The Income-tax Act, 2025 is in force: every home-owner section, old number to new
Since 1 April 2026 the 1961 Act is repealed for new income. Section 24(b) is now 22, 80C is 123, 54 is 82, the 1% property TDS is 393. The map, what each one still does, and which year is governed by which law.
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Rules as of 12 October 2026.
Most guides to home-loan tax benefits online still cite Section 24(b), 80C and 54. Those numbers belong to the Income-tax Act, 1961, which was repealed on 1 April 2026 and replaced by the Income-tax Act, 2025. The substance for home owners is largely unchanged; the numbering is not. If you are reading a bank's explainer, a lender's certificate or your own old notes, you need the map below.
Which year falls under which Act
The new Act introduces a "tax year": the twelve months from 1 April. Income earned from 1 April 2026 (tax year 2026-27) is governed by the 2025 Act. Income earned before that stays under the 1961 Act, so the return you file in July 2026 for the year ended 31 March 2026 still uses the old sections and forms, while the advance tax you pay during 2026-27 follows the new ones. Circulars and notifications issued under the old Act remain valid unless they conflict with the new one.
The map
| What it covers | 1961 Act | 2025 Act | What it still does |
|---|---|---|---|
| Income from house property | 22 | 20 | Charges rental value of property you own to tax under this head |
| Annual value | 23 | 21 | How rent (or nil, for up to two self-occupied homes) is computed |
| Deductions, including home-loan interest | 24 / 24(b) | 22 | 30% standard deduction on annual value, plus interest on borrowed capital; ₹2 lakh cap for self-occupied property in s.22(2) |
| Exemption on selling a house and buying another | 54 | 82 | Long-term gain on a residential house reinvested in one house in India (two, once, in some cases) within the windows |
| Exemption through specified bonds | 54EC | 85 | Gain on land or building invested in specified bonds within six months, ₹50 lakh cap |
| Exemption on selling any asset and buying a house | 54F | 86 | Gain on a non-residential asset reinvested in one residential house |
| Principal repayment and other savings | 80C | 123 | ₹1.5 lakh aggregate, old regime only |
| Extra interest deduction for certain first homes | 80EE / 80EEA | 130 / 131 | Legacy deductions for loans sanctioned in the eligible years, old regime only |
| Long-term capital gains rate | 112 | 197 | 12.5% without indexation; for land or a building bought before 23 July 2024, resident individuals and HUFs pay no more than 20% with indexation would have cost |
| New tax regime | 115BAC | 202 | Default regime: no self-occupied interest deduction, no 80C, house-property loss cannot be set off against other income |
| TDS when buying property from a resident | 194-IA | 393 | Buyer deducts 1% where price or stamp-duty value is ₹50 lakh or more; new Form 141 replaces 26QB |
| TDS when buying from a non-resident | 195 | 393 (non-resident provisions) | No threshold; rate tied to the seller's capital-gains tax; buyer needs a TAN |
| Certificate for lower or nil TDS | 197 | 395 | What an NRI seller applies for before the sale to avoid over-deduction |
Where the Income Tax Department has published the 2025 Act's section pages (sections 22, 82, 85, 86, 197 and 198 at the time of writing), the map above matches them. The remaining rows match the department's transition material and two independent practitioner mappings; where a number matters to a filing, confirm it against the enacted text.
What changed in substance, and what did not
- Home-loan interest, self-occupied. Section 22(2) keeps the ₹2 lakh cap and its conditions: the loan must be for acquiring or constructing the property, construction must finish within five years from the end of the tax year in which the money was borrowed, and you need the lender's interest certificate. Miss the conditions and the cap falls to ₹30,000. This deduction exists only in the old regime; under the new regime (section 202) it is not available at all.
- Home-loan interest, let-out. Still deductible without a ceiling against rent in both regimes. In the old regime a resulting loss can be set off against other income up to ₹2 lakh a year and carried forward; under the new regime it cannot leave the house-property head.
- Pre-construction interest. Section 22(1)(c) keeps the rule: interest for the years before the property was acquired or built is allowed in five equal instalments starting from the year of acquisition.
- Capital gains on a sale. The 2024 change survives: 12.5% long-term rate without indexation, with the 20%-with-indexation comparison preserved for property bought before 23 July 2024 by resident individuals and HUFs. Holding period for property to be long-term remains 24 months.
- TDS forms. The 1% buyer's deduction is unchanged in rate and threshold, but from tax year 2026-27 it is reported on Form 141 (replacing 26QB) and the certificate to the seller is Form 132 (replacing 16B).
Three places the old numbers will trip you up
Your lender's annual interest certificate may still print "Section 24(b)"; the deduction is the same, claim it under section 22. A sale deed drafted from a template may refer to "TDS under 194-IA"; the obligation is the same, deposit it under section 393 using Form 141. And any calculator or article that quotes 80EEA without saying "old regime only" is describing a deduction most new borrowers cannot claim.
What this means for you
If you are filing for the year that ended 31 March 2026, nothing changes: use the old section numbers. From this tax year onwards, claim home-loan interest under section 22 (₹2 lakh cap, old regime only), principal under section 123, and expect your builder or buyer to quote section 393 for the 1% TDS on a purchase of ₹50 lakh or more. If you are choosing between regimes, the house-property rules are usually the deciding factor: a self-occupied home with a large loan favours the old regime; no loan, or a let-out property with little loss, favours the new.
Sources
- Income Tax Department e-filing portal: objective and scope of the Income-tax Act, 2025 (commencement, tax year)primary
- Income-tax Act, 2025, section 22 (deductions from income from house property), Income Tax Departmentprimary
- Income-tax Act, 2025, section 82 (profit on sale of property used for residence), Income Tax Departmentprimary
- Income-tax Act, 2025, section 197 (tax on long-term capital gains), Income Tax Departmentprimary
- ClearTax: Income Tax Act 2025 section numbers, old vs newreport
- TaxGuru: TDS on immovable property purchases under the Income-tax Act, 2025report
