What this means
Section 35 of IT Act 1961 (deduction for in-house scientific research: 100% of capital/revenue expenditure; contribution to approved research associations: 100–150%) maps to Section 35 of IT Act 2025. The weighted deduction rates were reduced to 100% for most categories 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 35 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.
Confidence: medium. This mapping is inferred from structural analysis — verify against the official IT Act 2025 text on incometaxindia.gov.in before relying on it.
Frequently asked questions
Where did Section 35 go in the Income Tax Act 2025?▾
Section 35 of the IT Act 1961 maps to 35 in the IT Act 2025, effective 1 April 2026. Section 35 of IT Act 1961 (deduction for in-house scientific research: 100% of capital/revenue expenditure; contribution to approved research associations: 100–150%) maps to Section 35 of IT Act 2025. The weighted deduction rates were reduced to 100% for most categories from AY 2021-22. Verify on the income-tax portal before filing.
Does Section 35 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 35. 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 35 in the IT Act 2025?▾
The new corresponding provision is 35 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.