Clause 536 - Repeal and savings.

Repeal of Income tax Act with transitional savings preserving existing proceedings, credits, losses and tax attributes under corresponding rules.

Clause 536 repeals the Income tax Act, 1961 and prescribes savings and transitional rules: past operations, rights, liabilities, elections and pending proceedings for tax years beginning before 1 April 2026 continue and are to be carried out under the repealed Act; penalty and pending proceedings may be pursued as if repeal had not occurred; specified credits, brought forward losses, allowances, deductions and other tax attributes are to be carried forward, deemed or adjusted under corresponding provisions of the new Act; instruments made under the repealed Act remain effective if not inconsistent; recovery and certain search/requisition proceedings remain governed by the repealed Act; General Clauses Act section 6 applies.