant experts can quote for filing, advisory, reconciliation, registration, appeal support or ongoing compliance.

Is the page a substitute for professional advice?

No. Use it to prepare. A professional should check the current portal utility, official source and records before filing or taking a tax position.

What should I mention while posting?

Mention the year, state, form, deadline, amount involved, documents available, portal status and whether you need filing, correction, opinion or representation.

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