What this means
Section 17 of IT Act 1961 (definitions: salary §17(1), perquisite §17(2), profits in lieu of salary §17(3)) is split across Sections 16–19 of IT Act 2025. Section 17(1) 'salary' → §16; perquisite valuation → §17–18; profits in lieu of salary → §19. Verify on the income-tax portal before filing.
Change type — Section split into multiple codes
The original provision covered multiple scenarios. Under the IT Act 2025, these are separated into distinct codes or sections for clarity. Each code now has its own rate, threshold, and applicability rules. Refer to the specific code relevant to your payee type or transaction.
Effective date
This change takes effect from 1 April 2026 (Tax Year 2026-27 onwards). For income earned before 1 April 2026, the old Section 17 continues to apply under the transitional provisions of Section 536 of the IT Act 2025. Returns for FY 2025-26 (AY 2026-27) are filed under the IT Act 1961 — old section numbers apply.
Frequently asked questions
Where did Section 17 go in the Income Tax Act 2025?▾
Section 17 of the IT Act 1961 maps to 16 / 17 / 18 / 19 in the IT Act 2025, effective 1 April 2026. Section 17 of IT Act 1961 (definitions: salary §17(1), perquisite §17(2), profits in lieu of salary §17(3)) is split across Sections 16–19 of IT Act 2025. Section 17(1) 'salary' → §16; perquisite valuation → §17–18; profits in lieu of salary → §19. Verify on the income-tax portal before filing.
Does Section 17 still apply for FY 2025-26 (AY 2026-27)?▾
Yes. For income earned in FY 2025-26 (April 2025 to March 2026), the IT Act 1961 continues to apply — including Section 17. The IT Act 2025 (and its new section numbering) applies from Tax Year 2026-27 (income earned on or after 1 April 2026). Verify on the income-tax portal before filing.
What is the new section number for 17 in the IT Act 2025?▾
The new corresponding provision is 16 / 17 / 18 / 19 under the Income Tax Act 2025. Change type: Section split into multiple codes. The original provision covered multiple scenarios. Under the IT Act 2025, these are separated into distinct codes or sections for clarity. Each code now has its own rate, threshold, and applicability rules. Refer to the specific code relevant to your payee type or transaction. Verify on the income-tax portal before filing.