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Applicability — Which Law Applies?

Comprehensive transition guide based on the official CBDT FAQs on Interplay and Transition between ITA 1961 and ITA 2025.

Key principle: ITA 2025 is effective from 1 April 2026 for TY 2025-26 (AY 2026-27) onwards. ITA 1961 continues to govern AY 2025-26 and earlier for substantive income computation, and all pending proceedings under prior years. Section 536 contains 22 sub-clauses addressing every transitional situation. Section 6 of the General Clauses Act, 1897 acts as a catch-all for unforeseen gaps.
56 scenariosacross 10 categories
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Source: CBDT FAQs on Interplay and Transition — Directorate of Income Tax (O&MS)
Disclaimer: This guide is based on the official CBDT FAQs on Interplay and Transition and does not constitute legal advice. It is based on ITA 2025 and ITA 1961 as on the date of publication. Subsequent amendments, notifications, or circulars may affect accuracy. Always verify the current legal position and consult a qualified tax professional before relying on this information.