Salary Tax Sections: 1961 Act vs 2025 Act Made Simple

 

The following comparison table highlights the most important provisions generally used by salaried taxpayers.

Income-tax Act, 1961 Section	Subject	Income Tax Act, 2025 Corresponding Provision*
Section 10	Exemptions and Allowances	Reorganised Exemption Provisions
Section 10(13A)	House Rent Allowance (HRA)	HRA Exemption Chapter
Section 10(14)	Special Allowances	Employee Allowance Provisions
Section 10(5)	Leave Travel Concession (LTC)	Travel Benefit Exemption Provisions
Section 16	Standard Deduction & Salary Deductions	Salary Deduction Provisions
Section 17	Salary & Perquisites Definition	Salary Income Definitions
Section 24(b)	Home Loan Interest Deduction	House Property Deduction Provisions
Section 57	Deduction from Other Sources	Income Computation Provisions
Section 80C	Investment Deduction	Savings & Investment Deduction Provisions
Section 80CCC	Pension Fund Contribution	Retirement Deduction Provisions
Section 80CCD(1)	NPS Contribution	National Pension Deduction Provisions
Section 80CCD(1B)	Additional NPS Deduction	Additional Retirement Savings Deduction
Section 80CCD(2)	Employer NPS Contribution	Employer Contribution Deduction
Section 80D	Medical Insurance Premium	Health Insurance Deduction Provisions
Section 80DD	Dependent Disability Deduction	Disability-Related Tax Relief
Section 80DDB	Critical Disease Treatment	Medical Treatment Deductions
Section 80E	Education Loan Interest	Education Loan Benefits
Section 80EE	Housing Loan Interest	Housing Finance Relief
Section 80EEA	Affordable Housing Interest	Housing Incentive Provisions
Section 80G	Donations	Approved Donation Deduction
Section 80GG	Rent Paid Deduction	Rent Deduction Provisions
Section 80TTA	Savings Bank Interest	Interest Income Deduction
Section 80TTB	Senior Citizen Interest Deduction	Senior Citizen Tax Relief
Section 87A	Rebate on Tax Liability	Tax Rebate Chapter
Section 89	Relief on Salary Arrears	Relief Provisions through Form 39
Section 115BAC	New Tax Regime	Default Tax Regime Framework
Section 139	Filing of Income Tax Return	Return Filing Provisions
Section 143(1)	Processing of Return	Return Processing Chapter
Section 192	TDS on Salary	Salary TDS Provisions
Section 194A	TDS on Interest Income	Interest Income TDS
Section 206AA	Higher TDS for No PAN	PAN Compliance Provisions

Users should verify the latest officially notified Income Tax Act, 2025 section mapping for legal and professional purposes.

Most Important Sections for Salaried Taxpayers

Exemption Provisions

Firstly, exemption-related provisions continue to play a major role in salary taxation. Therefore, employees receiving HRA, LTC, and various allowances should understand their corresponding provisions under the new Act.

Salary Deduction Provisions

Secondly, salary deductions remain one of the most frequently used tax benefits. Accordingly, standard deduction benefits continue to help employees reduce taxable income.

Investment Deductions

Moreover, investments in PPF, ELSS, life insurance, tax-saving fixed deposits, Sukanya Samriddhi Yojana, and National Savings Certificates remain important tax-saving tools under applicable deduction provisions.

National Pension System Benefits

Furthermore, NPS continues to be a preferred retirement planning option. Therefore, employees should understand employer and employee contribution benefits under the revised framework.

Medical Insurance Deductions

In addition, health insurance deductions provide valuable tax relief. Consequently, employees paying premiums for themselves, spouses, children, or parents should review applicable deduction provisions carefully.

Tax Rebate and Relief

Likewise, rebate provisions and arrears relief mechanisms remain crucial. Therefore, taxpayers claiming relief through Form 39 (Earlier Form 10E) should verify corresponding sections under the new law.

How This Tally Table Helps During FY 2026-27

During FY 2026-27, taxpayers will frequently encounter both old and new section references. For example, previous salary records may refer to Section 80C, while updated software may display corresponding provisions under the Income Tax Act, 2025.

Similarly, employers preparing Form 130, tax consultants preparing advisory reports, and government offices processing employee tax records must maintain consistency between both Acts.

Therefore, a section comparison table ensures easier navigation, faster compliance, and better understanding of tax provisions.

Conclusion

By introducing the Income Tax Act, 2025, the government has modernised and simplified the country's direct tax legislation. However, during the transition period, salaried employees must understand the relationship between old and new provisions. Therefore, a 1961 vs 2025 Tally Table serves as an indispensable reference tool for FY 2026-27. Moreover, it helps employees identify deductions, exemptions, rebates, TDS provisions, and relief measures quickly and accurately. Consequently, taxpayers can file returns with greater confidence, reduce compliance errors, and stay updated with the evolving tax framework.