New tax utility explained: How to use the Income Tax Act 2025 parallel reading tool to map old vs new sections

If you have been following the news, you know the old tax law we have used for 60 years is finally being retired. Starting April 1, 2026, the new Income Tax Act, 2025 officially takes over.

To help everyone get ready, the income tax department launched a new tool on its e-filing website.

Since the new law changes all the section numbers and names, this tool lets you look at the old rules and the new ones side-by-side on your screen.

What is parallel reading functionality

To support a smooth transition from the Income Tax Act, 1961 to the Income Tax Act, 2025, which will come into effect from 1 April 2026, the tax department has introduced a dedicated parallel reading functionality.

This feature allows users to view the earlier and revised provisions side by side, making it easier to track changes in structure, section numbering, and content.

How does the parallel reading tool work?

• You pick a section from the old law (the 1961 Act) using a dropdown menu.

• The system automatically shows you where that same rule is in the new 2025 Act.

• You can read both versions at the same time to see exactly what changed.

• Map old provisions to the corresponding new provisions.

• Compare provisions of the Income-tax Act, 1961 and Income-tax Act, 2025 side-by-side.

Step-by-step guide to use the comparison utility

You don’t even need to log in to your account to use the basic version of this tool. It is available directly on the official tax website.

• Go to incometax.gov.in.

• Go to utility to check provisions of income tax act 1961 vis a vis income tax act 2025. This is under all acts, then Income Tax act 2025

• Choose the Income-tax Act, 1961 from the dropdown menu.

• Select the specific section number you are familiar with (e.g., Section 80C for deductions).

• You will see an option for "Parallel Reading Utility."

• The system automatically shows the relevant Section of the Income-tax Act, 2025 after the selection is made.

Users can access both Acts' whole texts directly from the same platform.

What happens to old cases?

If you’re currently in the middle of a tax appeal or an audit from a few years ago, don't panic. The department confirmed that any "old" business stays under the old rules. Even after the new law takes effect in 2026, your pending cases will be handled under the 1961 Act until they are fully resolved. You won't have to switch mid-way.

Why the change?

By giving us this tool now, the tax department is basically making the transition smoother.