What this means
Section 32 of IT Act 1961 (depreciation on tangible and intangible assets at prescribed rates; additional depreciation of 20% for new plant/machinery in manufacturing) maps to Section 32 of IT Act 2025. Depreciation rates and additional depreciation are retained; goodwill excluded from depreciation from AY 2021-22. Verify on the income-tax portal before filing.
Change type — Rules substantively changed
This section has been substantively changed in the IT Act 2025. Rates, thresholds, or conditions may differ from the old provision. Verify the new section carefully before applying to Tax Year 2026-27 onwards.
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 32 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 32 go in the Income Tax Act 2025?▾
Section 32 of the IT Act 1961 maps to 32 in the IT Act 2025, effective 1 April 2026. Section 32 of IT Act 1961 (depreciation on tangible and intangible assets at prescribed rates; additional depreciation of 20% for new plant/machinery in manufacturing) maps to Section 32 of IT Act 2025. Depreciation rates and additional depreciation are retained; goodwill excluded from depreciation from AY 2021-22. Verify on the income-tax portal before filing.
Does Section 32 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 32. 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 32 in the IT Act 2025?▾
The new corresponding provision is 32 under the Income Tax Act 2025. Change type: Rules substantively changed. This section has been substantively changed in the IT Act 2025. Rates, thresholds, or conditions may differ from the old provision. Verify the new section carefully before applying to Tax Year 2026-27 onwards. Verify on the income-tax portal before filing.