Taxation Laws Revision Chart: Numbers, Sections and Traps

This final note brings the taxation series together for revision. It gathers the numbers examiners favour, maps the main income tax provisions from the 1961 Act to the 2025 Act, sets out the GST essentials and the recent amendments, and lists the traps that most often catch candidates. Each item points back to the topic where it is explained.

1. Numbers to Remember

Figure 1: Key figures across the series

2. Income Tax: Old and New Sections

Figure 2: Income-tax Act, 1961 to Income-tax Act, 2025

• Commencement. The Income-tax Act, 2025 received assent on 21 August 2025 and applies from 1 April 2026; income of earlier years remains under the 1961 Act (s.536; Topic 9)
• Tax year. A single tax year from 1 April to 31 March replaces the previous year and assessment year (s.3)
• Unchanged numbers. Definitions, charge, scope of total income and residence keep ss.2 to 6; most other provisions are renumbered.

3. GST Essentials

• Constitution. 101st Amendment, 2016: Articles 246A, 269A, 279A; GST from 1 July 2017; alcohol for human consumption outside GST; Council decides by three-fourths of weighted votes (Topic 26)
• Supply and levy. Supply under s.7 with Schedules I to III; CGST up to 20 per cent, IGST up to 40 per cent; reverse charge and composition (Topic 27)
• Place of supply. Inter-State if supplier's location and place of supply differ; intermediary services follow the recipient's location since the Finance Act, 2026 (Topic 28)
• Credit and demands. Section 16 conditions and s.17(5) blocks; s.74A for 2024-25 onwards; Tribunal operational from 2025 (Topics 29, 31 and 32)

4. Recent Changes

• Finance Act, 2025. Retrospective change of plant or machinery to plant and machinery in s.17(5)(d) of the CGST Act (Topic 29)
• GST 2.0. From 22 September 2025, rates of 5 and 18 per cent, with 40 per cent for demerit goods (Topic 26)
• Finance Act, 2026: income tax. Buyback consideration taxed as capital gains; penalty imposed in the assessment order and immunity widened; audit and statement penalties converted to fees; prosecution decriminalised with simple imprisonment up to two years; revised return window extended to twelve months; MAT reduced to 14 per cent (Topics 16, 20 and 25)
• Finance Act, 2026: GST. Intermediary rule in s.13(8)(b) of the IGST Act omitted; interim National Appellate Authority for advance rulings; changes on post-supply discounts and refunds (Topics 28 and 32)

5. Most Frequent Traps

• Article 265. A constitutional right, not a fundamental right; covers levy and collection (Topic 2)
• Exemptions. Strictly construed, with doubt going to the Revenue (Dilip Kumar, 2018), unlike charging provisions (Topic 7)
• Agricultural income. Exempt because Entry 82 of List I excludes it; it still raises the rate on other income (Topic 12)
• Losses. A business loss cannot be set off against salaries; a house property loss sets off against other heads only up to Rs 2 lakh (Topic 18)
• Reassessment. Based on information, with a show cause procedure; change of opinion is not enough (Topic 21)
• GST Council. Recommendations are not binding (Mohit Minerals, 2022) (Topic 26)

6. Frequently Asked Questions

Which income tax law applies to income earned in 2025-26?

The Income-tax Act, 1961, because s.536 of the 2025 Act saves the old Act for income relating to years before 1 April 2026.

What are the GST rates since 22 September 2025?

Mainly 5 and 18 per cent, with 40 per cent for a small set of demerit goods; the 12 and 28 per cent slabs were abolished.

7. Related Topics

• Topic 1: Concept, Canons and Constitutional Scheme. Where the series begins.
• Topic 9: Income-tax Act, 2025. Scheme and transition.
• Topic 34: Leading Cases on Taxation. All the cases together.