Income-tax Act 2025 (as amended by the Finance Act, 2026) including Tabular Mapping of Sections vis-à-vis the Income-tax Act, 1961

Based on the Income-tax Act, 2025 (as amended by the Finance Act, 2026), several provisions govern the administrative requirements for identification and compliance, specifically transitioning from the earlier 1961 framework.

The following sections and fees are relevant to Aadhaar and Permanent Account Number (PAN) requirements:

1. Fee for Default Relating to Aadhaar

The new Act includes a specific provision for fees associated with failures regarding Aadhaar notification:

• Section 430: This section mandates a fee for defaults relating to the intimation of an Aadhaar number.

• Comparison with 1961 Act: This provision is the parallel to Section 234H of the Income-tax Act, 1961.

2. Tax Deduction and Compliance (Exemptions)

Recent amendments have introduced relief for certain transactions that previously required extensive documentation like a Tax Deduction and Collection Account Number (TAN):

• Exemption from TAN: A significant change introduced by the Finance Act, 2026, provides an exemption from TAN for resident individuals purchasing immovable property from a non-resident.

3. Digital and Network Investments

The Act also outlines specific treatments for investments in digital infrastructure and payment protocols:

• Open Network for Digital Commerce (ONDC): Investment in equity shares, bonds, or debentures of ONDC Ltd is recognized for participating in network-based open protocol models for digital commerce and interoperable payments in India.

   

• Digital Payment Systems: Special recognition is given to entities engaged in retail payment systems or digital payment settlements approved by the Reserve Bank of India, particularly those with significant holding by the National Payments Corporation of India.

   

4. Transition and Mapping

For professional navigation between the old and new laws, the Act provides a direct mapping for administrative sections:

• Tax Year Definition: Section 3 of the 2025 Act now defines “tax year,” which was previously covered under Section 3 of the 1961 Act.

• Mode of Undertaking Transactions: Section 186 governs the mode of undertaking transactions, corresponding to Section 269ST of the 1961 Act.

• Electronic Payment Modes: Section 187 covers the acceptance of payment through prescribed electronic modes, mirroring Section 269SU of the 1961 Act.

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