Comparison of section 536 "Repeal and savings." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

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....cted are taxpayers (individuals, companies, cooperatives, amalgamated/successor entities) and revenue authorities. Effective dates referenced in the texts include commencement of the new Act and 1 April 2026 (and in one text a reference to 1 April 2025); specific effective timing is stated in the texts where present. Background & Scope Statutory hooks: repeal of the Income-tax Act, 1961 (43 of 1961) and application of transitional savings. Both texts are framed as a single clause titled "Repeal and savings" that seeks to preserve prior actions, proceedings and entitlements despite repeal. The documents enumerate specific categories: pending and future proceedings in respect of pre-1 April 2026 tax years; penalty proceedings; elections/opt....

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....merated repealed sections; and continuation of search/requisition proceedings begun u/ss 132/132A. The clause also invokes section 6 of the General Clauses Act, 1897 for the effect of repeal. Interpretation The text evidences legislative intent to achieve continuity and to minimise disruption caused by repeal: rights and liabilities are preserved, pending and certain future proceedings related to pre-cut-off tax years are to be governed by the repealed procedural rules, and substantive tax positions (losses, credits, deductions) are carried forward and recognised under corresponding provisions in the new Act. The clause uses deeming language ("shall be deemed to have been", "shall continue to apply", "shall be deemed to be") to effect tec....

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.... Act (listed in the table and in sub-clauses) and to corresponding provisions of the new Act (or specified fallback sections). It also invokes section 6 of the General Clauses Act, 1897 for guidance on effect of repeal. No other rules, notifications or circulars are expressly referenced beyond deeming prior notifications/circulars to continue where not inconsistent. Differences between the Document 1 "Section 536 of the Income-tax Act, 2025" and Document 2 "Clause 2 of the Income-tax Bill, 2025 - (Old version)" * Scope of continuing proceedings (Document 1, sub-section (2)(c) vs Document 2, sub-section (2)(c)): Document 1 expressly preserves application of the repealed Act to any proceeding pending on commencement and to any proceed....

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....n a date other than 1 April 2026; Document 2 fixes the calendar date 1 April 2026. The difference affects which searches/requisitions are governed by the repealed Act versus the new Act when commencement and 1 April 2026 diverge. * Reference to tax year 2025 vs corresponding previous year (Document 1 sub-section (3) vs Document 2 sub-section (3)): Document 1 includes an additional sub-section (3) stating that where this Act refers to any tax year commencing on 1 April 2025 or earlier, such reference shall be construed as reference to the corresponding previous year under the repealed Act. Document 2's sub-section (3) does not include this; instead it only applies section 6 of the General Clauses Act (as its third paragraph). * Pract....

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....nt 2 contains the same idea but refers to section 294B where there is no corresponding provision. * Practical impact: The alternate fallback section numbering (532 vs 294B) changes where residual schemes are placed in the new statute; this has practical consequences for the administrative basis under which such schemes will operate and for legal challenge-users must check which fallback is actually enacted to know which administrative head applies. Practical Implications * Compliance and risk areas: Taxpayers and advisors must identify which tax years are "before 1 April 2026" to determine whether the repealed Act's rules govern ongoing matters. Where Document 1 language is used, additional certainty exists for proceedings initiate....