BILL No. 3 OF 2026
THE FINANCE BILL, 2026
(AS INTRODUCED IN LOK SABHA)
THE FINANCE BILL, 2026
_______
ARRANGEMENT OF CLAUSES
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CHAPTER I
PRELIMINARY
CLAUSES
1.
Short title and commencement.
CHAPTER II
RATES OF INCOME-TAX
2.
Income-tax under Act 43 of 1961.
3.
Income-tax under Act 30 of 2025.
CHAPTER III
DIRECT TAXES
A.––Income-tax under the Income-tax Act, 1961
4.
Amendment of section 92CA.
5.
Amendment of section 139.
6.
Amendment of section 140B.
7.
Amendment of section 144C.
8.
Insertion of new section 147A.
9.
Amendment of section 153.
10. Amendment of section 153B.
11. Amendment of section 220.
12. Insertion of new section 234-I .
13. Amendment of section 245MA.
14. Amendment of section 270A.
15. Amendment of section 270AA.
16. Amendment of section 274.
17. Amendment of section 275A.
18. Amendment of section 275B.
19. Amendment of section 276.
20. Substitution of new sections for sections 276B, 276BB, 276C, 276CC, 276CCC and
276D.
ii
CLAUSES
21. Amendment of section 277.
22. Amendment of section 277A.
23. Amendment of section 278.
24. Amendment of section 278A.
25. Amendment of section 280.
26. Insertion of new section 292BA.
B.––Income-tax under the Income-tax Act, 2025
27. Amendment of section 2.
28. Amendment of section 7.
29. Amendment of section 21.
30. Amendment of section 22.
31. Amendment of section 29.
32. Amendment of section 58.
33. Amendment of section 66.
34. Amendment of section 69.
35. Amendment of section 70.
36. Amendment of section 93.
37. Amendment of section 99.
38. Amendment of section 147.
39. Amendment of section 149.
40. Substitution of new section for section 150.
41. Amendment of section 162.
42. Amendment of section 164.
43. Amendment of section 165.
44. Amendment of section 166.
45. Amendment of section 169.
46. Amendment of section 195.
47. Amendment of section 202.
48. Amendment of section 203.
49. Amendment of section 204.
50. Amendment of section 206.
51. Substitution of new sections for sections 217 and 218.
52. Amendment of section 227.
53. Amendment of section 228.
54. Amendment of section 232.
55. Amendment of section 235.
56. Amendment of section 262.
57. Amendment of section 263.
58. Amendment of section 266.
59. Amendment of section 267.
iii
CLAUSES
60. Amendment of section 270.
61. Amendment of section 275.
62. Amendment of section 279.
63. Amendment of section 286.
64. Amendment of section 295.
65. Amendment of section 296.
66. Amendment of section 332.
67. Amendment of section 349.
68. Amendment of section 351.
69. Amendment of section 352.
70. Insertion of new section 354A.
71. Amendment of section 379.
72. Amendment of section 393.
73. Amendment of section 394.
74. Amendment of section 395.
75. Amendment of section 397.
76. Amendment of section 399.
77. Amendment of section 400.
78. Amendment of section 402.
79. Amendment of section 411.
80. Amendment of section 423.
81. Amendment of section 424.
82. Amendment of section 425.
83. Substitution of new sections for sections 427 and 428.
84. Amendment of section 439.
85. Amendment of section 440.
86. Omission of section 443.
87. Substitution of new section for section 446.
88. Omission of section 447.
89. Substitution of new section for section 454.
90. Amendment of section 466.
91. Amendment of section 470.
92. Amendment of section 471.
93. Amendment of section 473.
94. Amendment of section 474.
95. Amendment of section 475.
96. Amendment of section 476.
97. Amendment of section 477.
98. Amendment of section 478.
99. Amendment of section 479.
100. Substitution of new sections for sections 480 and 481.
101. Amendment of section 482.
iv
CLAUSES
102. Amendment of section 483.
103. Amendment of section 484.
104. Amendment of section 485.
105. Amendment of section 494.
106. Amendment of section 522.
107. Amendment of section 536.
108. Amendment of Schedule III.
109. Amendment of Schedule IV.
110. Amendment of Schedule VI.
111. Amendment of Schedule XI.
112. Amendment of Schedule XII.
113. Amendment of Schedule XIV.
CHAPTER IV
THE FOREIGN ASSETS OF SMALL TAXPAYERS DISCLOSURE SCHEME, 2026
114. Short title and commencement.
115. Definitions.
116. Declaration by declarant.
117. Amount payable by declarant.
118. Manner of making declaration.
119. Procedure relating to manner of payment.
120. Any income or asset declared not to be included in total income.
121. Any income or asset declared not to affect finality of completed assessments.
122. Amount paid in pursuance of declaration non-refundable.
123. Grant of immunity from penalty and prosecution.
124. Non-application of scheme.
125. Effect of declaration on pending assessment proceedings.
126. Power of Board to issue directions, etc.
127. Power to make rules.
128. Power to remove difficulties.
CHAPTER V
INDIRECT TAXES
Customs
129. Amendment of section 1.
130. Amendment of section 2.
131. Amendment of section 28.
v
CLAUSES
132. Amendment of section 28J.
133. Insertion of new section 56A.
134. Substitution of new section for section 67.
135. Amendment of section 84.
Customs Tariff
136. Amendment of First Schedule.
Central Goods and Service Tax
137. Amendment of section 15.
138. Amendment of section 34.
139. Amendment of section 54.
140. Amendment of section 101A.
Integrated Goods and Service Tax
141. Amendment of section 13.
CHAPTER VI
MISCELLANEOUS
PART I
AMENDMENT TO THE FINANCE ACT, 2001
142. Amendment of Seventh Schedule to Act 14 of 2001.
PART II
AMENDMENTS TO THE FINANCE (NO.2) ACT, 2004
143. Amendment of Act 23 of 2004.
PART III
AMENDMENT TO THE BLACK MONEY (UNDISCLOSED FOREIGN INCOME AND ASSETS) AND
IMPOSITION OF TAX ACT, 2015
144. Amendment of Act 22 of 2015.
THE FIRST SCHEDULE.
THE SECOND SCHEDULE.
THE THIRD SCHEDULE.
THE FOURTH SCHEDULE.
THE FIFTH SCHEDULE.
THE SIXTH SCHEDULE.
AS INTRODUCED IN LOK SABHA
ON 1ST FEBRUARY, 2026
BILL NO. 3 OF 2026
THE FINANCE BILL, 2026
A
BILL
to give effect to the financial proposals of the Central Government for the
financial year 2026-2027.
BE it enacted by Parliament in the Seventy-seventh Year of the Republic
of India as follows:––
CHAPTER I
PRELIMINARY
Short
title
and
commence-
ment.
1. (1) This Act may be called the Finance Act, 2026.
(2) Save as otherwise provided in this Act,––
(a) sections 2 to 113, clause (b) of section 136 and section 140 shall
come into force on the 1st day of April, 2026;
(b) clauses (c) and (d) of section 136 and section 142 shall come into
force on the 1st day of May, 2026;
(c) sections 137 to 139 shall come into force on such date as the
Central Government may, by notification in the Official Gazette, appoint.
2
CHAPTER II
RATES OF INCOME-TAX
Income-tax
under Act 43
of 1961.
2. (1) Subject to the provisions of sub-sections (2), (3), (4) and (5), for the
assessment year commencing on the 1st day of April, 2026, income-tax shall
be charged under the provisions of the Income-tax Act, 1961 (herein referred
to as the said Act) at the rates specified in Part I-A of the First Schedule and
such tax shall be increased by a surcharge, for the purposes of the Union,
calculated in each case in the manner provided therein.
(2) (a) Where an assessee as specified in column B of the Table below,
has, in the previous year, any net agricultural income exceeding five
thousand rupees, in addition to the total income, and the total income
exceeds the maximum amount not chargeable to income-tax as specified in
column C of the said Table, in respect of the said assessee, the net
agricultural income shall be taken into account, only for the purpose of
charging income-tax in respect of the total income.
