Depreciation is claimed under section 32 today. In the Income-tax Act, 2025 it is section 33 — one number higher, which is easy to remember and easy to get wrong.
Quick answer: the mapping
| Income-tax Act, 1961 | Subject | Income-tax Act, 2025 |
|---|---|---|
| 32 | Depreciation | 33 |
| 38 | Partly used assets | 33 |
| 43 | Actual cost and written down value | 39 and 41 |
| 43A | Foreign exchange fluctuation on capital assets | 42 |
| 43AA | Foreign exchange fluctuation — taxation | 43 |
| 43C | Cost of acquisition in certain cases | 40 |
| 35D | Preliminary expenses | 44 |
| 35 | Scientific research | 45 |
| 35AD | Capital expenditure of specified business | 46 |
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 the 1961 provision did
Section 32 of the Income-tax Act, 1961 allowed depreciation on the block of assets, including additional depreciation for manufacturing. Section 43 defined actual cost and written down value, and section 43A dealt with exchange fluctuation on imported capital assets.
Where it sits in the Income-tax Act, 2025
Section 33 of the Income-tax Act, 2025 is headed “Deduction for depreciation” and carries sections 32 and 38. Section 39 carries the computation of actual cost and section 41 the written down value, both drawn from section 43. Exchange fluctuation splits into section 42 (capitalising, old 43A) and section 43 (taxation, old 43AA).
What actually changed
- Actual cost and written down value get their own sections. What section 43 defined in one place is now sections 39 and 41, which makes each easier to cite.
- Section 38 is absorbed into section 33, so the restriction for assets not used wholly for business is read inside the depreciation section.
- Amortisation provisions cluster nearby: section 44 for preliminary expenses (old 35D), section 45 for scientific research (old 35, read with Schedule XIII), section 46 for specified business capital expenditure (old 35AD) and section 52 for telecom licences, amalgamation and VRS expenditure (old 35ABA, 35ABB, 35DD and 35DDA).
What to do about it
- Fixed asset registers and depreciation schedules should reference section 33 for tax year 2026-27 onwards.
- Written down value working papers should cite section 41, and actual cost adjustments section 39.
- Watch the numbering trap: section 32 of the new Act is “Other deductions” drawn from section 36, not depreciation.
The sections around it in the new Act
Renumbering is easier to absorb in context. The table below lists the neighbouring provisions of the Income-tax Act, 2025 with the 1961 sections each of them carries forward, so you can see where this provision sits and what moved with it.
| New section (2025) | Provision | Corresponding 1961 section(s) |
|---|---|---|
| 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 |
How to read a section mapping
- A corresponding section is not always an identical section. Where several 1961 sections map to one new section, conditions that used to sit apart are now read together.
- Where one 1961 section maps to several new sections, the old provision was split, and each new section carries only part of what you used to cite.
- Some new sections have no 1961 equivalent at all — the registered non-profit code in sections 332 to 355 is the largest example.
- Always cite by year. The Act that applies is decided by the tax year in question, not by the date you are writing on.
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.