Section 1 Income-tax Act 2025 Explained

Section 1 – Short Title, Extent and Commencement (Income-tax Act, 2025 vs 1961)

Short Answer: Section 1 of the Income-tax Act, 2025 corresponds to Section 1 of the Income-tax Act, 1961. The provisions remain identical except for the name of the Act and the date of commencement.

Income-tax Act, 2025 (Section 1)

(1) This Act may be called the Income-tax Act, 2025.
(2) It extends to the whole of India.
(3) Save as otherwise provided in this Act, it shall come into force on the 1st April, 2026.

Income-tax Act, 1961 (Section 1)

(1) This Act may be called the Income-tax Act, 1961.
(2) It extends to the whole of India.
(3) Save as otherwise provided in this Act, it shall come into force on the 1st day of April, 1962.

Key Differences

  • Name of the Act updated from 1961 to 2025
  • Commencement date updated from 1 April 1962 to 1 April 2026
  • No substantive change in legal provisions

Practical Impact

There is no practical impact on taxpayers or compliance. This section is purely formal and establishes the title, geographical applicability, and effective date of the Act.

Where is this used in real life?

This section is generally not referred to in day-to-day tax compliance. However, it is relevant in legal interpretation, referencing the applicability of the Act, and determining the effective date of provisions.

Exam / Interview Relevance

This section is commonly used in theoretical questions in CA, CS, and law exams to test understanding of the structure of the Act and its commencement.

Conclusion

Section 1 of both Acts is identical in structure and intent. The only changes reflect the updated Act name and commencement date under the new legislation.

Published by Simplified Tax India

Clear, section-wise comparison of the Income-tax Act, 2025 with the Income-tax Act, 1961.

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