New Income Tax Act 2025 Replaced Sections 80C, 80D, 80E and 80G With Other Section

New Income Tax Act 2025: The Government of India has prepared the new Income Tax Act 2025 to simplify the tax system in the country. The purpose of this law is not to abolish old rules, but to systematically integrate them into a new framework. Many provisions scattered across the tax law have now been incorporated into a better structure with new section numbers.

The implementation and presentation of this entire process in the budget is being handled by the Ministry of Finance, India.

The new section numbers may initially confuse taxpayers, but the actual benefits and exemptions will remain the same.

Why was the old tax-saving section changed?

The old tax law made it difficult for ordinary taxpayers to understand the various deductions and exemptions. Many sections performed similar functions but were grouped under different numbers. These have been grouped logically in the new Act to make the tax law easier to read and understand. The government’s goal is to simplify tax filing and improve compliance.

Where will the Tax exemptions related to Section 80C now be available?

Previously, investment-based tax savings such as life insurance premiums, PPF, EPF, ELSS, Sukanya Samriddhi Yojana, home loan principal, and children’s tuition fees, up to ₹1.5 lakh, were available under Section 80C.

The new Act includes these provisions in Section 123 (Schedule XV). This means that the tax-saving benefits have not been eliminated; only the section number has changed.

New Section Arrangement for NPS, Health Insurance, and Education Loans

The new Act organises different tax-saving options into separate sections.

NPS-related deductions are now included in Section 124, which were previously in separate sections of Section 80CCD.

Tax exemption on health insurance premiums will now be available under Section 126, which was previously available under Section 80D.

Tax exemption on education loan interest will now be available under Section 129, which was previously available under Section 80E.

New Section Arrangements for Home Loans, Electric Vehicles, and Donations

Additional exemption on home loan interest will now be available under Sections 130 and 131, which were previously available under Sections 80EE and 80EEA.

Tax exemption on purchase of electric vehicles will now be available under Section 132, which was previously available under Section 80EEB.

Tax exemption on donations will now be available under Section 133, which was previously available under Section 80G.

Salary, Tax Rebate, and Changes in the New Tax Regime

Standard deductions and other exemptions related to salaries have now been included in Section 19.

The new tax regime, formerly known as 115BAC, will now be known as Section 202.

Tax rebates previously available under Section 87A will now be available under Section 156.

Sections related to capital gains tax have also changed

The exemption on gains from property sale will now be available under Section 82, which was previously under Section 54.

Long-term capital gains tax will now be covered under Section 198, which was previously under Section 112A.

Short-term capital gains tax will now be covered under Section 196, which was previously under Section 111A.

What this means for taxpayers 

This change does not directly mean that tax-saving options have ended. The rules remain the same, only their numbering has changed. The new sections may seem a little difficult to understand initially, but once you understand the relationship between the old and new sections, the budget announcements will become easier to understand.