Chapter IV of the Income-tax Act, 2025 runs from section 13 to section 95 and covers computation of total income. Its 83 sections replace 94 sections of the Income-tax Act, 1961. This guide gives the complete section-by-section mapping between the two Acts.
What Chapter IV covers
Chapter IV is the engine room of the Act — 83 sections covering all five heads of income. Salary, house property, business and profession, capital gains and other sources are all computed here, and this is where the largest number of 1961 sections were absorbed and renumbered.
Chapter IV contains 83 sections (sections 13 to 95). Between them they carry forward the substance of 94 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 IV
- Salary (sections 15–19). Section 19 now carries the deductions from salary together with the exclusions that used to sit in section 10(10) to 10(10C) and section 16 — gratuity, commuted pension, leave encashment, retrenchment compensation and voluntary retirement, all in one place.
- House property (sections 20–25). Section 21 merges old sections 23 and 27, so annual value and the deemed-owner rules are read together. Section 22 carries old sections 24 and 25.
- Business and profession (sections 26–66). The old section 36 deduction list is split across four sections — 29 (employee welfare), 30 (certain premium), 31 (bad debts) and 32 (other deductions) — so each is readable on its own.
- Presumptive taxation is unified. Section 58 replaces sections 44AD, 44ADA and 44AE together, and section 61 replaces the whole non-resident presumptive family: 44B, 44BB, 44BBA, 44BBB, 44BBC and 44BBD.
- Capital gains (sections 67–91). Numbering shifts by 22: section 45 becomes 67, section 48 becomes 72, section 54 becomes 82, section 54EC becomes 85 and section 54F becomes 86.
- Other sources (sections 92–95) map cleanly from sections 56 to 59.
Chapter IV: complete section mapping (2025 → 1961)
Every section of Chapter IV 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) |
|---|---|---|
| 13 | Heads of Income | 14 |
| 14 | Income not forming part of total income and expenditure in relation to such income | 14A |
| 15 | Salaries | 15 |
| 16 | Income from salary | 17 |
| 17 | Perquisite | 17 |
| 18 | Profits in lieu of salary | 17 |
| 19 | Deductions from salaries | 10(10), 10(10A), 10(10AA), 10(10B), 10(10C), 16 |
| 20 | Income from house property | 22 |
| 21 | Determination of annual value | 23, 27 |
| 22 | Deductions from income from house property | 24, 25 |
| 23 | Arrears of rent and unrealised rent received subsequently | 25A |
| 24 | Property owned by co-owners | 26 |
| 25 | Interpretation | 27 |
| 26 | Income under head “Profits and gains of business or profession" | 28 |
| 27 | Manner of computing profits and gains of business or profession | 29 |
| 28 | Rent, rates, taxes, repairs and insurance | 30, 31, 38 |
| 29 | Deductions related to employee welfare | 36, 40A |
| 30 | Deduction on certain premium | 36 |
| 31 | Deduction for bad debt and provision for bad and doubtful debt | 36 |
| 32 | Other deductions | 36 |
| 33 | Deduction for depreciation | 32, 38 |
| 34 | General conditions for allowable deductions | 37 |
| 35 | Amounts not deductible in certain circumstances | 40 |
| 36 | Expenses or payments not deductible in certain circumstances | 40A |
| 37 | Certain deductions allowed on actual payment basis only | 43B |
| 38 | Certain sums deemed as profits and gains of business or profession | 41 |
| 39 | Computation of actual cost | 43 |
| 40 | Special provision for computation of cost of acquisition of certain assets | 43C |
| 41 | Written down value of depreciable asset | 43 |
| 42 | Capitalising impact of foreign exchange fluctuation | 43A |
| 43 | Taxation of foreign exchange fluctuation | 43AA |
| 44 | Amortisation of certain preliminary expenses | 35D |
| 45 | Expenditure on scientific research (Read with Schedule XIII) | 35 |
| 46 | Capital expenditure of specified business | 35AD |
| 47 | Expenditure on agricultural extension project and skill development project | 35CCC, 35CCD |
| 48 | Tea development account, coffee development account and rubber development account (Read with Schedule IX) | 33AB |
| 49 | Site Restoration Fund (Read with Schedule X) | 33ABA |
| 50 | Special provision in case of trade, profession or similar association | 44A |
| 51 | Amortisation of expenditure for prospecting certain minerals (Read with Schedule XII) | 35E |
| 52 | Amortisation of expenditure for telecommunications services, amalgamation, demerger, scheme of voluntary retirement, etc | 35ABA, 35ABB, 35DD, 35DDA |
| 53 | Full value of consideration for transfer of assets other than capital assets in certain cases | 43CA |
| 54 | Business of prospecting for mineral oils | 42 |
| 55 | Insurance business (Read with Schedule XIV) | 44 |
| 56 | Special provision in case of interest income of specified financial institutions | 43D |
| 57 | Revenue recognition for construction and service contracts | 43CB |
| 58 | Special provision for computing profits and gains of business or profession on presumptive basis in case of certain residents | 44AD, 44ADA, 44AE |
| 59 | Computation of royalty and fee for technical services in hands of non-residents | 44DA |
| 60 | Deduction of head office expenditure in case of non- residents | 44C |
| 61 | Special provision for computation of income on presumptive basis in respect of certain business activities of certain non-residents | 44B, 44BB, 44BBA, 44BBB, 44BBC, 44BBD |
| 62 | Maintenance of books of account | 44AA |
| 63 | Tax Audit | 44AB |
| 64 | Special provision for computing deductions in case of business reorganisation of co-operative banks | 44DB |
| 65 | Interpretation for purposes of section 64 | 44DB |
| 66 | Interpretation | 28, 44DA |
| 67 | Capital gains | 45 |
| 68 | Capital gains on distribution of assets by companies in liquidation | 46 |
| 69 | Capital gains on purchase by company of its own shares or other specified securities | 46A |
| 70 | Transactions not regarded as transfer | 47 |
| 71 | Withdrawal of exemption in certain cases | 47A |
| 72 | Mode of computation of capital gains | 48 |
| 73 | Cost with reference to certain modes of acquisition | 49 |
| 74 | Special provision for computation of capital gains in case of depreciable assets | 50 |
| 75 | Special provision for cost of acquisition in case of depreciable asset | 50A |
| 76 | Special provision for computation of capital gains in case of Market Linked Debenture | 50AA |
| 77 | Special provision for computation of capital gains in case of slump sale | 50B |
| 78 | Special provision for full value of consideration in certain cases | 50C |
| 79 | Special provision for full value of consideration for transfer of share other than quoted share | 50CA |
| 80 | Fair market value deemed to be full value of consideration in certain cases | 50D |
| 81 | Advance money received | 51 |
| 82 | Profit on sale of property used for residence | 54 |
| 83 | Capital gains on transfer of land used for agricultural purposes not to be charged in certain cases | 54B |
| 84 | Capital gains on compulsory acquisition of lands and buildings not to be charged in certain cases | 54D |
| 85 | Capital gains not to be charged on investment in certain bonds | 54EC |
| 86 | Capital gains on transfer of certain capital assets not to be charged in case of investment in residential house | 54F |
| 87 | Exemption of capital gains on transfer of assets in cases of shifting of industrial undertaking from urban area | 54G |
| 88 | Exemption of capital gains on transfer of assets in cases of shifting of industrial undertaking from urban area to any Special Economic Zone | 54GA |
| 89 | Extension of time for acquiring new asset or depositing or investing amount of capital gains | 54H |
| 90 | Meaning of “adjusted”, “cost of improvement” and “cost of acquisition” | 55 |
| 91 | Reference to Valuation Officer | 55A |
| 92 | Income from other sources | 56 |
| 93 | Deductions | 57 |
| 94 | Amounts not deductible | 58 |
| 95 | Profits chargeable to tax | 59 |
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.
Related Guides
- Income-tax Act 2025: complete chapter and schedule structure
- Income-tax Act 1961 vs 2025 — master comparison
- Section mapping cheat sheet: 1961 to 2025
- Tax year under the Income-tax Act 2025
Key Facts About Income
- Applies in: All states across India, under the relevant central law.
- Mode: Mostly online via the official government portal.
- Typical timeline: Ranges from a few days to a few weeks depending on the case.
- Non-compliance: May attract penalties, interest or late fees.
- Expert help: TaxClue completes the entire process end to end for you.
Which sections make up Chapter IV of the Income-tax Act, 2025?
Chapter IV runs from section 13 to section 95 — 83 sections in all — and is headed “Computation of Total Income”.
How many 1961 sections does Chapter IV replace?
The sections in this chapter carry forward the substance of 94 sections of the Income-tax Act, 1961. Some new sections merge several old ones, which is why the counts differ.
Over 90% of compliance penalties in India arise from missed due dates — timely handling can save businesses thousands of rupees each year.
Income: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.