Chapter XII of the Income-tax Act, 2025 runs from section 185 to section 189 and covers mode of payment in certain cases. Its 5 sections replace 4 sections of the Income-tax Act, 1961. This guide gives the complete section-by-section mapping between the two Acts.
What Chapter XII covers
Chapter XII carries the cash transaction restrictions — the 269 series that governs how loans, deposits and large payments may be taken, made and repaid.
Chapter XII contains 5 sections (sections 185 to 189). Between them they carry forward the substance of 4 sections of the Income-tax Act, 1961.
The Income-tax Act, 2025 received Presidential assent on 21 August 2025 and takes effect from 1 April 2026. The Income-tax Act, 1961 continues to govern every tax year up to 31 March 2026, and all assessments, appeals, penalties and prosecutions relating to those years are completed under the old Act by virtue of the repeal and savings provision in section 536. The mapping on this page is drawn from the section-wise concordance published with the Act, including the corrigenda notified in the Gazette on 3 September 2025.
What changed in Chapter XII
- Section 185 replaces section 269SS (mode of taking loans and deposits) and section 188 replaces section 269T (mode of repayment).
- Section 186 replaces section 269ST, the ₹2 lakh cash receipt restriction.
- Section 187 replaces section 269SU, the prescribed electronic payment modes requirement.
- The penalties now sit in Chapter XXI and refer to these new numbers: section 450 for a breach of section 185, section 451 for section 186, section 452 for section 187 and section 453 for section 188.
Chapter XII: complete section mapping (2025 → 1961)
Every section of Chapter XII is listed below with the section or sections of the Income-tax Act, 1961 that it corresponds to. Where a section is marked as read with a Schedule, the operative detail sits in that Schedule rather than in the section itself.
| New section (2025) | Provision | Corresponding 1961 section(s) |
|---|---|---|
| 185 | Mode of taking or accepting certain loans, deposits and specified sum | 269SS |
| 186 | Mode of undertaking transactions | 269ST |
| 187 | Acceptance of payment through prescribed electronic modes | 269SU |
| 188 | Mode of repayment of certain loans or deposits or specified advances | 269T |
| 189 | Interpretation | 269SS, 269ST, 269T |
How to use this mapping
- Working on a year up to 2025-26? Use the 1961 section in the right-hand column. The old Act governs those years under section 536.
- Working on tax year 2026-27 onwards? Use the new section number in the left-hand column, and read the section text rather than assuming the old provision was copied verbatim.
- Drafting a reply or an appeal? Cite the section that applies to the year in dispute, not the section in force when you are writing.
- Updating templates and software? Sections that merged — shown where one new section maps to several old ones — need the most attention, because a single new provision now carries what were separate conditions.
This page is a structural mapping guide, not tax advice. A corresponding section is not always an identical section — several provisions were merged, split or re-worded when they were carried over. Always read the actual text of the new section before relying on it, and check for later amendments, rules and CBDT notifications.