The Income-tax Act, 2025, brings changes that salaried taxpayers will encounter in payroll records, tax forms and their next ITR. From updated section references to revised reporting requirements, here’s what taxpayers should check and keep in mind.
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From 1 April 2026, the Income-tax Act, 2025, has come into effect. This means the new law will apply to the income-tax return (ITR) you file in 2027 for tax year 2026-27.
While income-tax rates remain unchanged, several section references, forms, and reporting requirements have changed. Salaried taxpayers need to understand these changes when checking their salary and tax records this year and filing their next ITR.
What section changes should salaried taxpayers know?
Isha Sekhri, Founder, Isha Sekhri & Associates LLP, has listed the key changes in section references from the Income-tax Act, 1961, to the Income-tax Act, 2025:
| Subject | Old section | New section | Key change |
| Salary: meaning, perquisites | 17(1), 17(2) | 16, 17 | Renumbered |
| Charging section for salary | 15 | 15 | No change |
| Profits in lieu of salary | 18 | 18 | No change |
| Deductions from salary | 16 | 19 | Standard deduction: ₹75,000 / ₹50,000 |
| Gratuity, leave encashment, commuted pension | 10 | 19(1) table | Deductions, not exclusions |
| HRA | 10(13A) | Schedule III | Rule 279 |
| LTA | 10(5) | Schedule III | — |
| Default regime | 115BAC | 202 | Renumbered |
| Rebate | 87A | 156 | ₹60,000 up to ₹12 lakh |
| 80C, 80D | 80C, 80D | 123, 126 | Section 123 not allowed in default regime |
| Additional NPS deduction | 80CCD(1B) | 124(3) | ₹50,000 |
| TDS: salary, other TDS, TCS | 192, 194-series, 206C | 392, 393, 394 | Renumbered |
| Capital gains | 111A, 112, 112A | 196, 197, 198 | Renumbered |
| Return of income | 139 | 263 | Renumbered |
What should salaried taxpayers check this year?
Sekhri has suggested that taxpayers should check the following points:
- Payroll TDS: Confirm the tax regime selected, with the default regime applying unless Form 122 is submitted. Check that old-regime items are not given under the default regime.
- HRA: Check the city classification and landlord details in Form 124. Keep the rent agreement and rent receipts on record.
- Declarations: Compare Form 124 with the documents submitted as proof. Check NPS, health insurance, and the ₹1.5 lakh deduction under Section 123.
- Tax credits: Reconcile Form 168 (the new Form 26AS) and AIS with your payslips. Also verify interest, dividend, and broker-provided capital-gains statements.
- Job changes: Ensure that salary and TDS from your previous employer have been correctly reported to your new employer.
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