Income Tax Section Number Changes: What HR & Employer Should Know

When I first heard about the Income Tax Act 2025 renumbering, I assumed it was mostly about the forms. Then I sat down with Form 130 and Form 138 and realised every single deduction line item now points to a different section number than the one I’d used for years. Section 80C, the one every employee asks about every January, isn’t 80C anymore.

This guide covers the sections HR and payroll teams reference most, with where each one actually shows up in your paperwork.

Complete Section Number Changes List

This is a representative list, not exhaustive – the Act renumbers far more sections than these seven. But these are the ones that show up most often in HR and payroll paperwork, so they’re where I’d focus first.

Income Tax Section Number That Are Changed

Section 168 (Formerly Sections 192 to 194T): TDS Provisions

This is the big one for payroll. The old Act spread TDS provisions across a wide range – Section 192 for salary, 192A for PF withdrawals, 194 for dividends, all the way through 194T – each covering a different category of payment. The Income Tax Act 2025 consolidates the core TDS framework under Section 168.

You’ll see this reference constantly if you’re processing payroll: it’s what Form 138 (formerly Form 24Q) is filed under, and it’s the section quoted on Form 130 when describing how salary TDS was calculated. If your payroll software or vendor contracts still reference “Section 192” in compliance documentation, that language needs updating to stay consistent with what actually appears on your TDS filings now.

In short: Section 168 consolidates the old Section 192-194T TDS framework, and it’s the section reference you’ll see on both Form 130 and Form 138.

Section 202 (Formerly Section 115BAC): The New Tax Regime

Section 115BAC was the provision that introduced the New Tax Regime, and it became a fixture of every salary structure conversation over the past few years – “opting in” or “opting out” of 115BAC was standard HR vocabulary. That provision is now Section 202.

This shows up directly in employee-facing paperwork. Form 130’s Part C Annexure-I literally asks “Whether opting out of taxation under section 202(1)?” – so if your offer letters, salary structure sheets, or tax regime declaration forms still reference 115BAC, employees filling out the new certificate will see a section number that doesn’t match what your HR documents told them.

Section 156 (Formerly Section 87A): Tax Rebate

Section 87A, the rebate provision that determines whether an individual owes any tax at all below a certain income threshold, is now Section 156. This is one employees ask about often, particularly around the New Tax Regime’s rebate limits, so it’s worth having your HR helpdesk or FAQ documentation updated with the new reference.

It also appears directly on both Form 130 and Form 138 – the rebate calculation line item is labelled “Rebate under section 156, if applicable” in both.

Section 262 (Formerly Sections 139A & 139AA): PAN Requirements

The two provisions governing PAN – Section 139A (obtaining and quoting PAN) and Section 139AA (linking PAN with Aadhaar) – have been consolidated into Section 262. This matters for onboarding paperwork and any compliance checklist that references PAN requirements for new employees or vendors.

Section 22 (Formerly Section 24) – Income from House Property

Section 24, which governed deductions on income from house property (including the interest deduction on home loans), is now Section 22. This is relevant less often in day-to-day payroll but does surface when employees claim house property loss as part of their tax declarations -Form 130’s computation explicitly includes a line for “any loss from house property reported by employee.”

Section 263 (Formerly Section 139) – Return of Income

Section 139, the long-standing provision governing income tax return filing, due dates, and belated or revised returns, is now Section 263. Not one HR teams file directly, but worth knowing if you’re advising employees on filing deadlines or referencing it in year-end tax communication.

Section 11 (Formerly Section 10) – Exempted Incomes

Section 10, the provision listing incomes exempt from tax – including HRA, LTA, and various allowances – is now Section 11. This is one of the most frequently referenced sections in salary structuring, since exemptions like HRA and LTA are core components of most CTC breakups. Form 130’s Part C directly lists exemptions under “Section 11” for travel concession, house rent allowance, and other special allowances.

How Runtime HRMS Handles This

I know this is too hard to remember, you don’t need to all keep this in mind because Runtime HRMS do this for you. At Runtime HRMS our templates, salary structure tools, and compliance documentation update automatically as these new section references take effect for Tax Year 2026-27 – so an employee’s offer letter, tax declaration form, and TDS certificate all reference the same section numbers, without your team having to cross-check each one by hand.

👉Book a Free Demo →

Also Read:

New Income Tax Act

7 Income Tax Forms Changed

New Labor Code

Check out the latest updates- visit: Home | Income Tax Department