The Finance Bill 2026

Read or download the official PDF of this gazette notification issued by the Lok Sabha Secretariat on 1st February 2026. Classified under Extra Ordinary.

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LOK SABHA ___________ The following Bill was introduced in Lok Sabha on 1st February, 2026:— BBILILLL NNoO.. 33 OOFF 2 2002266 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 1.(1) This Act may be called the Finance Act, 2026. and commence-

(2)Save as otherwise provided in this Act,–– ment.

(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 2 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—

CHAPTER II RATES OF INCOME-TAX Income-tax 2. (1) Subject to the provisions of sub-sections (2), (3), (4) and (5), for the under Act 43 assessment year commencing on the 1st day of April, 2026, income-tax shall of 1961. 43 of 1961.

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.

TABLE Sl. Assessee Maximum No. amount not chargeable to income-tax A B C

1. (i) Every individual other than the individual Rs. 2,50,000. referred to in Sl. No. 2 or 3; or

(ii) Hindu undivided family; or

(iii) association of persons or body of individuals, whether incorporated or not; or

(iv) every artificial juridical person referred to in

section 2(31)(vii) of the said Act, not being an assessee to which Paragraph B, C, D or E of Part I-A of the First Schedule applies or to whom Sl. No. 4 applies.

2. Every individual, being a resident in India, who is Rs. 3,00,000. of the age of sixty or more but less than eighty years at any time during the previous year.

3. Every individual, being a resident in India, who is Rs. 5,00,000. of the age of eighty years or more at any time during the previous year.2 3 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 3

CHAPTER II 4. Assessee whose income is chargeable to tax under Rs. 4,00,000.

RATES OF INCOME-TAX section 115BAC(1A) of the said Act.

Income-tax 2. (1) Subject to the provisions of sub-sections (2), (3), (4) and (5), for the under Act 43 assessment year commencing on the 1st day of April, 2026, income-tax shall (b) For the purposes of clause (a), the income-tax chargeable shall be of 1961. 43 of 1961.

be charged under the provisions of the Income-tax Act, 1961 (herein referred computed as per the following formula:— 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, Z = X – Y o o o calculated in each case in the manner provided therein.

where,––

(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 Z = the income-tax chargeable for the purposes of clause (a);

o thousand rupees, in addition to the total income, and the total income exceeds the maximum amount not chargeable to income-tax as specified in X = the amount of income-tax determined in respect of the Aggregate o column C of the said Table, in respect of the said assessee, the net Income (AI ) at the rates specified in Paragraph A of Part I-A of the First o agricultural income shall be taken into account, only for the purpose of Schedule or sub-section (1A) of section 115BAC of the said Act, as if such charging income-tax in respect of the total income. AI were the total income; and o TABLE Y = the amount of income-tax determined in respect of the net agricultural o Sl. Assessee Maximum income increased by a sum as specified in column C of the Table mentioned No. amount not in clause (a) at the rates specified in the said Paragraph A or sub-section chargeable to (1A) of section 115BAC of the said Act, as if the net agricultural income as income-tax so increased were the total income;

A B C

1. (i) Every individual other than the individual Rs. 2,50,000. Aggregate Income (AI ) = Total income + Net agricultural income. o referred to in Sl. No. 2 or 3; or

(3) In cases to which the provisions of Chapter XII or Chapter XII-A or

(ii) Hindu undivided family; or section 115JB or section 115JC or Chapter XII-FA or Chapter XII-FB or sub-

section (1A) of section 161 or section 164 or section 164A or section 167B of

(iii) association of persons or body of individuals, the said Act apply, the tax chargeable shall be determined— whether incorporated or not; or

(i) as provided in that Chapter or that section; and

(iv) every artificial juridical person referred to in

section 2(31)(vii) of the said Act, (ii) with reference to the rates imposed by sub-section (1) or the rates as specified in that Chapter or section, as the case may be. not being an assessee to which Paragraph B, C, D or E of Part I-A of the First Schedule applies or to (4) For the purposes of sub-section (3),— whom Sl. No. 4 applies.

(a) the amount of income-tax computed in accordance with the

2. Every individual, being a resident in India, who is Rs. 3,00,000. provisions of section 111A or section 112 or section 112A of the said Act of the age of sixty or more but less than eighty shall be increased by a surcharge, for the purposes of the Union, as provided years at any time during the previous year. in Paragraph F of Part I-A of the First Schedule, except in case of—

3. Every individual, being a resident in India, who is Rs. 5,00,000. (i) a domestic company whose income is chargeable to tax under of the age of eighty years or more at any time section 115BAA or section 115BAB of the said Act;

during the previous year.4 4 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—

(ii) an individual or Hindu undivided family or association of persons, or body of individuals, whether incorporated or not, or an artificial juridical person referred to in sub-clause (vii) of clause (31) of

section 2 of the said Act whose income is chargeable to tax under sub-

section (1A) of section 115BAC of the said Act; or

(iii) a co-operative society resident in India, whose income is chargeable to tax under section 115BAD or section 115BAE of the said Act;

(b) in respect of income chargeable to tax under the section as specified in column B of the Table below, in the case of a person as specified in column C of the said Table, the amount of income-tax computed shall be increased by a surcharge, for the purposes of the Union, calculated at the rate or rates as specified in column D of the said Table, of such income-tax.

TABLE Sl. No. Section Person Rate of surcharge A B C D

1. 115A, (i) Every (i) Where the total income 115AB, individual; or exceeds Rs. 50,00,000 but 115AC, does not exceed Rs.

115ACA, (ii) Hindu 1,00,00,000, at the rate of 115AD, undivided family; ten per cent.;

115B, or 115BA, (ii) where the total income 115BB, (iii) association of exceeds Rs. 1,00,00,000 115BBA, persons, except in a but does not exceed Rs.

115BBC, case of an 2,00,00,000, at the rate of 115BBF, association of fifteen per cent.;

115BBG, persons consisting 115BBH, of only companies (iii) where the total 115BBI, as its members, income exceeds Rs.

115BBJ, whether 2,00,00,000 but does not 115E, 115JB incorporated or not; exceed Rs. 5,00,00,000, at or 115JC. or the rate of twenty-five per cent.;

(iv) body of individuals, (iv) where the total whether income exceeds Rs. incorporated or not; 5,00,00,000, at the rate of or thirty-seven per cent.

(v) every artificial juridical person4 5 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 5

(ii) an individual or Hindu undivided family or association of referred to in persons, or body of individuals, whether incorporated or not, or an section 2(31)(vii) of artificial juridical person referred to in sub-clause (vii) of clause (31) of the said Act,

section 2 of the said Act whose income is chargeable to tax under sub-

section (1A) of section 115BAC of the said Act; or not having any income under

(iii) a co-operative society resident in India, whose income is section 115AD of chargeable to tax under section 115BAD or section 115BAE of the said the said Act and not Act; having any income chargeable to tax

(b) in respect of income chargeable to tax under the section as specified under section in column B of the Table below, in the case of a person as specified in 115BAC(1A) of the column C of the said Table, the amount of income-tax computed shall be said Act.

increased by a surcharge, for the purposes of the Union, calculated at the rate or rates as specified in column D of the said Table, of such income-tax. 2. 115A, (i) Every (i) Where the total income 115AB, individual; or exceeds Rs. 50,00,000 but 115AC, does not exceed Rs.

TABLE 115ACA, (ii) association of 1,00,00,000, at the rate of Sl. No. Section Person Rate of surcharge 115AD, persons, except in a ten per cent.;

115B, case of an A B C D 115BA, association of (ii) Where the total

1. 115A, (i) Every (i) Where the total income 115BB, persons consisting income exceeds Rs.

115AB, individual; or exceeds Rs. 50,00,000 but 115BBA, of only companies 1,00,00,000 but does not 115AC, does not exceed Rs.

115BBC, as its members, exceed Rs. 2,00,00,000, at 115ACA, (ii) Hindu 1,00,00,000, at the rate of 115BBF, whether the rate of fifteen per 115AD, undivided family; ten per cent.;

115BBG, incorporated or not; cent.;

115B, or 115BBH, or 115BA, (ii) where the total income 115BBI, (iii) where the total 115BB, (iii) association of exceeds Rs. 1,00,00,000 115BBJ, (iii) body of income [excluding 115BBA, persons, except in a but does not exceed Rs.

115E, 115JB individuals, dividend income or short- 115BBC, case of an 2,00,00,000, at the rate of or 115JC. whether term or long-term capital 115BBF, association of fifteen per cent.; incorporated or not; gains as referred to in 115BBG, persons consisting or section 115AD(1)(b) of 115BBH, of only companies (iii) where the total the said Act] exceeds Rs.

115BBI, as its members, income exceeds Rs.

(iv) every artificial 2,00,00,000 but does not 115BBJ, whether 2,00,00,000 but does not juridical person exceed Rs. 5,00,00,000, at 115E, 115JB incorporated or not; exceed Rs. 5,00,00,000, at referred to in the rate of twenty-five per or 115JC. or the rate of twenty-five per

section 2(31)(vii) of cent.; cent.; the said Act,

(iv) body of

(iv) where the total individuals, (iv) where the total having any income income [excluding whether income exceeds Rs. under section dividend income or short- incorporated or not; 5,00,00,000, at the rate of 115AD of the said term or long-term capital or thirty-seven per cent.

Act, and not having gains as referred to in any income section 115AD(1)(b) of

(v) every artificial chargeable to tax the said Act] exceeds Rs. juridical person6 6 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— under section 5,00,00,000, at the rate of 115BAC(1A) of the thirty-seven per cent.;

said Act.

(v) where the total income [including dividend income or short-term or long-term capital gains as referred to in section 115AD(1)(b) of the said Act] exceeds Rs.

2,00,00,000, but is not covered in clauses (iii) and (iv), at the rate of fifteen per cent.;

(vi) where the total income includes any dividend income or short- term or long-term capital gains as referred to in

section 115AD(1)(b) of the said Act, the rate of surcharge on the income- tax calculated on that part of income shall not exceed fifteen per cent. and the provisions of clause (i) or (ii), as the case may be, shall apply accordingly.

3. 115A, Association of (i) Where the total income 115AB, persons consisting exceeds Rs. 50,00,000 but 115AC, of only companies does not exceed Rs.

115ACA, as its members. 1,00,00,000, at the rate of 115AD, ten per cent.;

115B, 115BA, (ii) where the total income 115BB, exceeds Rs. 1,00,00,000, 115BBA, at the rate of fifteen per 115BBC, cent.

115BBF, 115BBG, 115BBH, 115BBI, 115BBJ,6 7 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 7 under section 5,00,00,000, at the rate of 115E, 115JB 115BAC(1A) of the thirty-seven per cent.; or 115JC. said Act.

(v) where the total income 4. 115A, Every co-operative (i) Where the total income [including dividend 115AB, society except such exceeds Rs. 1,00,00,000 income or short-term or 115AC, co-operative society but does not exceed long-term capital gains as 115ACA, whose income is Rs.10,00,00,000, at the referred to in section 115AD, chargeable to tax rate of seven per cent.;

115AD(1)(b) of the said 115B, under section Act] exceeds Rs. 115BA, 115BAD or (ii) where the total income 2,00,00,000, but is not 115BB, 115BAE of the said exceeds Rs. 10,00,00,000, covered in clauses (iii) 115BBA, Act. at the rate of twelve per and (iv), at the rate of 115BBC, cent.

fifteen per cent.; 115BBF, 115BBG,

(vi) where the total 115BBH, income includes any 115BBI, dividend income or short- 115BBJ, term or long-term capital 115E, 115JB gains as referred to in or 115JC.

section 115AD(1)(b) of the said Act, the rate of 5. 115A, Every firm or local Where the total income surcharge on the income- 115AB, authority. exceeds Rs. 1,00,00,000, tax calculated on that part 115AC, at the rate of twelve per of income shall not 115ACA, cent.

exceed fifteen per cent. 115AD, and the provisions of 115B, clause (i) or (ii), as the 115BA, case may be, shall apply 115BB, accordingly. 115BBA, 115BBC,

3. 115A, Association of (i) Where the total income 115BBF, 115AB, persons consisting exceeds Rs. 50,00,000 but 115BBG, 115AC, of only companies does not exceed Rs. 115BBH, 115ACA, as its members. 1,00,00,000, at the rate of 115BBI, 115AD, ten per cent.; 115BBJ, 115B, 115E, 115JB 115BA, (ii) where the total income or 115JC.

115BB, exceeds Rs. 1,00,00,000, 115BBA, at the rate of fifteen per 6. 115A, Every domestic (i) Where the total income 115BBC, cent. 115AB, company except exceeds Rs. 1,00,00,000 115BBF, 115AC, such domestic but does not exceed Rs.

115BBG, 115ACA, company whose 10,00,00,000, at the rate 115BBH, 115AD, income is of seven per cent.;

115BBI, 115B, chargeable to tax 115BBJ, 115BA, under section8 8 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— 115BB, 115BAA or (ii) where the total income 115BBA, 115BAB of the said exceeds Rs. 10,00,00,000, 115BBC, Act. at the rate of twelve per 115BBF, cent.

115BBG, 115BBH, 115BBI, 115BBJ, 115E, 115JB or 115JC.

7. 115A, Every company, (i) Where the total income 115AB, other than a exceeds Rs. 1,00,00,000 115AC, domestic company. but does not exceed Rs.

115ACA, 10,00,00,000, at the rate 115AD, of two per cent.;

115B, 115BA, (ii) where the total income 115BB, exceeds Rs. 10,00,00,000, 115BBA, at the rate of five per cent.

115BBC, 115BBF, 115BBG, 115BBH, 115BBI, 115BBJ, 115E, 115JB or 115JC.

8. 115BBE Any assessee. Twenty-five per cent.

(1)(i).

9. 115BAA or Every domestic Ten per cent.

115BAB. company.

10. 115BAC (i) Every (i) Where the total income

(1A). individual; or (including dividend income or capital gains

(ii) Hindu under the provisions of undivided family; sections 111A, 112 and or 112A of the said Act) exceeds Rs. 50,00,000 but

(iii) association of does not exceed Rs. persons, except in a 1,00,00,000, at the rate of case of an ten per cent.; association of8 9 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 9 115BB, 115BAA or (ii) where the total income persons consisting (ii) where the total income 115BBA, 115BAB of the said exceeds Rs. 10,00,00,000, of only companies (including dividend 115BBC, Act. at the rate of twelve per as its members, income or capital gains 115BBF, cent. whether under the provisions of 115BBG, incorporated or not; sections 111A, 112 and 115BBH, or 112A of the said Act) 115BBI, exceeds Rs. 1,00,00,000 115BBJ, (iv) body of but does not exceed Rs.

115E, 115JB individuals, 2,00,00,000, at the rate of or 115JC. whether fifteen per cent.; incorporated or not;

7. 115A, Every company, (i) Where the total income or (iii) where the total 115AB, other than a exceeds Rs. 1,00,00,000 income (excluding 115AC, domestic company. but does not exceed Rs. (v) every artificial dividend income or 115ACA, 10,00,00,000, at the rate juridical person capital gains under the 115AD, of two per cent.; referred to in provisions of sections 115B, section 2(31)(vii) of 111A, 112 and 112A of 115BA, (ii) where the total income the said Act. the said Act) exceeds Rs.

115BB, exceeds Rs. 10,00,00,000, 2,00,00,000, at the rate of 115BBA, at the rate of five per cent. twenty-five per cent.;

115BBC, 115BBF, (iv) where the total 115BBG, income (including 115BBH, dividend income or 115BBI, capital gains under the 115BBJ, provisions of sections 115E, 115JB 111A, 112 and 112A of or 115JC. the said Act) exceeds Rs.

2,00,00,000, but is not

8. 115BBE Any assessee. Twenty-five per cent. covered in clause (iii) at

(1)(i). the rate of fifteen per cent.;

9. 115BAA or Every domestic Ten per cent.

115BAB. company. (v) where the total income includes any dividend

10. 115BAC (i) Every (i) Where the total income income or capital gains

(1A). individual; or (including dividend under the provisions of income or capital gains sections 111A, 112 and

(ii) Hindu under the provisions of 112A of the said Act, the undivided family; sections 111A, 112 and rate of surcharge on the or 112A of the said Act) income-tax in respect of exceeds Rs. 50,00,000 but that part of income shall

(iii) association of does not exceed Rs. not exceed fifteen per persons, except in a 1,00,00,000, at the rate of cent. and the provisions of case of an ten per cent.; clause (i) or (ii), as the association of10 10 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— case may be, shall apply accordingly.

11. 115BAC Association of (i) Where the total income

(1A). persons consisting exceeds Rs. 50,00,000 but of only companies does not exceed Rs. as its members. 1,00,00,000, at the rate of ten per cent.;

(ii) where the total income exceeds Rs. 1,00,00,000, at the rate of fifteen per cent.

12. 115BAD or Every co-operative Ten per cent.

115BAE. society resident in India.

13. 115AD(1) Specified fund, No surcharge on income-

(a) referred to in clause tax computed on that part

Explanation to section 115AD(1)(a) of

section 10(4D) of the said Act. the said Act, whose income includes any income under

section 115AD(1)(a) of the said Act.

(5) For the purposes of sub-section (4), in respect of the persons mentioned in column B of the Table below, having total income chargeable to tax under sub-section (1A) of section 115BAC or section 115JB or section 115JC of the said Act, as the case may be, and such income exceeds the amount as specified in column C of the said Table but does not exceed the amount specified in column D thereof, the total amount payable as income- tax and surcharge thereon shall not exceed the amount determined as per the

following formula:— T o = R o + S o where,–– T = the total amount beyond which the total amount payable as income- o tax and surcharge thereon shall not exceed;10 11 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 11 case may be, shall apply R = the total amount payable as income-tax and surcharge, if applicable, o accordingly. on an amount as specified in column C of the Table below; and

11. 115BAC Association of (i) Where the total income S = the total income – amount as specified in column C of the said Table. o

(1A). persons consisting exceeds Rs. 50,00,000 but of only companies does not exceed Rs. as its members. 1,00,00,000, at the rate of TABLE ten per cent.;

Sl. Person specified Amount Amount No. in Table below

(ii) where the total income clause (b) of sub- exceeds Rs. 1,00,00,000,

section (4) at the rate of fifteen per A B C D cent.

1. Persons specified Rs. 50,00,000. Rs. 1,00,00,000. against Sl. Nos. 1

12. 115BAD or Every co-operative Ten per cent. and 2 in column Rs. 1,00,00,000. Rs. 2,00,00,000.

115BAE. society resident in C.

India.

Rs. 2,00,00,000. Rs. 5,00,00,000.

13. 115AD(1) Specified fund, No surcharge on income- Rs. 5,00,00,000. -

(a) referred to in clause tax computed on that part

2. Person specified Rs. 50,00,000. Rs. 1,00,00,000.

Explanation to section 115AD(1)(a) of Rs. 1,00,00,000. - in column C.

section 10(4D) of the said Act. the said Act, whose 3. Person specified Rs. 1,00,00,000. Rs. 10,00,00,000. income includes against Sl. No. 4 Rs. 10,00,00,000. - any income under in column C.

section

4. Person specified Rs. 1,00,00,000. - 115AD(1)(a) of the against Sl. No. 5 said Act. in column C.

(5) For the purposes of sub-section (4), in respect of the persons

5. Persons specified Rs. 1,00,00,000. Rs. 10,00,00,000. mentioned in column B of the Table below, having total income chargeable against Sl. Nos. 6 to tax under sub-section (1A) of section 115BAC or section 115JB or section Rs. 10,00,00,000. - and 7 in column 115JC of the said Act, as the case may be, and such income exceeds the C.

amount as specified in column C of the said Table but does not exceed the amount specified in column D thereof, the total amount payable as income-

6. Persons specified Rs. 50,00,000. Rs. 1,00,00,000. tax and surcharge thereon shall not exceed the amount determined as per the against Sl. Nos.

following formula:— Rs. 1,00,00,000. Rs. 2,00,00,000.

10 and 11 in Rs. 2,00,00,000. - column C.

T o = R o + S o where,––

(6) The amount of income-tax as specified in sub-sections (1) to (5) and T = the total amount beyond which the total amount payable as income- as increased by the applicable surcharge, for the purposes of the Union, o tax and surcharge thereon shall not exceed; calculated in the manner provided therein, shall be further increased by an additional surcharge, for the purposes of the Union, to be called the “Health and Education Cess on income-tax”, calculated at the rate of four per cent. of12 12 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— such income-tax and surcharge so as to fulfil the commitment of the Government to provide and finance quality health services and universalised quality basic education and secondary and higher education.

(7) For the purposes of this section and Parts I-A and IV-A of the First Schedule,—

(a) “domestic company” means an Indian company or any other company which, in respect of its income liable to income-tax under the said Act for the assessment year commencing on the 1st day of April, 2026, has made the prescribed arrangements for the declaration and payment within India of the dividends (including dividends on preference shares) payable out of such income;

(b) “net agricultural income” in relation to a person, means the total amount of agricultural income, from whatever source derived, of that person computed in accordance with the rules contained in Part IV-A of the First Schedule;

(c) all other words and expressions used in this section and Parts I-A and IV-A of the First Schedule but not defined in this sub-section and defined in the said Act shall have the meanings, respectively, assigned to them in said Act.

Income-tax 3. (1) Subject to the provisions of sub-sections (2), (3), (4) and (5), for the under Act 30 tax year commencing on the 1st day of April, 2026, income-tax shall be of 2025. charged under the provisions of the Income-tax Act, 2025 (herein referred to 30 of 2025.

as the said Act) at the rates specified in Part I-B 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 tax year, any net agricultural income exceeding ₹ 5000, 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.12 13 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 13 such income-tax and surcharge so as to fulfil the commitment of the TABLE Government to provide and finance quality health services and universalised Sl. Assessee Maximum quality basic education and secondary and higher education. No. amount not chargeable to

(7) For the purposes of this section and Parts I-A and IV-A of the First income-tax Schedule,— A B C

1. (i) Every individual other than the individual ₹ 250000. referred to in Sl. No. 2 or 3; or

(a) “domestic company” means an Indian company or any other

(ii) Hindu undivided family; or company which, in respect of its income liable to income-tax under the

(iii) association of persons or body of individuals, said Act for the assessment year commencing on the 1st day of April, whether incorporated or not; or 2026, has made the prescribed arrangements for the declaration and payment within India of the dividends (including dividends on preference (iv) every artificial juridical person referred to in shares) payable out of such income; section 2(77)(g) of the said Act, not being an assessee to which Paragraph B, C, D or E of Part I-B of the First schedule applies or to

(b) “net agricultural income” in relation to a person, means the total whom Sl. No. 4 applies. amount of agricultural income, from whatever source derived, of that person computed in accordance with the rules contained in Part IV-A of

2. Every individual, being a resident in India, who is ₹ 300000. the First Schedule; of the age of sixty or more but less than eighty years at any time during the tax year.

3. Every individual, being a resident in India, who is ₹ 500000. and IV-A of the First Schedule but not defined in this sub-section and of the age of eighty years or more at any time during defined in the said Act shall have the meanings, respectively, assigned to the tax year.

them in said Act.

4. Assessee whose income is chargeable to tax under ₹ 400000.

section 202 of the said Act.

Income-tax 3. (1) Subject to the provisions of sub-sections (2), (3), (4) and (5), for the under Act 30 tax year commencing on the 1st day of April, 2026, income-tax shall be (b) For the purposes of clause (a), the income-tax chargeable shall be of 2025. computed as per the following formula:— charged under the provisions of the Income-tax Act, 2025 (herein referred to 30 of 2025.

as the said Act) at the rates specified in Part I-B of the First Schedule and Z = X – Y such tax shall be increased by a surcharge, for the purposes of the Union, n n n calculated in each case in the manner provided therein.

where,––

(2) (a) Where an assessee as specified in column B of the Table below, Z n = the income-tax chargeable for the purposes of clause (a); has, in the tax year, any net agricultural income exceeding ₹ 5000, in addition to the total income, and the total income exceeds the maximum amount not X n = the amount of income-tax determined in respect of the Aggregate chargeable to income-tax as specified in column C of the said Table, in Income (AI n) at the rates specified in Paragraph A of Part I-B of the First respect of the said assessee, the net agricultural income shall be taken into Schedule or section 202 of the said Act, as if such AI n were the total income;

account only for the purpose of charging income-tax in respect of the total and income.

Y = the amount of income-tax determined in respect of the net n agricultural income increased by a sum as specified in column C of the Table mentioned in clause (a) at the rates specified in the said Paragraph A or14 14 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—

section 202 of the said Act, as if the net agricultural income as so increased were the total income;

Aggregate Income (AI ) = Total income + Net agricultural income. n

(3) In cases to which the provisions of Part A, B, C or D of Chapter XIII or section 207 to 218, 223, 224, 307, 308, 311 or 334 of the said Act apply, the tax chargeable shall be determined—

(i) as provided in that Chapter or that section; and

(ii) with reference to the rates imposed by sub-section (1) or the rates as specified in that Chapter or section, as the case may be.

(4) For the purposes of sub-section (3),—

(a) the amount of income-tax computed in accordance with the provisions of section 196, 197 or 198 of the said Act shall be increased by a surcharge, for the purposes of the Union, as provided in Paragraph F of Part I-B of the First Schedule, except in case of—

(i) a domestic company whose income is chargeable to tax under

section 200 or 201 of the said Act;

(ii) an individual or Hindu undivided family or association of persons, or body of individuals, whether incorporated or not, or an artificial juridical person referred to in section 2(77)(g) of the said Act whose income is chargeable to tax under section 202 of the said Act; or

(iii) a co-operative society resident in India, whose income is chargeable to tax under section 203 or 204 of the said Act;

TABLE Sl. Section Person Rate of surcharge No.

A B C D

1. 193, 194, (i) Every individual; (i) Where the total income 199, 206, or exceeds ₹ 5000000 but 207, 208, does not exceed ₹14 15 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 15

section 202 of the said Act, as if the net agricultural income as so increased 209, 210, (ii) Hindu undivided 10000000, at the rate of were the total income; 211, 214, family; or 10%;

218 or Aggregate Income (AI ) = Total income + Net agricultural income. 334. (iii) association of (ii) where the total income n persons, except in a exceeds ₹ 10000000 but

(3) In cases to which the provisions of Part A, B, C or D of Chapter XIII case of an does not exceed ₹ or section 207 to 218, 223, 224, 307, 308, 311 or 334 of the said Act apply, association of 20000000, at the rate of the tax chargeable shall be determined— persons consisting of 15%;

only companies as its

(i) as provided in that Chapter or that section; and members, whether (iii) where the total incorporated or not; income exceeds ₹

(ii) with reference to the rates imposed by sub-section (1) or the rates or 20000000 but does not as specified in that Chapter or section, as the case may be. exceed ₹ 50000000, at the

(iv) body of rate of 25%;

(4) For the purposes of sub-section (3),— individuals, whether incorporated or not; (iv) where the total

(a) the amount of income-tax computed in accordance with the or income exceeds ₹ provisions of section 196, 197 or 198 of the said Act shall be increased by 50000000, at the rate of a surcharge, for the purposes of the Union, as provided in Paragraph F of (v) every artificial 37%.

Part I-B of the First Schedule, except in case of— juridical person referred to in section

(i) a domestic company whose income is chargeable to tax under 2(77)(g) of the said

section 200 or 201 of the said Act; Act,

(ii) an individual or Hindu undivided family or association of not having any persons, or body of individuals, whether incorporated or not, or an income under section artificial juridical person referred to in section 2(77)(g) of the said Act 210 of the said Act, whose income is chargeable to tax under section 202 of the said Act; or and not having any income chargeable to

(iii) a co-operative society resident in India, whose income is tax under section 202 chargeable to tax under section 203 or 204 of the said Act; of the said Act.

(b) in respect of income chargeable to tax under the section as specified 2. 193, 194, (i) Every individual; (i) Where the total income in column B of the Table below, in the case of a person as specified in 199, 206, or exceeds ₹ 5000000 but column C of the said Table, the amount of income-tax computed shall be 207, 208, does not exceed ₹ increased by a surcharge, for the purposes of the Union, calculated at the 209, 210, (ii) association of 10000000, at the rate of rate or rates as specified in column D of the said Table, of such income-tax. 211, 214, persons, except in a 10%;

218 or case of an

334. association of (ii) where the total income TABLE persons consisting of exceeds ₹ 10000000 but Sl. Section Person Rate of surcharge only companies as its does not exceed ₹ No. members, whether 20000000, at the rate of A B C D incorporated or not; 15%;

1. 193, 194, (i) Every individual; (i) Where the total income or 199, 206, or exceeds ₹ 5000000 but (iii) where the total 207, 208, does not exceed ₹ income [excluding16 16 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—

(iii) body of dividend income or short- individuals, whether term or long-term capital incorporated or not; gains as referred to in or section 210(1) [Table: Sl.

Nos. 2 to 5] of the said Act

(iv) every artificial exceeds ₹ 20000000 but juridical person does not exceed ₹ referred to in section 50000000, at the rate of 2(77)(g) of the said 25%;

Act,

(iv) where the total having any income income [excluding under section 210 of dividend income or short- the said Act, and not term or long-term capital having any income gains as referred to in chargeable to tax section 210(1) [Table: Sl.

under section 202 of Nos. 2 to 5] of the said Act the said Act. exceeds ₹ 50000000, at the rate of 37%;

(v) Where the total income [including dividend income or short-term or long-term capital gains as referred to in section 210(1) [Table: Sl. Nos. 2 to 5] of the said Act exceeds ₹ 20000000, but is not covered in clauses

(iii) and (iv), at the rate of 15%;

(vi) where the total income includes any dividend income or short- term or long-term capital gains as referred to in

section 210(1) [Table: Sl.

Nos. 2 to 5] of the said Act the rate of surcharge on the income-tax calculated on that part of income shall not exceed 15% and the provisions of clause (i) or (ii), as the case may be, shall apply accordingly.17 16 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 17

(iii) body of dividend income or short-

3. 193, 194, Association of (i) Where the total income individuals, whether term or long-term capital 199, 206, persons consisting of exceeds ₹ 5000000 but incorporated or not; gains as referred to in 207, 208, only companies as its does not exceed ₹ or section 210(1) [Table: Sl.

209, 210, members. 10000000, at the rate of Nos. 2 to 5] of the said Act 211, 214, 10%;

(iv) every artificial exceeds ₹ 20000000 but 218 or juridical person does not exceed ₹

334. (ii) where the total income referred to in section 50000000, at the rate of exceeds ₹ 10000000, at 2(77)(g) of the said 25%; the rate of 15%.

Act,

(iv) where the total

4. 193, 194, Every co-operative (i) Where the total income having any income income [excluding 199, 206, society except such exceeds ₹ 10000000 but under section 210 of dividend income or short- 207, 208, co-operative society does not exceed ₹ the said Act, and not term or long-term capital 209, 210, whose income is 100000000, at the rate of having any income gains as referred to in 211, 214, chargeable to tax 7%;

chargeable to tax section 210(1) [Table: Sl.

218 or under section 203 or under section 202 of Nos. 2 to 5] of the said Act

334. 204 of the said Act. (ii) where the total income the said Act. exceeds ₹ 50000000, at exceeds ₹ 100000000, at the rate of 37%; the rate of 12%.

(v) Where the total income

5. 193, 194, Every firm or local Where the total income [including dividend 199, 206, authority. exceeds ₹ 10000000, at income or short-term or 207, 208, the rate of 12%. long-term capital gains as 209, 210, referred to in section 211, 214, 210(1) [Table: Sl. Nos. 2 218 or to 5] of the said Act

334. exceeds ₹ 20000000, but is not covered in clauses

6. 193, 194, Every domestic (i) Where the total income

(iii) and (iv), at the rate of 199, 206, company except such exceeds ₹ 10000000 but 15%;

207, 208, domestic company does not exceed ₹ 209, 210, whose income is 100000000, at the rate of

(vi) where the total 211, 214, chargeable to tax 7%; income includes any 218 or under section 200 or dividend income or short-

334. 201 of the said Act. (ii) where the total income term or long-term capital exceeds ₹ 100000000, at gains as referred to in the rate of 12%.

section 210(1) [Table: Sl.

Nos. 2 to 5] of the said Act

7. 193, 194, Every company, (i) Where the total income the rate of surcharge on 199, 206, other than a domestic exceeds ₹ 10000000 but the income-tax calculated 207, 208, company. does not exceed ₹ on that part of income 209, 210, 100000000, at the rate of shall not exceed 15% and 211, 214, 2%;

the provisions of clause (i) 218 or or (ii), as the case may be,

334. shall apply accordingly.18 18 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—

(ii) where the total income exceeds ₹ 100000000, at the rate of 5%.

8. 195(1)(i). Any assessee. 25%

9. 200 or Every domestic 10%

201. company.

10. 202. (i) Every individual; (i) Where the total income or (including dividend income or capital gains

(ii) Hindu undivided under the provisions of family; or sections 196, 197 and 198 of the said Act) exceeds ₹

(iii) association of 5000000 but does not persons, except in a exceed ₹ 10000000, at the case of an rate of 10%; association of persons consisting of (ii) where the total income only companies as its (including dividend members, whether income or capital gains incorporated or not; under the provisions of or sections 196, 197 and 198 of the said Act) exceeds ₹

(iv) body of 10000000 but does not individuals, whether exceed ₹ 20000000, at the incorporated or not; rate of 15%; or

(iii) where the total

(v) every artificial income (excluding juridical person dividend income or capital referred to in section gains under the provisions 2(77)(g) of the said of sections 196, 197 and Act. 198 of the said Act) exceeds ₹ 20000000, at the rate of 25%;

(iv) where the total income (including dividend income or capital gains under the provisions of sections 196, 197 and 198 of the said Act) exceeds ₹ 20000000, but18 19 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 19

(ii) where the total income is not covered in clause exceeds ₹ 100000000, at (iii), at the rate of 15%; the rate of 5%.

(v) where the total income

8. 195(1)(i). Any assessee. 25% includes any dividend income or capital gains

9. 200 or Every domestic 10% under the provisions of

201. company. sections 196, 197 and 198 of the said Act, the rate of

10. 202. (i) Every individual; (i) Where the total income surcharge on the income- or (including dividend tax in respect of that part income or capital gains of income shall not exceed

(ii) Hindu undivided under the provisions of 15% and the provisions of family; or sections 196, 197 and 198 clause (i) or (ii), as the of the said Act) exceeds ₹ case may be, shall apply

(iii) association of 5000000 but does not accordingly. persons, except in a exceed ₹ 10000000, at the case of an rate of 10%; 11. 202. Association of (i) Where the total income association of persons consisting of exceeds ₹ 5000000 but persons consisting of (ii) where the total income only companies as its does not exceed ₹ only companies as its (including dividend members. 10000000, at the rate of members, whether income or capital gains 10%;

incorporated or not; under the provisions of or sections 196, 197 and 198 (ii) where the total income of the said Act) exceeds ₹ exceeds ₹ 10000000, at

(iv) body of 10000000 but does not the rate of 15%. individuals, whether exceed ₹ 20000000, at the incorporated or not; rate of 15%; 12. 203 or Every co-operative 10% or 204. society resident in

(iii) where the total India.

(v) every artificial income (excluding juridical person dividend income or capital 13. 210(1) Specified fund, No surcharge on income- referred to in section gains under the provisions [Table: Sl. referred to in tax computed on that part 2(77)(g) of the said of sections 196, 197 and No. 1] Schedule VI [Note of income as referred to in Act. 198 of the said Act) 1(g)] of the said Act, section 210(1) [Table: Sl.

exceeds ₹ 20000000, at whose income No. 1] of the said Act. the rate of 25%; includes any income under section 210(1)

(iv) where the total [Table: Sl. No. 1] of income (including the said Act. dividend income or capital gains under the provisions of sections 196, 197 and (5) For the purposes of sub-section (4), in respect of the persons 198 of the said Act) mentioned in column B of the Table below, having total income chargeable exceeds ₹ 20000000, but to tax under section 202, 206(1) or 206(2) of the said Act, as the case may be, and such income exceeds the amount as specified in column C of the said20 20 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— Table but does not exceed the amount specified in column D thereof, the total amount payable as income-tax and surcharge thereon shall not exceed the

amount determined as per the following formula:— T = R + S n n n where,–– T = the total amount beyond which the total amount payable as income- n tax and surcharge thereon shall not exceed;

R = the total amount payable as income-tax and surcharge, if applicable, n on an amount as specified in column C of the Table below; and S = the total income – amount as specified in column C of the said Table.

n TABLE Sl. Person specified in Amount Amount No. Table below clause

(b) of sub-section

(4) A B C D

1. Persons specified ₹ 5000000. ₹ 10000000. against Sl. Nos. 1 and 2 in column C. ₹ 10000000. ₹ 20000000. ₹ 20000000. ₹ 50000000. ₹ 50000000. -

2. Person specified ₹ 5000000. ₹ 10000000. against Sl. No. 3 in ₹ 10000000. - column C.

3. Person specified ₹ 10000000. ₹ 100000000. against Sl. No. 4 in ₹ 100000000. - column C.

4. Person specified ₹ 10000000. - against Sl. No. 5 in column C.

5. Persons specified ₹ 10000000. ₹ 100000000. against Sl. Nos. 6 ₹ 100000000. - and 7 in column C.20 21 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 21 Table but does not exceed the amount specified in column D thereof, the total 6. Persons specified ₹ 5000000. ₹ 10000000.

amount payable as income-tax and surcharge thereon shall not exceed the against Sl. Nos. 10 ₹ 10000000. ₹ 20000000.

amount determined as per the following formula:— and 11 in column ₹ 20000000. - C.

T = R + S (6) In cases in which tax has to be charged and paid under section 170(5) n n n or section 352 of the said Act, the tax shall be charged and paid at the rates where,–– as specified in those sections and shall be increased by a surcharge, for the purposes of the Union, calculated at the rate of 12% of such tax.

T = the total amount beyond which the total amount payable as income- n tax and surcharge thereon shall not exceed; (7) In cases in which tax has to be deducted under the sections as specified in column B of the Table below, the deductions shall be made at the rates R = the total amount payable as income-tax and surcharge, if applicable, specified in column C of the said Table, in respect of the persons specified in n on an amount as specified in column C of the Table below; and column D of the said Table, and shall be increased by a surcharge, for the purposes of the Union, calculated at the rate or rates as specified in column E S = the total income – amount as specified in column C of the said Table. of the said Table, of such tax.

n TABLE TABLE Sl. Section under Rates on Person in Rate of Sl. Person specified in Amount Amount No. which tax has which respect of surcharge No. Table below clause to be deduction which

(b) of sub-section deducted is to be deduction

(4) made has to be A B C D made

1. Persons specified ₹ 5000000. ₹ 10000000.

A B C D E against Sl. Nos. 1

1. (i) 393(1) Rates Person to Calculated in and 2 in column C. ₹ 10000000. ₹ 20000000. [Table: Sl. specified whom the cases wherever Nos. 1(i) and in Part II section as prescribed, in the ₹ 20000000. ₹ 50000000.

5]; of the specified in manner as First column B provided in Part ₹ 50000000. -

(ii) 393(2) Schedule. applies. II of the First

2. Person specified ₹ 5000000. ₹ 10000000. [Table: Sl. Schedule. against Sl. No. 3 in ₹ 10000000. - Nos. 7, 8, 9 column C. and 17]; and

3. Person specified ₹ 10000000. ₹ 100000000.

(iii) 393(3) against Sl. No. 4 in ₹ 100000000. - [Table: Sl. column C.

Nos. 1, 2 and 3],

4. Person specified ₹ 10000000. - against Sl. No. 5 in at the rates in column C. force.

2. (i) 392(7); Rates (i) Every (i) Where the

5. Persons specified ₹ 10000000. ₹ 100000000. specified individual; income or the against Sl. Nos. 6 ₹ 100000000. - (ii) 393(1) in or aggregate of such and 7 in column C. [Table: Sl. sections incomes paid or22 22 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— Nos. 1(ii), 2, referred to (ii) Hindu likely to be paid 3, 4, 6, 7, 8(i), in column undivided and subject to the 8(ii), 8(iv), B. family; or deduction 8(v) and exceeds ₹ 8(vi)]; (iii) 5000000 but does association not exceed ₹

(iii) 393(2) of persons, 10000000, at the [Table: Sl. except in a rate of 10%;

Nos. 1 to 6, case of an 10, 11 to 14, association (ii) where the 15 and 16]; of persons income or the and consisting of aggregate of such only incomes paid or

(iv) 393(3) companies likely to be paid [Table: Sl. as its and subject to the Nos. 4 to 7]. members, deduction whether exceeds ₹ incorporated 10000000 but or not; or does not exceed ₹ 20000000, at the

(iv) body of rate of 15%; individuals, whether (iii) where the incorporated income or the or not; or aggregate of such incomes paid or

(v) every likely to be paid artificial and subject to the juridical deduction person exceeds ₹ referred to in 20000000 but

section does not exceed ₹ 2(77)(g) of 50000000, at the the said Act, rate of 25%; being a non- (iv) where the resident, income or the except in aggregate of such case of incomes paid or deduction on likely to be paid dividend and subject to the income deduction under exceeds ₹

section 50000000, at the 393(2)[Tabl rate of 37%. e: Sl. Nos.22 23 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 23 Nos. 1(ii), 2, referred to (ii) Hindu likely to be paid 15 and 16] 3, 4, 6, 7, 8(i), in column undivided and subject to the of the said 8(ii), 8(iv), B. family; or deduction Act or where 8(v) and exceeds ₹ the income 8(vi)]; (iii) 5000000 but does of the person association not exceed ₹ is

(iii) 393(2) of persons, 10000000, at the chargeable [Table: Sl. except in a rate of 10%; to tax under Nos. 1 to 6, case of an section 202 10, 11 to 14, association (ii) where the of the said 15 and 16]; of persons income or the Act.

and consisting of aggregate of such only incomes paid or 3. (i) 392(7); Rates (i) Every (i) Where the

(iv) 393(3) companies likely to be paid specified individual; income or the [Table: Sl. as its and subject to the (ii) 393(1) in or aggregate of such Nos. 4 to 7]. members, deduction [Table: Sl. sections incomes paid or whether exceeds ₹ Nos. 1(ii), 2, referred to (ii) Hindu likely to be paid incorporated 10000000 but 3, 4, 6, 7, 8(i), in column undivided and subject to the or not; or does not exceed ₹ 8(ii), 8(iv), B. family; or deduction 20000000, at the 8(v) and exceeds ₹

(iv) body of rate of 15%; 8(vi)]; (iii) 5000000 but does individuals, association not exceed ₹ whether (iii) where the (iii) 393(2) of persons, 10000000, at the incorporated income or the [Table: Sl. except in a rate of 10%;

or not; or aggregate of such Nos. 1 to 6, case of an incomes paid or 10, 11 to 14, association (ii) where the

(v) every likely to be paid 15 and 16]; of persons income or the artificial and subject to the and consisting of aggregate of such juridical deduction only incomes paid or person exceeds ₹ (iv) 393(3) companies likely to be paid referred to in 20000000 but [Table: Sl. as its and subject to the

section does not exceed ₹ Nos. 4 to 7]. members, deduction 2(77)(g) of 50000000, at the whether exceeds ₹ the said Act, rate of 25%; incorporated 10000000 but or not; or does not exceed ₹ being a non- (iv) where the 20000000, at the resident, income or the (iv) body of rate of 15%;

except in aggregate of such individuals, case of incomes paid or whether (iii) where the deduction on likely to be paid incorporated income or the dividend and subject to the or not; or aggregate of such income deduction incomes paid or under exceeds ₹ (v) every likely to be paid

section 50000000, at the artificial and subject to the 393(2)[Tabl rate of 37%. juridical deduction e: Sl. Nos. person exceeds ₹24 24 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— referred to in 20000000, at the

section rate of 25%.

2(77)(g) of the said Act, being a non- resident, where the income of the person is chargeable to tax under

section 202 of the said Act except in case of deduction on dividend income under

section 393(2)[Tabl e: Sl. Nos.

15 and 16] of the said Act.

4. (i) 392(7); Rates (i) Every (i) Where the specified individual; income or the

(ii) 393(1) in or aggregate of such [Table: Sl. sections incomes paid or Nos. 1(ii), 2, referred to (ii) Hindu likely to be paid 3, 4, 6, 7, 8(i), in column undivided and subject to the 8(ii), 8(iv), B. family; or deduction 8(v) and exceeds ₹ 8(vi)]; (iii) 5000000 but does association not exceed ₹

(iii) 393(2) of persons, 10000000, at the [Table: Sl. except in a rate of 10%;

Nos. 1 to 6, case of an 10, 11 to 14, association (ii) where the 15 and 16]; of persons income or the and consisting of aggregate of such only incomes paid or companies likely to be paid as its and subject to the24 25 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 25 referred to in 20000000, at the (iv) 393(3) members, deduction

section rate of 25%. [Table: Sl. whether exceeds ₹ 2(77)(g) of Nos. 4 to 7]. incorporated 10000000, at the the said Act, or not; or rate of 15%. being a non- (iv) body of resident, individuals, where the whether income of incorporated the person is or not; or chargeable to tax under (v) every

section 202 artificial of the said juridical Act except person in case of referred to in deduction on section dividend 2(77)(g) of income the said Act, under

section being a non- 393(2)[Tabl resident, in e: Sl. Nos. case of 15 and 16] deduction on of the said dividend Act. income under

4. (i) 392(7); Rates (i) Every (i) Where the section specified individual; income or the 393(2)[Tabl

(ii) 393(1) in or aggregate of such e: Sl. Nos. [Table: Sl. sections incomes paid or 15 and 16] Nos. 1(ii), 2, referred to (ii) Hindu likely to be paid of the said 3, 4, 6, 7, 8(i), in column undivided and subject to the Act.

8(ii), 8(iv), B. family; or deduction 8(v) and exceeds ₹ 5. (i) 392(7); Rates Association (i) Where the 8(vi)]; (iii) 5000000 but does specified of persons, income or the association not exceed ₹ (ii) 393(1) in being a non- aggregate of such

(iii) 393(2) of persons, 10000000, at the [Table: Sl. sections resident, and incomes paid or [Table: Sl. except in a rate of 10%; Nos. 1(ii), 2, referred to consisting of likely to be paid Nos. 1 to 6, case of an 3, 4, 6, 7, 8(i), in column only and subject to the 10, 11 to 14, association (ii) where the 8(ii), 8(iv), B. companies deduction 15 and 16]; of persons income or the 8(v) and as its exceeds ₹ and consisting of aggregate of such 8(vi)]; members. 5000000 but only incomes paid or does not exceed ₹ companies likely to be paid (iii) 393(2) 10000000, at the as its and subject to the [Table: Sl. rate of 10%;26 26 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— Nos. 1 to 6, 10, 11 to 14, (ii) where the 15 and 16]; income or the and aggregate of such incomes paid or likely to be paid

(iv) 393(3) and subject to the [Table: Sl. deduction Nos. 4 to 7]. exceeds ₹ 10000000, at the rate of 15%.

6. (i) 392(7); Rates Every co- (i) Where the specified operative income or the

(ii) 393(1) in society, aggregate of such [Table: Sl. sections being a non- incomes paid or Nos. 1(ii), 2, referred to resident. likely to be paid 3, 4, 6, 7, 8(i), in column and subject to the 8(ii), 8(iv), B. deduction 8(v) and exceeds ₹ 8(vi)]; 10000000 but does not exceed ₹

(iii) 393(2) 100000000, at [Table: Sl. the rate of 7%;

Nos. 1 to 6, 10, 11 to 14, (ii) where the 15 and 16]; income or the and aggregate of such incomes paid or

(iv) 393(3) likely to be paid [Table: Sl. and subject to the Nos. 4 to 7]. deduction exceeds ₹ 100000000, at the rate of 12%.

7. (i) 392(7); Rates Every firm, Where the income specified being a non- or the aggregate

(ii) 393(1) in resident. of such incomes [Table: Sl. sections paid or likely to Nos. 1(ii), 2, referred to be paid and 3, 4, 6, 7, 8(i), in column subject to the 8(ii), 8(iv), B. deduction 8(v) and exceeds ₹ 8(vi)]; 10000000, at the rate of 12%.26 27 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 27 Nos. 1 to 6, (iii) 393(2) 10, 11 to 14, (ii) where the [Table: Sl.

15 and 16]; income or the Nos. 1 to 6, and aggregate of such 10, 11 to 14, incomes paid or 15 and 16]; likely to be paid and

(iv) 393(3) and subject to the [Table: Sl. deduction (iv) 393(3) Nos. 4 to 7]. exceeds ₹ [Table: Sl.

10000000, at the Nos. 4 to 7]. rate of 15%.

8. (i) 392(7); Rates Every (i) Where the

6. (i) 392(7); Rates Every co- (i) Where the specified company, income or the specified operative income or the (ii) 393(1) in other than a aggregate of such

(ii) 393(1) in society, aggregate of such [Table: Sl. sections domestic incomes paid or [Table: Sl. sections being a non- incomes paid or Nos. 1(ii), 2, referred to company. likely to be paid Nos. 1(ii), 2, referred to resident. likely to be paid 3, 4, 6, 7, 8(i), in column and subject to the 3, 4, 6, 7, 8(i), in column and subject to the 8(ii), 8(iv), B. deduction 8(ii), 8(iv), B. deduction 8(v) and exceeds ₹ 8(v) and exceeds ₹ 8(vi)]; 10000000 but 8(vi)]; 10000000 but does not exceed ₹ does not exceed ₹ (iii) 393(2) 100000000, at

(iii) 393(2) 100000000, at [Table: Sl. the rate of 2%; [Table: Sl. the rate of 7%; Nos. 1 to 6, Nos. 1 to 6, 10, 11 to 14, (ii) Where the 10, 11 to 14, (ii) where the 15 and 16]; income or the 15 and 16]; income or the and aggregate of such and aggregate of such incomes paid or incomes paid or (iv) 393(3) likely to be paid

(iv) 393(3) likely to be paid [Table: Sl. and subject to the [Table: Sl. and subject to the Nos. 4 to 7]. deduction Nos. 4 to 7]. deduction exceeds ₹ exceeds ₹ 100000000, at 100000000, at the rate of 5%.

the rate of 12%.

(8) In cases in which tax has to be collected under section 393(1) [Table

7. (i) 392(7); Rates Every firm, Where the income : Sl. No. 8(iv). Note 2, Sl. No. 8(iv). Note 6 and Sl. No. 8(vi). Note 6] and specified being a non- or the aggregate 393(3)[Table: Sl. No. 1. Note 2 and Sl. No. 2. Note 2] of the said Act, the

(ii) 393(1) in resident. of such incomes collection shall be made at the rates specified in Part II of the First Schedule, [Table: Sl. sections paid or likely to and shall be increased by a surcharge, for the purposes of the Union, Nos. 1(ii), 2, referred to be paid and calculated, in cases wherever prescribed, in the manner provided therein.

3, 4, 6, 7, 8(i), in column subject to the 8(ii), 8(iv), B. deduction (9) In cases as specified in column B of the Table below, in which tax has 8(v) and exceeds ₹ to be collected under section 394(1) of the said Act, the collection shall be 8(vi)]; 10000000, at the made at the rates specified in that section and shall be increased by a rate of 12%.28 28 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— surcharge, for the purposes of the Union, calculated at the rate or rates specified in column C of the said Table, of such tax.

TABLE Sl. Person, in respect of Rate of surcharge No. which collection has to be made A B C

1. (i) Every individual; or (i) Where the amount or the aggregate of such amounts collected or likely to

(ii) Hindu undivided be collected and subject to the family; or collection exceeds ₹ 5000000 but does not exceed ₹ 10000000, at the rate of

(iii) association of 10%; persons, except in a case of an association (ii) where the amount or the aggregate of persons consisting of of such amounts collected or likely to only companies as its be collected and subject to the members, whether collection exceeds ₹ 10000000 but incorporated or not; or does not exceed ₹ 20000000, at the rate of 15%;

(iv) body of individuals, whether (iii) where the amount or the incorporated or not; or aggregate of such amounts collected or likely to be collected and subject to

(v) every artificial the collection, exceeds ₹ 20000000 juridical person but does not exceed ₹ 50000000, at the referred to in section rate of 25%;

2(77)(g) of the said Act, (iv) where the amount or the aggregate of such amounts collected or likely to being a non-resident, be collected and subject to the except in case where collection exceeds ₹ 50000000, at the the income of such rate of 37%.

person is chargeable to tax under section 202 of the said Act.

2. (i) Every individual; or (i) Where the amount or the aggregate of such amounts collected or likely to

(ii) Hindu undivided be collected and subject to the family; or collection exceeds ₹ 5000000 but does not exceed ₹ 10000000, at the rate of 10%;28 29 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 29 surcharge, for the purposes of the Union, calculated at the rate or rates (iii) association of specified in column C of the said Table, of such tax. persons, except in a (ii) where the amount or the aggregate case of an association of such amounts collected or likely to of persons consisting of be collected and subject to the TABLE only companies as its collection exceeds ₹ 10000000 but members, whether does not exceed ₹ 20000000, at the Sl. Person, in respect of Rate of surcharge incorporated or not; or rate of 15%;

No. which collection has to be made

(iv) body of (iii) where the amount or the A B C individuals, whether aggregate of such amounts collected incorporated or not; or or likely to be collected and subject to

1. (i) Every individual; or (i) Where the amount or the aggregate the collection, exceeds ₹ 20000000, at of such amounts collected or likely to

(v) every artificial the rate of 25%.

(ii) Hindu undivided be collected and subject to the juridical person family; or collection exceeds ₹ 5000000 but does referred to in section not exceed ₹ 10000000, at the rate of 2(77)(g) of the said

(iii) association of 10%;

Act, persons, except in a case of an association (ii) where the amount or the aggregate being a non-resident, of persons consisting of of such amounts collected or likely to where the income of only companies as its be collected and subject to the such person is members, whether collection exceeds ₹ 10000000 but chargeable to tax under incorporated or not; or does not exceed ₹ 20000000, at the

section 202 of the said rate of 15%;

Act.

(iv) body of individuals, whether (iii) where the amount or the

3. Association of persons, (i) Where the amount or the aggregate incorporated or not; or aggregate of such amounts collected being a non-resident, of such amounts collected or likely to or likely to be collected and subject to and consisting of only be collected and subject to the

(v) every artificial the collection, exceeds ₹ 20000000 companies as its collection, exceeds ₹ 5000000 but juridical person but does not exceed ₹ 50000000, at the members. does not exceed ₹ 10000000, at the referred to in section rate of 25%;

rate of 10%;

2(77)(g) of the said Act, (iv) where the amount or the aggregate

(ii) where the amount or the aggregate of such amounts collected or likely to of such amounts collected or likely to being a non-resident, be collected and subject to the be collected and subject to the except in case where collection exceeds ₹ 50000000, at the collection exceeds ₹ 10000000, at the the income of such rate of 37%.

rate of 15%. person is chargeable to tax under section 202

4. Every co-operative (i) Where the amount or the aggregate of the said Act. society, being a non- of such amounts collected or likely to resident. be collected and subject to the

2. (i) Every individual; or (i) Where the amount or the aggregate collection exceeds ₹ 10000000 but of such amounts collected or likely to does not exceed ₹ 100000000, at the

(ii) Hindu undivided be collected and subject to the rate of 7%; family; or collection exceeds ₹ 5000000 but does not exceed ₹ 10000000, at the rate of 10%;30 30 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—

(ii) where the amount or the aggregate of such amounts collected or likely to be collected and subject to the collection exceeds ₹ 100000000, at the rate of 12%.

5. Every firm, being a Where the amount or the aggregate of non-resident. such amounts collected or likely to be collected and subject to the collection exceeds ₹ 10000000, at the rate of 12%.

6. Every company, other (i) Where the amount or the aggregate than a domestic of such amounts collected or likely to company. be collected and subject to the collection exceeds ₹ 10000000 but does not exceed ₹ 100000000, at the rate of 2%;

(ii) where the amount or the aggregate of such amounts collected or likely to be collected and subject to the collection exceeds ₹ 100000000, at the rate of 5%.

(10) Subject to the provisions of sub-section (14), in cases in which,—

(i) income-tax has to be charged under section 316(5), 317(2), 318, 319 or 320(2) of the said Act;

(ii) income-tax has to be deducted from, or paid on, income chargeable under the head “Salaries” under section 392 (other than sub-

section (7) of the said section) of the said Act;

(iii) income-tax has to be deducted under section 393(1)[Table: Sl.

No. 8(iii)] of the said Act; or

(iv) the “advance tax” payable under Chapter XIX-C of the said Act has to be computed at the rate or rates in force, such income-tax or, as the case may be, “advance tax” shall be charged, deducted or computed at the rate or rates specified in Part III of the First Schedule and such tax shall be increased by a surcharge, for the purposes of the Union, calculated in such cases and in such manner as provided therein.30 31 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 31

(ii) where the amount or the aggregate (11) For the purposes of sub-section (10), in cases to which the provisions of such amounts collected or likely to of Part A, B, C or D of Chapter XIII or sections 207 to 218, 223, 224, 307, be collected and subject to the 308, 311 or 334 of the said Act apply, “advance tax” shall be computed with collection exceeds ₹ 100000000, at reference to the rates imposed by this sub-section and sub-sections (10), (12) the rate of 12%. and (13) or the rates as specified in that Chapter or section, as the case may be.

5. Every firm, being a Where the amount or the aggregate of non-resident. such amounts collected or likely to be (12) For the purposes of sub-sections (10) and (11),— collected and subject to the collection exceeds ₹ 10000000, at the rate of (a) the amount of “advance tax” computed in accordance with the 12%. provisions of section 196, 197 or 198 of the said Act shall be increased by a surcharge, for the purposes of the Union, as provided in Paragraph F of

6. Every company, other (i) Where the amount or the aggregate Part III of the First Schedule, except in case of,— than a domestic of such amounts collected or likely to company. be collected and subject to the (i) a domestic company whose income is chargeable to tax under collection exceeds ₹ 10000000 but section 200 or 201 of the said Act;

does not exceed ₹ 100000000, at the rate of 2%; (ii) an individual or Hindu undivided family or association of persons, or body of individuals, whether incorporated or not, or an

(ii) where the amount or the aggregate artificial juridical person referred to in section 2(77)(g) of the said Act of such amounts collected or likely to whose income is chargeable to tax under section 202 of the said Act; or be collected and subject to the collection exceeds ₹ 100000000, at (iii) a co-operative society resident in India, whose income is the rate of 5%. chargeable to tax under section 203 or 204 of the said Act;

(b) In respect of income chargeable to tax under the section as specified

(10) Subject to the provisions of sub-section (14), in cases in which,— in column B of the Table below, in the case of a person as specified in column C of the said Table, the amount of “advance tax” computed shall be

(i) income-tax has to be charged under section 316(5), 317(2), 318, increased by a surcharge, for the purposes of the Union, calculated at the 319 or 320(2) of the said Act; rate or rates as specified in column D of the said Table, of such “advance tax”.

(ii) income-tax has to be deducted from, or paid on, income chargeable under the head “Salaries” under section 392 (other than sub-

section (7) of the said section) of the said Act; TABLE Sl. Section Person Rate of surcharge

(iii) income-tax has to be deducted under section 393(1)[Table: Sl.

No.

No. 8(iii)] of the said Act; or A B C D

1. 193, 194, 199, (i) Every (i) Where the total income

(iv) the “advance tax” payable under Chapter XIX-C of the said Act 206, 207, 208, individual; or exceeds ₹ 5000000 but does has to be computed at the rate or rates in force, 209, 210, 211, not exceed ₹ 10000000, at 214, 218 or (ii) Hindu the rate of 10%;

such income-tax or, as the case may be, “advance tax” shall be charged,

334. undivided deducted or computed at the rate or rates specified in Part III of the First family; or (ii) where the total income Schedule and such tax shall be increased by a surcharge, for the purposes of exceeds ₹ 10000000 but the Union, calculated in such cases and in such manner as provided therein.

(iii) association does not exceed ₹ 20000000, of persons, at the rate of 15%;32 32 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— except in a case of an association (iii) where the total income of persons exceeds ₹ 20000000 but consisting of does not exceed ₹ 50000000, only companies at the rate of 25%;

as its members, whether (iv) where the total income incorporated or exceeds ₹ 50000000, at the not; or rate of 37%.

(iv) body of individuals, whether incorporated or not; or

(v) every artificial juridical person referred to in

section 2(77)(g) of the said Act, not having any income under

section 210 of the said Act, and not having any income chargeable to tax under

section 202 of the said Act.

2. 193, 194, 199, (i) Every (i) Where the total income 206, 207, 208, individual; or exceeds ₹ 5000000 but does 209, 210, 211, not exceed ₹ 10000000, at 214, 218 or (ii) association the rate of 10%;

334. of persons, except in a case (ii) where the total income of an association exceeds ₹ 10000000 but of persons does not exceed ₹ 20000000, consisting of at the rate of 15%; only companies as its members, (iii) where the total income whether [excluding dividend income32 33 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 33 except in a case incorporated or or short term or long-term of an association (iii) where the total income not; or capital gains as referred to in of persons exceeds ₹ 20000000 but

section 210(1)[Table: Sl. consisting of does not exceed ₹ 50000000,

(iii) body of Nos. 2 to 5] of the said Act only companies at the rate of 25%; individuals, exceeds ₹ 20000000 but as its members, whether does not exceed ₹ 50000000, whether (iv) where the total income incorporated or at the rate of 25%;

incorporated or exceeds ₹ 50000000, at the not; or not; or rate of 37%.

(iv) where the total income

(iv) every [excluding dividend income

(iv) body of artificial or short term or long-term individuals, juridical person capital gains as referred to in whether referred to in section 210(1)[Table: Sl. incorporated or

section 2(77)(g) Nos. 2 to 5] of the said Act not; or of the said Act, exceeds ₹ 50000000, at the rate of 37%;

(v) every having any artificial income under (v) where the total income juridical person

section 210 of [including dividend income referred to in the said Act and or short term or long-term

section 2(77)(g) not having any capital gains as referred to in of the said Act, income section 210(1)[Table: Sl. chargeable to Nos. 2 to 5] of the said Act not having any tax under exceeds ₹ 20000000, but is income under

section 202 of not covered in clauses (iii)

section 210 of the said Act. and (iv), at the rate of 15%; the said Act, and not having any

(vi) where the total income income includes any dividend chargeable to income or short term or tax under long-term capital gains as

section 202 of referred to in section the said Act.

210(1)[Table: Sl. Nos. 2 to 5] of the said Act, the rate of

2. 193, 194, 199, (i) Every (i) Where the total income surcharge on the advance tax 206, 207, 208, individual; or exceeds ₹ 5000000 but does computed on that part of 209, 210, 211, not exceed ₹ 10000000, at income shall not exceed 15% 214, 218 or (ii) association the rate of 10%;

and the provisions of clause

334. of persons,

(i) or (ii), as the case may be, except in a case (ii) where the total income shall apply accordingly. of an association exceeds ₹ 10000000 but of persons does not exceed ₹ 20000000,

3. 193, 194, 199, Association of (i) Where the total income consisting of at the rate of 15%;

206, 207, 208, persons exceeds ₹ 5000000 but does only companies 209, 210, 211, consisting of not exceed ₹ 10000000, at as its members, (iii) where the total income 214, 218 or only companies the rate of 10%;

whether [excluding dividend income

334. as its members.34 34 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—

(ii) where the total income exceeds ₹ 10000000, at the rate of 15%.

4. 193, 194, 199, Every co- (i) Where the total income 206, 207, 208, operative exceeds ₹ 10000000 but does 209, 210, 211, society except not exceed ₹ 100000000, at 214, 218 or such co- the rate of 7%;

334. operative society whose (ii) where the total income income is exceeds ₹ 100000000, at the chargeable to rate of 12%. tax under

section 203 or 204 of the said Act.

5. 193, 194, 199, Every firm or Where the total income 206, 207, 208, local authority. exceeds ₹ 10000000, at the 209, 210, 211, rate of 12%.

214, 218 or

334.

6. 193, 194, 199, Every domestic (i) Where the total income 206, 207, 208, company except exceeds ₹ 10000000 but does 209, 210, 211, such domestic not exceed ₹ 100000000, at 214, 218 or company whose the rate of 7%;

334. income is chargeable to (ii) where the total income tax under exceeds ₹ 100000000, at the

section 200 or rate of 12%.

201 of the said Act.

7. 193, 194, 199, Every company, (i) Where the total income 206, 207, 208, other than a exceeds ₹ 10000000 but does 209, 210, 211, domestic not exceed ₹ 100000000, at 214, 218 or company. the rate of 2%;

334.

(ii) where the total income exceeds ₹ 100000000, at the rate of 5%.

8. 195(1)(i). Any assessee. 25%34 35 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 35

(ii) where the total income 9. 200 or 201. Every domestic 10% exceeds ₹ 10000000, at the company. rate of 15%.

10. 202. (i) Every (i) Where the total income

4. 193, 194, 199, Every co- (i) Where the total income individual; or (including dividend income 206, 207, 208, operative exceeds ₹ 10000000 but does or capital gains under the 209, 210, 211, society except not exceed ₹ 100000000, at (ii) Hindu provisions of sections 196, 214, 218 or such co- the rate of 7%; undivided 197 and 198 of the said Act)

334. operative family; or exceeds ₹ 5000000 but does society whose (ii) where the total income not exceed ₹ 10000000, at income is exceeds ₹ 100000000, at the (iii) association the rate of 10%; chargeable to rate of 12%. of persons, tax under except in a case (ii) where the total income

section 203 or of an association (including dividend income 204 of the said of persons or capital gains under the Act. consisting of provisions of sections 196, only companies 197 and 198 of the said Act)

5. 193, 194, 199, Every firm or Where the total income as its members, exceeds ₹ 10000000 but 206, 207, 208, local authority. exceeds ₹ 10000000, at the whether does not exceed ₹ 20000000, 209, 210, 211, rate of 12%. incorporated or at the rate of 15%;

214, 218 or not; or

334. (iii) where the total income

(iv) body of (excluding dividend income

6. 193, 194, 199, Every domestic (i) Where the total income individuals, or capital gains under the 206, 207, 208, company except exceeds ₹ 10000000 but does whether provisions of sections 196, 209, 210, 211, such domestic not exceed ₹ 100000000, at incorporated or 197 and 198 of the said Act) 214, 218 or company whose the rate of 7%; not; or exceeds ₹ 20000000, at the

334. income is rate of 25%; chargeable to (ii) where the total income (v) every tax under exceeds ₹ 100000000, at the artificial (iv) where the total income

section 200 or rate of 12%. juridical person (including dividend income 201 of the said referred to in or capital gains under the Act. section 2(77)(g) provisions of sections 196, of the said Act. 197 and 198 of the said Act)

7. 193, 194, 199, Every company, (i) Where the total income exceeds ₹ 20000000, but is 206, 207, 208, other than a exceeds ₹ 10000000 but does not covered in clause (iii), at 209, 210, 211, domestic not exceed ₹ 100000000, at the rate of 15%;

214, 218 or company. the rate of 2%;

334. (v) where the total income

(ii) where the total income includes any dividend exceeds ₹ 100000000, at the income or capital gains rate of 5%. under the provisions of sections 196, 197 and 198 of

8. 195(1)(i). Any assessee. 25% the said Act, the rate of surcharge on the “advance tax” in respect of that part of36 36 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— income shall not exceed 15% and the provisions of clause

(i) or (ii), as the case may be, shall apply accordingly.

11. 202. Association of (i) Where the total income persons exceeds ₹ 5000000 but does consisting of not exceed ₹ 10000000, at only companies the rate of 10%; as its members.

(ii) where the total income exceeds ₹ 10000000, at the rate of 15%.

12. 203 or 204. Every co- 10% operative society resident in India.

13. 210(1)[Table: Specified fund, No surcharge on advance tax Sl. No. 1]. referred to in computed on that part of Schedule VI income as referred to in [Note 1(g)] of section 210(1)[Table: Sl. No. the said Act, 1] of the said Act.

whose income includes any income under

section 210(1) [Table: Sl. No.

1] of the said Act.

(13) For the purposes of sub-section (12), in respect of the persons mentioned in column B of the Table below, having total income chargeable to tax under section 202, 206(1) or 206(2) of the said Act, as the case may be, and such income exceeds the amount as specified in column C of the said Table but does not exceed the amount specified in column D thereof, the total amount payable as “advance tax” on such income and surcharge thereon shall

not exceed the amount determined as per the following formula:— T = R + S a a a where,––36 37 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 37 income shall not exceed 15% T = the total amount beyond which the total amount payable as “advance a and the provisions of clause tax” on total income chargeable to tax under section 202, 206(1) or 206(2) of

(i) or (ii), as the case may be, the said Act, as the case may be, and surcharge thereon shall not exceed; shall apply accordingly.

R = the total amount payable as income-tax and surcharge, if applicable, a

11. 202. Association of (i) Where the total income on an amount as specified in column C of the Table below; and persons exceeds ₹ 5000000 but does consisting of not exceed ₹ 10000000, at S = the total income – amount as specified in column C of the said Table.

a only companies the rate of 10%; as its members.

(ii) where the total income TABLE exceeds ₹ 10000000, at the Sl. Person specified in Amount Amount rate of 15%. No. Table below clause

(b) of sub-section

12. 203 or 204. Every co- 10% (12) operative A B C D society resident 1. Persons specified ₹ 5000000. ₹ 10000000. in India. against Sl. Nos. 1 and 2 in column C. ₹ 10000000. ₹ 20000000.

13. 210(1)[Table: Specified fund, No surcharge on advance tax Sl. No. 1]. referred to in computed on that part of ₹ 20000000. ₹ 50000000.

Schedule VI income as referred to in [Note 1(g)] of section 210(1)[Table: Sl. No. ₹ 50000000. - the said Act, 1] of the said Act. 2. Person specified ₹ 5000000. ₹ 10000000. whose income against Sl. No. 3 in ₹ 10000000. - includes any column C.

income under

section 210(1) 3. Person specified ₹ 10000000. ₹ 100000000. [Table: Sl. No. against Sl. No. 4 in ₹ 100000000. - 1] of the said column C.

Act.

4. Person specified ₹ 10000000. - against Sl. No. 5 in

(13) For the purposes of sub-section (12), in respect of the persons column C. mentioned in column B of the Table below, having total income chargeable to tax under section 202, 206(1) or 206(2) of the said Act, as the case may be, 5. Persons specified ₹ 10000000. ₹ 100000000.

and such income exceeds the amount as specified in column C of the said against Sl. Nos. 6 ₹ 100000000. - Table but does not exceed the amount specified in column D thereof, the total and 7 in column C.

amount payable as “advance tax” on such income and surcharge thereon shall

not exceed the amount determined as per the following formula:— 6. Persons specified ₹ 5000000. ₹ 10000000. against Sl. Nos. 10 ₹ 10000000. ₹ 20000000.

T a = R a + S a and 11 in column C. ₹ 20000000. - where,––

(14) (a) Where an assessee, as specified in column B of the Table below, has, in the tax year, if by virtue of any provision of the said Act, income-tax38 38 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— is to be charged in respect of the income of a period other than the tax year, in such other period, any net agricultural income exceeding ₹ 5000 in addition to the total income, which exceeds the maximum amount not chargeable to income-tax, as specified in column C of the said Table, in respect of the said assessee, then, in charging income-tax under section 317(2) or 318 or 319 or 320(2) of the said Act or in computing the “advance tax” payable under

Chapter XIX-C of the said Act, at the rate or rates in force, the net agricultural income shall be taken into account, only for the purpose of charging or computing such income-tax or, as the case may be, “advance tax” in respect of the total income.

TABLE Sl. Assessee Maximum amount not No. chargeable to income-tax A B C

1. (i) Every individual other than ₹ 250000. the individual referred to in Sl. No. 2 or 3; or

(ii) Hindu undivided family; or

(iii) association of persons or body of individuals, whether incorporated or not; or

(iv) every artificial juridical person referred to in section 2(77)(g) of the said Act, not being an assessee to which Paragraph B, C, D or E of Part I-B of the First schedule applies or to whom Sl. No. 4 applies.

2. Every individual, being a resident in ₹ 300000.

India, who is of the age of sixty or more but less than eighty years at any time during the tax year.

3. Every individual, being a resident in ₹ 500000.

India, who is of the age of eighty years or more at any time during the tax year.39 38 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 39

4. Assessee whose income is chargeable ₹ 400000. is to be charged in respect of the income of a period other than the tax year, to tax under section 202 of the said in such other period, any net agricultural income exceeding ₹ 5000 in addition Act.

to the total income, which exceeds the maximum amount not chargeable to income-tax, as specified in column C of the said Table, in respect of the said assessee, then, in charging income-tax under section 317(2) or 318 or 319 or

(b) For the purposes of clause (a), the income-tax or, as the case may 320(2) of the said Act or in computing the “advance tax” payable under be, “advance tax” chargeable shall be computed as per the following

Chapter XIX-C of the said Act, at the rate or rates in force, the net agricultural

formula:— income shall be taken into account, only for the purpose of charging or computing such income-tax or, as the case may be, “advance tax” in respect Z = X – Y of the total income. a a a where,–– TABLE Z = the income-tax or, as the case may be, “advance tax” chargeable for Sl. Assessee Maximum amount not a the purposes of clause (a);

No. chargeable to income-tax A B C X = the amount of income-tax or “advance tax” determined in respect of

1. (i) Every individual other than ₹ 250000. a the Aggregate Income (AI ) at the rates specified in Paragraph A of Part III the individual referred to in Sl. No. 2 a of the First Schedule or section 202 of the said Act, as if such AI were the or 3; or n total income; and

(ii) Hindu undivided family; or Y = the amount of income-tax or “advance tax” determined in respect of a the net agricultural income increased by a sum as specified in column C of

(iii) association of persons or body the Table in clause (a) at the rates specified in the said Paragraph A or section of individuals, whether incorporated 202 of the said Act, as if the net agricultural income as so increased were the or not; or total income;

(iv) every artificial juridical person Aggregate Income (AI ) = Total income + Net agricultural income. referred to in section 2(77)(g) of a the said Act,

(c) The amount of income-tax or “advance tax” so arrived at, shall be increased by a surcharge for the purposes of the Union, calculated in each not being an assessee to which case, in the manner provided in this section or Paragraph F [(Table 1: Sl.

Paragraph B, C, D or E of Part I-B of Nos. 1 and 2) and (Table 2: Sl. Nos. 1 and 2)] of Part III of the First the First schedule applies or to whom Schedule.

Sl. No. 4 applies.

(15) The amount of income-tax as specified in sub-sections (1) to (5) and

2. Every individual, being a resident in ₹ 300000. as increased by the applicable surcharge, for the purposes of the Union, India, who is of the age of sixty or calculated in the manner provided therein, shall be further increased by an more but less than eighty years at any additional surcharge, for the purposes of the Union, to be called the “Health time during the tax year.

and Education Cess on income-tax”, calculated at the rate of 4% of such income-tax and surcharge so as to fulfil the commitment of the Government

3. Every individual, being a resident in ₹ 500000. to provide and finance quality health services and universalised quality basic India, who is of the age of eighty years education and secondary and higher education.

or more at any time during the tax year.

(16) The amount of income-tax as specified in sub-sections (6) to (14) and as increased by the applicable surcharge, for the purposes of the Union,40 40 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— calculated in the manner provided therein, shall be further increased by an additional surcharge, for the purposes of the Union, to be called the “Health and Education Cess on income-tax”, calculated at the rate of 4% of such income-tax and surcharge so as to fulfil the commitment of the Government to provide and finance quality health services and universalised quality basic education and secondary and higher education.

(17) The provisions of sub-section (16) shall not apply––

(i) to cases in which tax is to be deducted or collected under the sections of the said Act mentioned in sub-sections (7), (8) and (9), if the income subjected to deduction of tax at source or collection of tax at source is paid to a domestic company and any other person who is resident in India;

(18) For the purposes of this section and Parts I-B, II, III and IV-B of the First Schedule,—

(a) “domestic company” means an Indian company or any other company which, in respect of its income liable to income-tax under the said Act, for the tax year commencing on the 1st April, 2026, has made the prescribed arrangements for the declaration and payment within India of the dividends (including dividends on preference shares) payable out of such income;

(b) “insurance commission” means any remuneration or reward, whether by way of commission or otherwise, for soliciting or procuring insurance business (including business relating to the continuance, renewal or revival of policies of insurance);

(c) “net agricultural income” in relation to a person, means the total amount of agricultural income, from whatever source derived, of that person computed in accordance with the rules contained in Part IV-B of the First Schedule;

(d) all other words and expressions used in this section and Parts I-B, II, III and IV-B of the First Schedule but not defined in this sub-section and defined in the said Act shall have the meanings, respectively, assigned to them in the said Act.40 41 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 41 calculated in the manner provided therein, shall be further increased by an CHAPTER III additional surcharge, for the purposes of the Union, to be called the “Health and Education Cess on income-tax”, calculated at the rate of 4% of such DIRECT TAXES income-tax and surcharge so as to fulfil the commitment of the Government to provide and finance quality health services and universalised quality basic A.–– Income-tax under the Income-tax Act, 1961 education and secondary and higher education.

Amendment 4. In section 92CA of the Income-tax Act, 1961 (hereafter in this Part 43 of 1961.

(17) The provisions of sub-section (16) shall not apply–– of section referred to as the Income-tax Act), after sub-section (3A), the following sub- 92CA.

section shall be inserted and shall be deemed to have been inserted with effect

(i) to cases in which tax is to be deducted or collected under the from the 1st day of June, 2007, namely:–– sections of the said Act mentioned in sub-sections (7), (8) and (9), if the income subjected to deduction of tax at source or collection of tax at “(3AA). Notwithstanding anything contained in any judgment, order source is paid to a domestic company and any other person who is resident or decree of any court, for the purposes of making order under sub-section in India;

(3), the calculation of sixty days shall be made and shall always be deemed to have been made in the following manner, namely:––

(ii) in respect of income-tax as specified in sub-sections (10) to (13), calculated on income, referred to in section 210(1) [Table: Sl. No. 1] of the said Act, of specified fund referred to in Schedule VI [Note 1(g)] of (a) where the period of limitation expires on 31st of March of any year the said Act. (not being a leap year), the order under sub-section (3) may be made up to the 30th of January of that year;

(18) For the purposes of this section and Parts I-B, II, III and IV-B of the First Schedule,—

(b) where the period of limitation expires on 31st of March of any year (being a leap year), the order under sub-section (3) may be made up to the

(a) “domestic company” means an Indian company or any other 31st of January of that year; company which, in respect of its income liable to income-tax under the said Act, for the tax year commencing on the 1st April, 2026, has made the prescribed arrangements for the declaration and payment within India of the

(c) where the period of limitation expires on 31st of December of any dividends (including dividends on preference shares) payable out of such year, the order under sub-section (3) may be made up to the 1st of income;

November of that year.”.

(b) “insurance commission” means any remuneration or reward, whether by way of commission or otherwise, for soliciting or procuring Amendment 5. In section 139 of the Income-tax Act, with effect from the 1st day of insurance business (including business relating to the continuance, renewal of section March, 2026,––

139. or revival of policies of insurance);

(a) in sub-section (1), for Explanation 2, the following Explanation shall

(c) “net agricultural income” in relation to a person, means the total be substituted and shall be deemed to have been substituted, namely:–– amount of agricultural income, from whatever source derived, of that person computed in accordance with the rules contained in Part IV-B of the First Schedule; ‘Explanation 2.––For the purposes of this sub-section, “due date” in respect of the persons mentioned in column B of the Table below, subject

(d) all other words and expressions used in this section and Parts I-B, to the conditions as mentioned in column C of the said Table, shall be the II, III and IV-B of the First Schedule but not defined in this sub-section and due date of assessment year as mentioned in column D thereof:

defined in the said Act shall have the meanings, respectively, assigned to them in the said Act.42 42 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— TABLE Sl. Person Conditions Due date No.

A B C D

1. Assessee, including the Where the 30th partners of the firm or the provisions of November. spouse of such partner (if section 92E

section 5A applies to such apply. spouse).

2. (i) Company; Where the 31st October. provisions of

(ii) Assessee (other than a section 92E do company) whose accounts are not apply. required to be audited under this Act or under any other law for the time being in force;

(iii) partner of a firm whose accounts are required to be audited under this Act or under any other law for the time being in force or the spouse of such partner (if section 5A applies to such spouse).

3. (i) Assessee having income Where the 31st August. from profits and gains of provisions of business or profession whose section 92E do accounts are not required to be not apply. audited under this Act or under any other law for the time being in force;

(ii) partner of a firm whose accounts are not required to be audited under this Act or under any other law for the time being in force or the spouse of such partner (if section 5A applies to such spouse).

4. Any other assessee. 31st July.’;

(b) for sub-section (5), the following sub-section shall be substituted and shall be deemed to have been substituted, namely:––43 42 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 43 TABLE “(5) If any person, having furnished a return under sub-section (1) or sub-section (4), discovers any omission or any wrong statement therein, Sl. Person Conditions Due date he may, subject to the provisions of section 234-I, furnish a revised return No.

at any time before the end of the relevant assessment year or before the A B C D completion of the assessment, whichever is earlier.”;

1. Assessee, including the Where the 30th partners of the firm or the provisions of November. spouse of such partner (if section 92E (c) in sub-section (8A),––

section 5A applies to such apply. spouse). (i) in the first proviso, in item (i), after the words “return of a loss”, the words “except in a case referred to in the sixth proviso” shall be

2. (i) Company; Where the 31st October. inserted; provisions of

(ii) Assessee (other than a section 92E do

(ii) in the third proviso, in item (b), after the words “in his case”, the company) whose accounts are not apply. words “except in a case referred to in the eighth proviso” shall be inserted; required to be audited under this Act or under any other law

(iii) in the sixth proviso, after the words “return of income”, the words for the time being in force; “or such updated return has the effect of reducing the loss” shall be

(iii) partner of a firm whose inserted; accounts are required to be audited under this Act or under (iv) after the seventh proviso, the following proviso shall be inserted,

any other law for the time being namely:–– in force or the spouse of such partner (if section 5A applies to “Provided also that an updated return may be furnished by a such spouse). person for the relevant assessment year in pursuance of a notice under

section 148 within such period as specified in the said notice and in

3. (i) Assessee having income Where the 31st August. such a case, the assessee shall be precluded from filing return in from profits and gains of provisions of pursuance of the said notice in any other manner.”.

business or profession whose section 92E do accounts are not required to be not apply. audited under this Act or under Amendment 6. In section 140B of the Income-tax Act, after sub-section (3), the any other law for the time being of section following sub-section shall be inserted and shall be deemed to have been 140B.

in force; inserted with effect from the 1st day of March, 2026, namely:–– “(3A) Where an updated return is filed in pursuance of a notice issued

(ii) partner of a firm whose under section 148 within the period specified in the said notice, the additional accounts are not required to be audited under this Act or under income-tax payable under sub-section (3) shall be increased by a further sum any other law for the time being of ten per cent. of the aggregate of tax and interest payable, as determined in in force or the spouse of such sub-section (1) or sub-section (2), as the case may be.”.

partner (if section 5A applies to such spouse).

Amendment 7. In section 144C of the Income-tax Act,–– of section

4. Any other assessee. 31st July.’;

144C.

(a) after sub-section (4), the following sub-section shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2009, namely:––

(b) for sub-section (5), the following sub-section shall be substituted and shall be deemed to have been substituted, namely:––44 44 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— “(4A) Notwithstanding anything contained in any judgment,

order or decree of any court, or section 153, for the removal of doubts, it is hereby clarified for the purposes of sub-section (4) that where a draft of the proposed order of assessment under sub-

section (1) is forwarded within the time period allowed under

section 153, further time period available to the Assessing Officer to complete the assessment under sub-section (3) shall be governed and shall always be deemed to have been governed by the provisions of sub-section (4).”;

(b) after sub-section (4A) as so inserted, the following sub-section shall be inserted and shall be deemed to have been inserted with effect from the 1st day of October, 2009, namely: –– “(4B) Notwithstanding anything contained in any judgment,

order or decree of any court, or section 153B, for the removal of doubts, it is hereby clarified for the purposes of sub-section (4) that where a draft of the proposed order of assessment under sub-

section (1) is forwarded within the time period allowed under

section 153B, further time period available to the Assessing Officer to complete the assessment under sub-section (3) shall be governed and shall always be deemed to have been governed by the provisions of sub-section (4).”;

(c) after sub-section (13), the following sub-section shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2009, namely:–– “(13A) Notwithstanding anything contained in any judgment,

order or decree of any court, or section 153, for the removal of doubts, it is hereby clarified for the purposes of sub-section (13) that where a draft of the proposed order of assessment under sub-

section (1) is forwarded within the time period allowed under

(d) after sub-section (13A) as so inserted, the following sub-section shall be inserted and shall be deemed to have been inserted with effect from the 1st day of October, 2009, namely:––44 45 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 45 “(4A) Notwithstanding anything contained in any judgment, “(13B) Notwithstanding anything contained in any judgment, order

order or decree of any court, or section 153, for the removal of or decree of any court, or section 153B, for the removal of doubts, it is doubts, it is hereby clarified for the purposes of sub-section (4) that hereby clarified for the purposes of sub-section (13) that where a draft where a draft of the proposed order of assessment under sub- of the proposed order of assessment under sub-section (1) is forwarded

section (1) is forwarded within the time period allowed under within the time period allowed under section 153B, time period

section 153, further time period available to the Assessing Officer available for the Assessing Officer under sub-section (13) to pass the to complete the assessment under sub-section (3) shall be governed assessment order upon receipt of the direction issued under sub-section and shall always be deemed to have been governed by the (5), shall be governed and shall always be deemed to have been provisions of sub-section (4).”; governed by the provisions of sub-sections (12) and (13).”.

(b) after sub-section (4A) as so inserted, the following sub-section Insertion of 8. After section 147 of the Income-tax Act, the following section shall shall be inserted and shall be deemed to have been inserted with effect new section be inserted and shall be deemed to have been inserted with effect from the 1st 147A.

from the 1st day of October, 2009, namely: –– day of April, 2021, namely:–– “(4B) Notwithstanding anything contained in any judgment, Assessing “147A. Notwithstanding anything contained in any judgement, order

order or decree of any court, or section 153B, for the removal of Officer for or decree of any court or in section 151A or in any scheme framed purposes of doubts, it is hereby clarified for the purposes of sub-section (4) that thereunder, for the removal of doubts, it is hereby clarified that the sections 148 where a draft of the proposed order of assessment under sub- Assessing Officer for the purposes of sections 148 and 148A shall mean and 148A.

section (1) is forwarded within the time period allowed under and shall always be deemed to have meant to be an Assessing Officer other

section 153B, further time period available to the Assessing than the National Faceless Assessment Centre or any assessment unit Officer to complete the assessment under sub-section (3) shall be referred to in sub-section (3) of section 144B.”.

governed and shall always be deemed to have been governed by the provisions of sub-section (4).”;

Amendment 9. In section 153 of the Income-tax Act, after sub-section (9), the of section following sub-section shall be inserted and shall be deemed to have been

153.

(c) after sub-section (13), the following sub-section shall be inserted with effect from the 1st day of April, 2009, namely:–– inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2009, namely:–– “(10) Notwithstanding anything contained in any judgment, order or decree of any court, for the removal of doubts, it is hereby clarified that “(13A) Notwithstanding anything contained in any judgment, in terms of provisions of sub-sections (1) to (4), the draft of the proposed

order or decree of any court, or section 153, for the removal of

order of assessment referred to in sub-section (1) of section 144C shall be doubts, it is hereby clarified for the purposes of sub-section (13) made, and shall always be deemed to have been made, at any time up to that where a draft of the proposed order of assessment under sub- the time limit of assessment, reassessment or recomputation referred to in

section (1) is forwarded within the time period allowed under the said sub-sections.”.

section 153, time period available for the Assessing Officer under sub-section (13) to pass the assessment order upon receipt of the direction issued under sub-section (5), shall be governed and shall Amendment 10. In section 153B of the Income-tax Act, after sub-section (1), the always be deemed to have been governed by the provisions of sub- of section following sub-section shall be inserted and shall be deemed to have been sections (12) and (13).”; 153B.

inserted with effect from the 1st day of October, 2009, namely:––

(d) after sub-section (13A) as so inserted, the following sub-section “(1A) Notwithstanding anything contained in any judgment, order shall be inserted and shall be deemed to have been inserted with effect or decree of any court, for the removal of doubts, it is hereby clarified from the 1st day of October, 2009, namely:–– that in terms of provisions of this section, the draft of the proposed order of assessment referred to in sub-section (1) of section 144C shall be made, and shall always be deemed to have been made, at any time up to46 46 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— the time limit of assessment, reassessment or recomputation referred to in this section.”.

Amendment 11. In section 220 of the Income-tax Act, 1961, in sub-section (2), after of section the third proviso, the following proviso shall be inserted and shall be deemed

220. to have been inserted with effect from the 1st day of March, 2026, namely:– – “Provided also that no interest shall be charged under this sub-section in respect of any demand raised on account of penalty levied under section 270A––

(a) up to the date of passing of the order under section 250;

(b) up to the date of passing of the order under section 254, where the assessment or reassessment has been made in pursuance to directions issued by the Dispute Resolution Panel under section 144C.”.

Insertion of 12. After section 234H of the Income-tax Act, the following section shall new section be inserted and shall be deemed to have been inserted, with effect from the 234-I.

1st day of March, 2026, namely:–– Fee for “234-I. Without prejudice to the provisions of this Act, where any furnishing person furnishes a return of income under sub-section (5) of section 139, revised beyond nine months but before twelve months from the end of the relevant return of assessment year, he shall pay by way of a fee,–– income.

(a) a sum of one thousand rupees, if the total income of such person does not exceed five lakh rupees;

(b) a sum of five thousand rupees, in any other case.”.

Amendment 13. In section 245MA of the Income-tax Act, in sub-section (2), for the of section words “waive any penalty imposable”, the words “waive any penalty imposed 245MA. or imposable” shall be substituted and shall be deemed to have been substituted with effect from the 1st day of March, 2026.

Amendment 14. In section 270A of the Income-tax Act, after sub-section (11), the of section following sub-section shall be inserted and shall be deemed to have been 270A. inserted with effect from the 1st day of March, 2026, namely:–– “(11A) Where additional income-tax is paid in accordance with sub-

section (3A) of section 140B, the income on which such additional income-tax is paid shall not form the basis of imposition of penalty under this section.”.46 47 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 47 the time limit of assessment, reassessment or recomputation referred to Amendment 15. In section 270AA of the Income-tax Act, for sub-sections (1) to (3), in this section.”. of section the following sub-sections shall be substituted and shall be deemed to have 270AA.

been substituted with effect from the 1st day of March, 2026, namely:–– Amendment 11. In section 220 of the Income-tax Act, 1961, in sub-section (2), after of section the third proviso, the following proviso shall be inserted and shall be deemed

220. “(1) An assessee may make an application to the Assessing Officer to to have been inserted with effect from the 1st day of March, 2026, namely:– grant immunity from imposition or, as the case may be, waiver of penalty – under section 270A and immunity from initiation of proceedings under “Provided also that no interest shall be charged under this sub-section

section 276C or section 276CC, if he fulfils the following conditions, in respect of any demand raised on account of penalty levied under section

namely: — 270A––

(a) the tax and interest payable as per the order of assessment

(a) up to the date of passing of the order under section 250; under sub-section (3) of section 143 or reassessment under section 147 has been paid within the period specified in the notice of demand;

(b) up to the date of passing of the order under section 254, where the assessment or reassessment has been made in pursuance to directions

(b) where penalty has been levied or, as the case may be, leviable issued by the Dispute Resolution Panel under section 144C.”. under the circumstances referred to in sub-section (9) of section 270A, additional income-tax amounting to one hundred per cent. of the Insertion of 12. After section 234H of the Income-tax Act, the following section shall amount of tax payable on under-reported income has been paid within new section be inserted and shall be deemed to have been inserted, with effect from the 234-I. the period specified in the notice of demand, in lieu of such penalty;

1st day of March, 2026, namely:–– and Fee for “234-I. Without prejudice to the provisions of this Act, where any

(c) no appeal has been filed against the order referred to in clauses furnishing person furnishes a return of income under sub-section (5) of section 139, revised (a) and (b). beyond nine months but before twelve months from the end of the relevant return of assessment year, he shall pay by way of a fee,–– income.

(2) An application referred to in sub-section (1) shall be made within one month from the end of the month in which the order referred to in clause (a) and clause (b) of the said sub-section has been received by the

(a) a sum of one thousand rupees, if the total income of such person assessee, in such form and verified in such manner, as may be prescribed. does not exceed five lakh rupees;

(3) The Assessing Officer shall, on fulfilment of the conditions

(b) a sum of five thousand rupees, in any other case.”. specified in sub-section (1) and after the expiry of the period of filing the appeal as specified in clause (b) of sub-section (2) of section 249, grant Amendment 13. In section 245MA of the Income-tax Act, in sub-section (2), for the immunity from imposition or, as the case may be, waiver of penalty under of section words “waive any penalty imposable”, the words “waive any penalty imposed 245MA. section 270A and initiation of proceedings under section 276C or section or imposable” shall be substituted and shall be deemed to have been 276CC.

substituted with effect from the 1st day of March, 2026.

(3A) No immunity or, as the case may be, waiver under sub-section Amendment 14. In section 270A of the Income-tax Act, after sub-section (11), the (3) shall be granted where any proceedings has been initiated under of section following sub-section shall be inserted and shall be deemed to have been Chapter XXII.”.

270A. inserted with effect from the 1st day of March, 2026, namely:–– Amendment 16. In section 274 of the Income-tax Act, with effect from the 1st day of “(11A) Where additional income-tax is paid in accordance with sub- of section March, 2026,––

274.

section (3A) of section 140B, the income on which such additional income-tax is paid shall not form the basis of imposition of penalty under (a) in sub-section (1), after the words “a reasonable opportunity of this section.”. being heard”, the words “by way of a show cause notice to that effect” shall be inserted and shall be deemed to have been inserted;48 48 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—

(b) after sub-section (3), the following sub-sections shall be inserted and shall be deemed to have been inserted, namely:–– “(4) Notwithstanding anything contained in any other provision of this Act, where any draft of the proposed order of assessment under

section 144C or assessment under section 143 or reassessment under

section 147 is made on or after 1st of April, 2027 in respect of the assessment year 2026-2027 or any earlier assessment year,––

(a) the penalty under section 270A, if any, shall constitute part of such draft assessment or shall be imposed as a part of such order of assessment or reassessment, as the case may be; and

(b) the reference to the assessment order or the penalty order under section 270A in any of the provisions of this Act shall take reference to such order of assessment or reassessment, as the case may be.

(5) Where the approval of the Joint Commissioner is taken for passing of an order of assessment or reassessment on or after the 1st April, 2027, such approval shall also be deemed to be the approval for the imposition of penalty under section 270A, if any, constituting part of such order of assessment or reassessment.”.

Amendment 17. In section 275A of the Income-tax Act, with effect from the 1st day of section of March, 2026,–– 275A.

(a) for the marginal heading, the following marginal heading shall be substituted and shall be deemed to have been substituted, namely:–– “Contravention of order made during search action.”;

(b) for the words “rigorous imprisonment which may extend to two years and shall also be liable to fine”, the words “simple imprisonment for a term up to two years and with fine” shall be substituted and shall be deemed to have been substituted.

Amendment 18. In section 275B of the Income-tax Act, with effect from the 1st day of of section March, 2026,–– 275B.

(a) for the marginal heading, the following marginal heading shall be substituted and shall be deemed to have been substituted, namely:–– “Failure to afford facility for inspection of books of account during search.”;48 49 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 49

(b) after sub-section (3), the following sub-sections shall be inserted (b) for the words “rigorous imprisonment for a term which may extend and shall be deemed to have been inserted, namely:–– to two years and shall also be liable to fine”, the words “simple imprisonment for a term up to six months, or with fine, or with both” shall “(4) Notwithstanding anything contained in any other provision of be substituted and shall be deemed to have been substituted.

this Act, where any draft of the proposed order of assessment under

section 144C or assessment under section 143 or reassessment under Amendment 19. In section 276 of the Income-tax Act, for the words “rigorous

section 147 is made on or after 1st of April, 2027 in respect of the of section imprisonment for a term which may extend to two years and shall also be

276. assessment year 2026-2027 or any earlier assessment year,–– liable to fine”, the words “simple imprisonment for a term up to two years and with fine” shall be substituted and shall be deemed to have been

(a) the penalty under section 270A, if any, shall constitute part substituted with effect from the 1st day of March, 2026. of such draft assessment or shall be imposed as a part of such order of assessment or reassessment, as the case may be; and Substitution 20. For sections 276B, 276BB, 276C, 276CC, 276CCC and 276D of the of new Income-tax Act, the following sections shall be substituted and shall be sections for

(b) the reference to the assessment order or the penalty order deemed to have been substituted with effect from the 1st day of March, 2026, sections under section 270A in any of the provisions of this Act shall take namely:–– 276B, reference to such order of assessment or reassessment, as the case 276BB, may be. 276C, 276CC, 276CCC and

(5) Where the approval of the Joint Commissioner is taken for passing 276D. of an order of assessment or reassessment on or after the 1st April, 2027, such approval shall also be deemed to be the approval for the imposition of penalty under section 270A, if any, constituting part of such order of Failure to pay “276B. If a person fails to— assessment or reassessment.”. tax to credit of Central

(a) pay to the credit of the Central Government, the tax deducted at Government Amendment 17. In section 275A of the Income-tax Act, with effect from the 1st day source by him as required by or under the provisions of Chapter XVII- under of section of March, 2026,–– Chapter XII- B; or 275A.

D or XVII-B.

(a) for the marginal heading, the following marginal heading shall be

(b) pay tax or ensure payment of tax to the credit of the Central Government, as required by or under— substituted and shall be deemed to have been substituted, namely:––

(i) the proviso to sub-section (1) of section 194S in relation to “Contravention of order made during search action.”; consideration for transfer of virtual digital asset, excluding such consideration which is wholly in kind; or

(b) for the words “rigorous imprisonment which may extend to two years and shall also be liable to fine”, the words “simple imprisonment

(ii) sub-section (2) of section 194BA in relation to winnings, for a term up to two years and with fine” shall be substituted and shall be excluding such winnings which are wholly in kind, deemed to have been substituted.

he shall be punishable–– Amendment 18. In section 275B of the Income-tax Act, with effect from the 1st day of of section March, 2026,––

(i) with simple imprisonment for a term up to two years, or with fine, 275B. or with both, where the amount of such tax exceeds fifty lakh rupees; or

(a) for the marginal heading, the following marginal heading shall be substituted and shall be deemed to have been substituted, namely:––

(ii) with simple imprisonment for a term up to six months, or with fine, or with both, where the amount of such tax exceeds ten lakh rupees “Failure to afford facility for inspection of books of account but does not exceed fifty lakh rupees; or during search.”;

(iii) with fine, in any other case:50 50 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—

Provided that the provisions of this section shall not apply, if the payment referred to in clause (a) has been made to the credit of the Central Government at any time on or before the time prescribed for filing the statement for such payment under sub-section (3) of section

200.

Failure to 276BB. If a person fails to pay to the credit of the Central pay tax Government, the tax collected by him as required under the provisions of collected at

section 206C, he shall be punishable–– source.

(a) with simple imprisonment for a term up to two years, or with fine, or with both, where the amount of such tax exceeds fifty lakh rupees; or

(b) with simple imprisonment for a term up to six months, or with fine, or with both, where the amount of such tax exceeds ten lakh rupees but does not exceed fifty lakh rupees; or

Provided that the provisions of this section shall not apply if the payment of the tax collected at source has been made to the credit of the Central Government at any time on or before the time prescribed for filing the statement under the proviso to sub-section (3) of section 206C in respect of such payment.

Wilful 276C. (1) If a person wilfully attempts in any manner to evade any attempt to tax, penalty or interest chargeable or imposable, or under-reports his evade tax, income, under this Act, he shall, without prejudice to any penalty that may etc.

be imposable on him under any other provision of this Act, be punishable —

(a) with simple imprisonment for a term up to two years, or with fine, or with both, where the amount sought to be evaded or tax on under-reported income exceeds fifty lakh rupees; or

(b) with simple imprisonment for a term up to six months, or with fine, or with both, where the amount sought to be evaded or tax on under-reported income exceeds ten lakh rupees but does not exceed fifty lakh rupees; or

(2) If a person wilfully attempts in any manner to evade the payment of any tax, penalty or interest under this Act, he shall, without prejudice50 51 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 51 to any penalty that may be imposable on him under any other provision

Provided that the provisions of this section shall not apply, if the of this Act, be punishable — payment referred to in clause (a) has been made to the credit of the Central Government at any time on or before the time prescribed for

(a) with simple imprisonment for a term up to two years, or with filing the statement for such payment under sub-section (3) of section fine, or with both, where the amount sought to be evaded exceeds fifty

200. lakh rupees; or Failure to 276BB. If a person fails to pay to the credit of the Central pay tax Government, the tax collected by him as required under the provisions of (b) with simple imprisonment for a term up to six months, or with collected at fine, or with both, where the amount sought to be evaded exceeds ten

section 206C, he shall be punishable–– source. lakh rupees but does not exceed fifty lakh rupees; or

(a) with simple imprisonment for a term up to two years, or with

Explanation.—For the purposes of this section, a wilful attempt to evade any tax, penalty or interest chargeable or imposable under this Act

(b) with simple imprisonment for a term up to six months, or with or the payment thereof shall include a case where any person— fine, or with both, where the amount of such tax exceeds ten lakh rupees but does not exceed fifty lakh rupees; or

(a) has in his possession or control any books of account or other documents (being books of account or other documents relevant to any

Provided that the provisions of this section shall not apply if the

(b) makes or causes to be made any false entry or statement in such payment of the tax collected at source has been made to the credit of the books of account or other documents; or Central Government at any time on or before the time prescribed for filing the statement under the proviso to sub-section (3) of section 206C

(c) wilfully omits or causes to be omitted any relevant entry or in respect of such payment. statement in such books of account or other documents; or Wilful 276C. (1) If a person wilfully attempts in any manner to evade any attempt to tax, penalty or interest chargeable or imposable, or under-reports his (d) causes any other circumstance to exist which shall have the evade tax, effect of enabling such person to evade any tax, penalty or interest income, under this Act, he shall, without prejudice to any penalty that may etc. chargeable or imposable under this Act or the payment thereof.

be imposable on him under any other provision of this Act, be punishable — Failure to 276CC. If a person wilfully fails to furnish in due time the return of furnish fringe benefits, which he is required to furnish under sub-section (1) of

(a) with simple imprisonment for a term up to two years, or with returns of

section 115WD, or by notice given under sub-section (2) of the said fine, or with both, where the amount sought to be evaded or tax on income.

section or section 115WH, or the return of income which he is required under-reported income exceeds fifty lakh rupees; or to furnish under sub-section (1) of section 139, or by notice given under clause (i) of sub-section (1) of section 142, or section 148, or section

(b) with simple imprisonment for a term up to six months, or with 153A, he shall be punishable — fine, or with both, where the amount sought to be evaded or tax on under-reported income exceeds ten lakh rupees but does not exceed

(a) with simple imprisonment for a term up to two years, or with fifty lakh rupees; or fine, or with both, where the amount of tax, which would have been evaded if the failure had not been discovered, exceeds fifty lakh rupees;

(2) If a person wilfully attempts in any manner to evade the payment

(b) with simple imprisonment for a term up to six months, or with of any tax, penalty or interest under this Act, he shall, without prejudice fine, or with both, where the amount of tax, which would have been52 52 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— evaded if the failure had not been discovered, exceeds ten lakh rupees but does not exceed fifty lakh rupees; or

Provided that a person shall not be proceeded against under this

section for failure to furnish in due time the return of fringe benefits under sub-section (1) of section 115WD or return of income under sub-

section (1) of section 139—

(i) for any assessment year commencing prior to the 1st day of April, 1975; or

(ii) for any assessment year commencing on or after the 1st day of April, 1975, if—

(a) the return is furnished by him before the expiry of the assessment year or a return is furnished by him under sub-section

(8A) of section 139 within the time provided in that sub-section; or

(b) the tax payable by such person, not being a company, on the total income determined on regular assessment, as reduced by the advance tax or self-assessment tax, if any, paid before the expiry of the assessment year, and any tax deducted or collected at source, does not exceed ten thousand rupees.

Failure to 276CCC. If a person wilfully fails to furnish in due time the return of furnish income, setting forth his undisclosed income for the block period, which return of he is required to furnish by notice given under clause (a) of sub-section income in

(1) of section 158BC, he shall be punishable — search cases.

(a) with simple imprisonment for a term up to two years, or with fine, or with both, where the amount of tax exceeds fifty lakh rupees; or

(b) with simple imprisonment up to six months, or with fine, or with both, where the amount of tax exceeds ten lakh rupees but does not exceed fifty lakh rupees; or

Provided that no person shall be punishable for any failure under this section in respect of search initiated under section 132 or books of account, other documents or any assets requisitioned under section 132A, after the 30th day of June, 1995 but before the 1st day of January,

1997.52 53 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 53 evaded if the failure had not been discovered, exceeds ten lakh rupees Failure to 276D. If a person wilfully fails to comply with a direction issued to but does not exceed fifty lakh rupees; or comply with him under sub-section (2A) of section 142, he shall be punishable with a direction of simple imprisonment for a term up to six months, or with fine, or with special audit

Provided that a person shall not be proceeded against under this Amendment 21. In section 277 of the Income-tax Act, for clauses (i) and (ii), the

section for failure to furnish in due time the return of fringe benefits of section following clauses shall be substituted and shall be deemed to have been

277. under sub-section (1) of section 115WD or return of income under sub- substituted with effect from the 1st day of March, 2026, namely:––

section (1) of section 139— “(a) with simple imprisonment for a term up to two years, or with fine,

(i) for any assessment year commencing prior to the 1st day of or with both, where the amount of tax, which would have been evaded if April, 1975; or the statement or account had been accepted as true, exceeds fifty lakh rupees; or

(ii) for any assessment year commencing on or after the 1st day of April, 1975, if— (b) with simple imprisonment for a term up to six months, or with fine, or with both, where the amount of tax, which would have been evaded if

(a) the return is furnished by him before the expiry of the the statement or account had been accepted as true, exceeds ten lakh assessment year or a return is furnished by him under sub-section rupees but does not exceed fifty lakh rupees; or

(8A) of section 139 within the time provided in that sub-section; or

(b) the tax payable by such person, not being a company, on the total income determined on regular assessment, as reduced by the Amendment 22. In section 277A of the Income-tax Act, for the words “rigorous advance tax or self-assessment tax, if any, paid before the expiry of of section imprisonment for a term which shall not be less than three months but which 277A.

the assessment year, and any tax deducted or collected at source, may extend to two years and with fine”, the words “simple imprisonment for does not exceed ten thousand rupees. a term up to two years and with fine” shall be substituted and shall be deemed to have been substituted with effect from the 1st day of March, 2026.

Failure to 276CCC. If a person wilfully fails to furnish in due time the return of furnish income, setting forth his undisclosed income for the block period, which Amendment 23. In section 278 of the Income-tax Act, for clauses (i) and (ii), the return of he is required to furnish by notice given under clause (a) of sub-section of section following clauses shall be substituted and shall be deemed to have been income in 278.

(1) of section 158BC, he shall be punishable — substituted with effect from the 1st day of March, 2026, namely:–– search cases.

(a) with simple imprisonment for a term up to two years, or with “(i) with simple imprisonment for a term up to two years, or with fine, fine, or with both, where the amount of tax exceeds fifty lakh rupees; or or with both, where the amount of tax, penalty or interest which would have been evaded, if the declaration, account or statement had been accepted as

(b) with simple imprisonment up to six months, or with fine, or with true, or which is wilfully attempted to be evaded, exceeds fifty lakh rupees; both, where the amount of tax exceeds ten lakh rupees but does not or exceed fifty lakh rupees; or

(ii) with simple imprisonment for a term up to six months, or with fine,

(c) with fine, in any other case: or with both, where the amount of tax, penalty or interest which would have been evaded, if the declaration, account or statement had been accepted as true, or which is wilfully attempted to be evaded, exceeds ten lakh rupees but

Provided that no person shall be punishable for any failure under does not exceed fifty lakh rupees; or this section in respect of search initiated under section 132 or books of account, other documents or any assets requisitioned under section

(iii) with fine, in any other case.”.

132A, after the 30th day of June, 1995 but before the 1st day of January,

1997.54 54 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— Amendment 24. In section 278A of the Income-tax Act, with effect from the 1st day of section of March, 2026,–– 278A.

(a) for the word “rigorous”, the word “simple” shall be substituted and shall be deemed to have been substituted;

(b) for the word “seven”, the word “three” shall be substituted and shall be deemed to have been substituted.

Amendment 25. In section 280 of the Income-tax Act, in sub-section (1), for the words of section “imprisonment which may extend to six months, and shall also be liable to

280. fine”, the words “simple imprisonment up to one month, or with fine, or with both” shall be substituted and shall be deemed to have been substituted with effect from the 1st day of March, 2026.

Insertion of 26. After section 292B of the Income-tax Act, the following section shall new section be inserted, namely:–– 292BA.

Assessments “292BA. Notwithstanding anything contained in any judgment, order not to be or decree of any court, for the removal of doubts, it is hereby clarified for invalid on the purposes of section 292B that no assessment under any of the certain provisions of this Act shall be invalid or shall be deemed to have been grounds.

invalid on the ground of any mistake, defect or omission in respect of quoting of a computer generated Document Identification Number, if the assessment order is referenced by such number in any manner.”.

B.–– Income-tax under the Income-tax Act, 2025 Amendment 27. In section 2 of the Income-tax Act, 2025 (hereafter in this Part referred 30 of 2025. of section 2. to as the Income-tax Act),––

(a) for clause (32), the following clause shall be substituted, namely:–– ‘(32) “co-operative society” means a co-operative society registered under the Co-operative Societies Act, 1912, or the Multi-State Co- 2 of 1912.

39 of 2002. operative Societies Act, 2002, or under any other law in force in any State or Union territory for the registration of co-operative societies;’;

(b) in clause (40),––

(A) sub-clause (f) shall be omitted;

(B) in the first long line below sub-clause (f) as so omitted, for sub- clause (v), the following sub-clause shall be substituted, namely:––54 55 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 55 Amendment 24. In section 278A of the Income-tax Act, with effect from the 1st day ‘(v) any advance or loan between two group entities, where,–– of section of March, 2026,–– 278A.

(A) one of the group entities is a “Finance Company” or a

(a) for the word “rigorous”, the word “simple” shall be substituted and “Finance Unit”; shall be deemed to have been substituted;

(B) the other group entity to the transaction is located in a

(b) for the word “seven”, the word “three” shall be substituted and country or territory outside India; and shall be deemed to have been substituted.

Amendment 25. In section 280 of the Income-tax Act, in sub-section (1), for the words

(C) the parent entity or the principal entity of such group is of section “imprisonment which may extend to six months, and shall also be liable to listed on the stock exchange in a country or territory outside India,

280. fine”, the words “simple imprisonment up to one month, or with fine, or with both” shall be substituted and shall be deemed to have been substituted with for the purposes of items (B) and (C), the country or territory effect from the 1st day of March, 2026.

outside India shall be specified by the Central Government, by

notification,’;

Insertion of 26. After section 292B of the Income-tax Act, the following section shall new section be inserted, namely:–– 292BA.

(b) in the second long line below sub-clause (v), in sub-clause (E), for item (II), the following items shall be substituted, namely:–– Assessments “292BA. Notwithstanding anything contained in any judgment, order not to be or decree of any court, for the removal of doubts, it is hereby clarified for invalid on the purposes of section 292B that no assessment under any of the ‘(II) “group entity” shall have the same meaning as assigned to the certain grounds. provisions of this Act shall be invalid or shall be deemed to have been expression “group entities” in clause (m) of sub-regulation (1) of invalid on the ground of any mistake, defect or omission in respect of regulation 2 of the International Financial Services Authority quoting of a computer generated Document Identification Number, if the (Payment Services) Regulations, 2024 made under the International 50 of 2019.

assessment order is referenced by such number in any manner.”. Financial Services Centres Authority Act, 2019;

B.–– Income-tax under the Income-tax Act, 2025 (III) “parent entity” or “principal entity” in relation to one or more other group entities, shall be an entity of which other group entities Amendment 27. In section 2 of the Income-tax Act, 2025 (hereafter in this Part referred 30 of 2025. are subsidiary and such entity,– of section 2. to as the Income-tax Act),––

(a) exercises or controls more than one-half of the total voting

(a) for clause (32), the following clause shall be substituted, namely:–– power either at its own or together with one or more of its subsidiaries; or ‘(32) “co-operative society” means a co-operative society registered under the Co-operative Societies Act, 1912, or the Multi-State Co- 2 of 1912. (b) controls the composition of the Board of Directors;’.

39 of 2002. operative Societies Act, 2002, or under any other law in force in any State or Union territory for the registration of co-operative societies;’;

Amendment 28. In section 7 of the Income-tax Act, in sub-section (2), in clause (a), of section 7. for the brackets and letter “(f)”, the brackets and letter “(e)” shall be

(b) in clause (40),–– substituted.

(A) sub-clause (f) shall be omitted;

Amendment 29. In section 21 of the Income-tax Act, in sub-section (5), for the words of section “nil for”, the word “nil up to” shall be substituted.

(B) in the first long line below sub-clause (f) as so omitted, for sub-

21. clause (v), the following sub-clause shall be substituted, namely:––56 56 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— Amendment 30. In section 22 of the Income-tax Act, in sub-section (2), for the word, of section brackets, figure and letter “sub-section (1)(b)”, the words, brackets, figure

22. and letters “sub-section (1)(b) and (c)” shall be substituted.

Amendment 31. In section 29 of the Income-tax Act, in sub-section (1), for clause (e), of section the following clause shall be substituted, namely:—

29. “(e) the amount of contribution received from an employee to which the provisions of section 2(49)(o) apply, if it is credited by the assessee to the account of the employee in the relevant fund or funds, on or before the due date of filing of return of income under section 263(1) for the tax year.”.

Amendment 32. In section 58 of the Act, in sub-section (11), in clause (a), sub-clause of section (i) shall be omitted.

58.

Amendment 33. In section 66 of the Income-tax Act, for clause (4), the following of section clause shall be substituted, namely:—

66. ‘(4) “commodities transactions tax” and “commodity derivative” shall have the same meanings as respectively assigned to them in Chapter VII 17 of 2013. of the Finance Act, 2013;’.

Amendment 34. In section 69 of the Income-tax Act, for sub-sections (2) and (3), the of section following sub-sections shall be substituted, namely:–

69. ‘(2) In respect of capital gains referred to in sub-section (1), where the shareholder or holder of other specified securities is a promoter, the aggregate income-tax payable on such capital gains shall be––

(a) the income-tax payable on such capital gains in accordance with the provisions of this Act; and

(b) an additional income tax in respect of capital gains specified in column B of the Table below, computed at the rate specified in column C or column D of the said Table.

TABLE Sl. Income Rate, where Rate, where No. the promoter the promoter is a domestic is other than company a domestic company57 56 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 57 Amendment 30. In section 22 of the Income-tax Act, in sub-section (2), for the word, A B C D of section brackets, figure and letter “sub-section (1)(b)”, the words, brackets, figure

1. Short-term capital gains referred 2% 10%

22. and letters “sub-section (1)(b) and (c)” shall be substituted. to in section 196 arising from the transfer of such securities.

2. Long-term capital gains referred 9.5% 17.5% Amendment 31. In section 29 of the Income-tax Act, in sub-section (1), for clause (e), to in section 197 or section 198 of section the following clause shall be substituted, namely:— arising from the transfer of such

29. securities. “(e) the amount of contribution received from an employee to which the provisions of section 2(49)(o) apply, if it is credited by the assessee to the account of the employee in the relevant fund or funds, on or before

(3) For the purposes of this section,— the due date of filing of return of income under section 263(1) for the tax year.”.

(a) in the case of a company whose shares are listed on a recognised stock exchange in India, ‘promoter’ shall have the same Amendment 32. In section 58 of the Act, in sub-section (11), in clause (a), sub-clause meaning as assigned to it in regulation 2(k) of the Securities and of section (i) shall be omitted.

Exchange Board of India (Buy-Back of Securities) Regulations, 2018

58. made under the Securities and Exchange Board of India Act, 1992; 15 of 1992.

Amendment 33. In section 66 of the Income-tax Act, for clause (4), the following of section clause shall be substituted, namely:— (b) in any other case, “promoter” means,––

66. ‘(4) “commodities transactions tax” and “commodity derivative” shall

(i) a “promoter” as defined in section 2(69) of the Companies have the same meanings as respectively assigned to them in Chapter VII 17 of 2013. Act, 2013; or 18 of 2013. of the Finance Act, 2013;’.

(ii) a person who holds, directly or indirectly, more than 10% Amendment 34. In section 69 of the Income-tax Act, for sub-sections (2) and (3), the of the shareholding in the company; of section following sub-sections shall be substituted, namely:–

69.

(c) “specified securities” shall have the same meaning as assigned ‘(2) In respect of capital gains referred to in sub-section (1), where the to it in Explanation 1 to section 68 of the Companies Act, 2013.’. 18 of 2013.

shareholder or holder of other specified securities is a promoter, the aggregate income-tax payable on such capital gains shall be–– Amendment 35. In section 70 of the Income-tax Act, in sub-section (1), for clause (x), of section the following clause shall be substituted, namely:––

70.

(a) the income-tax payable on such capital gains in accordance with the provisions of this Act; and “(x) by way of redemption, of Sovereign Gold Bond issued by the Reserve Bank of India under the Sovereign Gold Bond Scheme, 2015 or

(b) an additional income tax in respect of capital gains specified in any subsequent Sovereign Gold Bond Scheme, if held by an individual from column B of the Table below, computed at the rate specified in column the date of original issue till maturity;”.

C or column D of the said Table.

Amendment 36. In section 93 of the Income-tax Act,–– of section

93.

TABLE

(a) in sub-section (1), for clause (a), the following clause shall be substituted, namely:–– Sl. Income Rate, where Rate, where No. the promoter the promoter “(a) for interest on securities, any reasonable sum paid as is a domestic is other than commission or remuneration to a banker or any other person for the company a domestic purpose of realising such interest on behalf of the assessee;”;

company58 58 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—

(b) for sub-section (2), the following sub-section shall be substituted,

namely:–– “(2) Irrespective of anything contained in sub-section (1), in respect of any dividend income or income from units of a Mutual Fund specified under Schedule VII (Table: Sl. No. 20 or 21) or income from units of a specified company as referred to in section 2(h) of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002, no 58 of 2002.

deduction shall be allowed.”.

Amendment 37. In section 99 of the Income-tax Act, in sub-section (2), for the words, of section brackets, figures and letters “sub-section (1)(a)(i) or (b)”, the words, brackets,

99. figures and letters “sub-section (1)(a)(ii) or (b)” shall be substituted.

Amendment 38. In section 147 of the Income-tax Act,–– of section

147. (a) for sub-section (2), the following sub-section shall be substituted,

namely:–– “(2) Irrespective of anything contained in section 80LA of the Income- tax Act, 1961, the deduction shall be allowed–– 43 of 1961.

(a) for twenty consecutive tax years beginning from the relevant tax year in the case of an entity mentioned in sub-section (1)(a);

(b) for twenty consecutive tax years out of twenty-five years beginning from the relevant tax year, at the option of an assessee, in the case of an entity mentioned in sub-section (1)(b).”;

(b) for sub-section (5), the following sub-sections shall be substituted,

namely:–– ‘(5) In respect of any Offshore Banking Unit or any other unit referred in sub-section (1), commencing operations on or after the 1st April, 2026, the deduction under sub-section (1) shall be available only if such unit is not formed by splitting up or reconstruction or reorganisation or transfer of a business already in existence in India;

(6) For the purposes of this section,—

(a) “relevant tax year” shall be,—

(i) in case of an entity referred to in sub-section (1)(a), the tax year in which permission under section 23(1)(a) of the Banking Regulation Act, 10 of 1949.

1949, or permission or registration under the Securities and Exchange Board 15 of 1992. of India Act, 1992 or any other relevant law in force was obtained; or

(ii) in case of an entity referred to in sub-section (1)(b), the tax year in which permission under section 23(1)(a) of the Banking Regulation Act, 1949, or permission or registration under the Securities and Exchange Board 10 of 1949.

15 of 1992.58 59 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 59 of India Act, 1992, or permission or registration under the International 50 of 2019.

(b) for sub-section (2), the following sub-section shall be substituted, Financial Services Centres Authority Act, 2019 was obtained;

namely:––

(b) “Unit” shall have the same meaning as assigned to it in section 2(zc) “(2) Irrespective of anything contained in sub-section (1), in respect of the Special Economic Zones Act, 2005;

28 of 2005. of any dividend income or income from units of a Mutual Fund

(c) “aircraft” and “ship” shall have the meanings respectively assigned specified under Schedule VII (Table: Sl. No. 20 or 21) or income from to them in Schedule VI (Note 3).’. units of a specified company as referred to in section 2(h) of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002, no 58 of 2002.

deduction shall be allowed.”.

Amendment 39. In section 149 of the Income-tax Act,–– of section Amendment 37. In section 99 of the Income-tax Act, in sub-section (2), for the words, 149. of section brackets, figures and letters “sub-section (1)(a)(i) or (b)”, the words, brackets, (a) in sub-section (2),––

99. figures and letters “sub-section (1)(a)(ii) or (b)” shall be substituted.

(i) in clause (b), after the word “oilseeds,” wherever it occurs, the words “cotton seed, cattle feed,” shall be inserted;

Amendment 38. In section 147 of the Income-tax Act,–– of section

147. (a) for sub-section (2), the following sub-section shall be substituted, (ii) for clause (d), the following clause shall be substituted, namely:–

namely:–– “(2) Irrespective of anything contained in section 80LA of the Income- “(d) in respect of any income derived by the co-operative society tax Act, 1961, the deduction shall be allowed–– 43 of 1961. from its investments with any other co-operative society by way of–

(a) for twenty consecutive tax years beginning from the relevant tax

(i) interest; or year in the case of an entity mentioned in sub-section (1)(a);

(b) for twenty consecutive tax years out of twenty-five years (ii) dividends, beginning from the relevant tax year, at the option of an assessee, in the case of an entity mentioned in sub-section (1)(b).”; the whole of such income;”;

(b) for sub-section (5), the following sub-sections shall be substituted,

(b) after sub-section (5), the following sub-section shall be inserted,

namely:––

namely:–– ‘(5) In respect of any Offshore Banking Unit or any other unit referred in sub-section (1), commencing operations on or after the 1st April, 2026, the ‘(6) For the purposes of this section,–– deduction under sub-section (1) shall be available only if such unit is not formed by splitting up or reconstruction or reorganisation or transfer of a (a) “consumers’ co-operative society” means a society for the business already in existence in India; benefit of the consumers;

(6) For the purposes of this section,—

(b) “primary agricultural credit society” has the same meaning

(a) “relevant tax year” shall be,— as assigned to it in Part V of the Banking Regulation Act, 1949; and 10 of 1949.

(i) in case of an entity referred to in sub-section (1)(a), the tax year in which permission under section 23(1)(a) of the Banking Regulation Act, 10 of 1949. (c) “primary co-operative agricultural and rural development 1949, or permission or registration under the Securities and Exchange Board bank” means a society having an area of operation confined to a 15 of 1992.

of India Act, 1992 or any other relevant law in force was obtained; or taluk, the principal object of which is to provide long-term credit for agricultural and rural development activities.’.

(ii) in case of an entity referred to in sub-section (1)(b), the tax year in which permission under section 23(1)(a) of the Banking Regulation Act, Substitution 40. For section 150 of the Income-tax Act, the following section shall be 1949, or permission or registration under the Securities and Exchange Board 10 of 1949. of new substituted, namely:–– 15 of 1992. section for

section 150.60 60 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— Deduction in ‘150. (1) If the gross total income of an assessee being a federal co- respect of operative, in any tax year, includes any income by way of dividends income of received from its investment with any company, a deduction shall be federal co- allowed from such income, to the extent of the amount which,–– operative.

(a) has arisen from such investment as recorded in its books of account on or before the 31st January, 2026; and

(b) has been distributed by it to its members at least one month before the due date for filing the return of income under section 263(1).

(2) The provisions of this section shall not apply to any tax year beginning on or after the 1st April, 2029.

(3) For the purposes of this section, “federal co-operative” means a “federal co-operative” as defined in section 3(k) of the Multi-State Co- 39 of 2002. operative Societies Act, 2002 and notified as such by the Central Government.’.

Amendment 41. In section 162 of the Income-tax Act, in sub-section (2), for clause of section (c), the following clause shall be substituted, namely:—

162. “(c) other units, undertakings, enterprises or business of such assessee, or other person referred to in section 140(13) in respect of transactions referred to in Chapter VIII, to which the provisions of section 140(9) or (13) of this Act or section 80-IA(8) or (10) of the Income-tax 43 of 1961.

Act, 1961 are applicable.”.

Amendment 42. In section 164 of the Income-tax Act, in clause (d), the words and of section figures “or section 144” shall be omitted.

164.

Amendment 43. In section 165 of the Income-tax Act, 2025, in sub-section (7), the of section words and figures “under section 144 or” shall be omitted.

165.

Amendment 44. In section 166 of the Income-tax Act, for sub-section (7), the of section following sub-section shall be substituted, namely:––

166. “(7) Where a reference was made under sub-section (1), an order under sub-section (6) may be made at any time before one month prior to the month in which period of limitation referred to in section 286 or 296, for making the order of assessment or reassessment or recomputation or fresh assessment, expires and accordingly, where such period expires on––60 61 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 61

(a) the 31st March of any year, the order under sub-section (6) shall be Deduction in ‘150. (1) If the gross total income of an assessee being a federal co- made on or before the 31st January of that year;

respect of operative, in any tax year, includes any income by way of dividends income of received from its investment with any company, a deduction shall be federal co- allowed from such income, to the extent of the amount which,–– (b) the 31st December of any year, the order under sub-section (6) shall operative.

be made on or before the 31st October of that year.”.

(a) has arisen from such investment as recorded in its books of account on or before the 31st January, 2026; and Amendment 45. In section 169 of the Income-tax Act, for sub-section (1), the of section following sub-section shall be substituted, namely:––

(b) has been distributed by it to its members at least one month 169. before the due date for filing the return of income under section 263(1). “(1) Irrespective of anything to the contrary contained in section 263, where an income is modified as a result of advance pricing agreement

(2) The provisions of this section shall not apply to any tax year entered into with any person then, such person shall, or any other person beginning on or after the 1st April, 2029. being an associated enterprise may,–

(3) For the purposes of this section, “federal co-operative” means a

(a) furnish a return or a modified return in accordance with and “federal co-operative” as defined in section 3(k) of the Multi-State Co- limited to the agreement; and 39 of 2002. operative Societies Act, 2002 and notified as such by the Central Government.’.

(b) the time period for furnishing such return or modified return shall be three months from the end of the month in which the agreement Amendment 41. In section 162 of the Income-tax Act, in sub-section (2), for clause was entered into, of section (c), the following clause shall be substituted, namely:—

162. where the tax years relevant for such return or modified return shall be “(c) other units, undertakings, enterprises or business of such the years covered by such agreement.”. assessee, or other person referred to in section 140(13) in respect of transactions referred to in Chapter VIII, to which the provisions of section Amendment 46. In section 195 of the Income-tax Act, in sub-section (1), in the 140(9) or (13) of this Act or section 80-IA(8) or (10) of the Income-tax of section longline, in clause (i), for the figures and symbol “60%”, the figures and 43 of 1961.

195.

Act, 1961 are applicable.”. symbol “30%” shall be substituted.

Amendment 47. In section 202 of the Income-tax Act, in sub-section (2), in clause (a), Amendment 42. In section 164 of the Income-tax Act, in clause (d), the words and of section figures “or section 144” shall be omitted. of section sub-clause (iii) shall be omitted.

202.

164.

Amendment 48. In section 203 of the Income-tax Act,–– Amendment 43. In section 165 of the Income-tax Act, 2025, in sub-section (7), the of section of section words and figures “under section 144 or” shall be omitted.

203.

165.

(a) in sub-section (1), in clause (a), in sub-clause (i), after the word Amendment 44. In section 166 of the Income-tax Act, for sub-section (7), the and figures “section 146”, the word and figures “or 150” shall be inserted;

of section following sub-section shall be substituted, namely:––

166.

(b) after sub-section (6), the following sub-section shall be inserted, “(7) Where a reference was made under sub-section (1), an order under namely:–– sub-section (6) may be made at any time before one month prior to the month in which period of limitation referred to in section 286 or 296, for “(7) In case of an assessee, being a co-operative society, which making the order of assessment or reassessment or recomputation or fresh has exercised option under sub-section (5), the requirements assessment, expires and accordingly, where such period expires on–– contained in sub-section (1) shall be modified to the extent that the deduction under section 149(2)(d)(ii) shall be available to such assessee as does not exceed the amount of dividend distributed by it62 62 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— to its members at least one month before the due date for filing the return of income under section 263(1).”.

Amendment 49. In section 204 of the Income-tax Act,–– of section

204.

(a) in sub-section (3), in clause (a), in sub-clause (i), after the word and figures “section 146”, the word and figures “or 150” shall be inserted;

(b) after sub-section (4), the following sub-section shall be inserted,

namely:–– “(5) In case of an assessee, being a co-operative society, which has exercised option under sub-section (2), the requirements contained in sub-section (3) shall be modified to the extent that the deduction under

section 149(2)(d)(ii) shall be available to such assessee as does not exceed the amount of dividend distributed by it to its members at least one month before the due date for filing the return of income under

section 263(1).”.

Amendment 50. In section 206 of the Income-tax Act,–– of section

206.

(a) in sub-section (1),––

(i) in clause (b), in sub-clause (ii), for the figures and symbol “15%”, the figures and symbol “14%” shall be substituted;

(ii) in clause (i), for sub-clause (ii), following sub-clause shall be substituted, namely:–– “(ii) the assessee has not utilised the credit of tax paid under section 115JAA of the Income-tax Act, 1961, in any subsequent tax year ending 43 of 1961.

on or before the 31st March, 2026,”;

(iii) in clause (l), in sub-clause (iii), the brackets, words, letters and figures “(Table: Sl. Nos. 1, 3, 4 and 5)” shall be omitted;

(iv) clauses (m), (n), (o) and (p) shall be omitted;

(v) in clause (q), in the opening portion, for the word “section”, the word “sub-section” shall be substituted;

(vi) clause (r) shall be omitted;

(vii) in clause (s), for the words “which this section”, the words “which this sub-section” shall be substituted;63 62 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 63 to its members at least one month before the due date for filing the

(b) for sub-section (3), the following sub-sections shall be substituted, return of income under section 263(1).”.

namely:–– Amendment 49. In section 204 of the Income-tax Act,–– “(3) (a) The provisions of this sub-section shall be applicable only to of section an assessee, being a domestic company, that has exercised the option

204.

(a) in sub-section (3), in clause (a), in sub-clause (i), after the word under section 200(5) or section 201(2) for a tax year, beginning on or after the 1st April 2026. and figures “section 146”, the word and figures “or 150” shall be inserted;

(b) after sub-section (4), the following sub-section shall be inserted,

(b) Where any amount of credit, in respect of tax paid, was allowed to be carried forward to the assessee under the provisions of section 115JAA

namely:–– of the Income-tax Act, 1961, as on 31st March, 2026,–– 43 of 1961. “(5) In case of an assessee, being a co-operative society, which has

(i) such credit brought forward shall be allowed to be set off in exercised option under sub-section (2), the requirements contained in any tax year to the extent of 25% of the tax payable on the total income sub-section (3) shall be modified to the extent that the deduction under computed as per the other provisions of this Act for that tax year;

section 149(2)(d)(ii) shall be available to such assessee as does not exceed the amount of dividend distributed by it to its members at least

(ii) the remaining credit shall be carried forward to the subsequent one month before the due date for filing the return of income under tax year; and

section 263(1).”.

Amendment 50. In section 206 of the Income-tax Act,–– (iii) such carry forward or set off of tax credit shall not be allowed of section beyond the fifteenth tax year immediately succeeding the tax year in

206. which the tax credit first became allowable under section 115JAA of

(a) in sub-section (1),–– 43 of 1961. the Income-tax Act, 1961.

(i) in clause (b), in sub-clause (ii), for the figures and symbol “15%”,

(c) Where, as a result of any order passed under this Act, tax payable the figures and symbol “14%” shall be substituted; under this Act is decreased or increased, as the case may be, tax credit allowed to be set off under clause (b) shall also be decreased or increased,

(ii) in clause (i), for sub-clause (ii), following sub-clause shall be accordingly. substituted, namely:––

(d) In case of conversion of a private company or unlisted public “(ii) the assessee has not utilised the credit of tax paid under section company into a limited liability partnership under the Limited Liability 115JAA of the Income-tax Act, 1961, in any subsequent tax year ending 43 of 1961. Partnership Act, 2008, the provisions of clauses (a) and (b) shall not apply 6 of 2009.

on or before the 31st March, 2026,”; to the successor limited liability partnership.

(iii) in clause (l), in sub-clause (iii), the brackets, words, letters and

(4) (a) The provisions of this sub-section shall be applicable only to figures “(Table: Sl. Nos. 1, 3, 4 and 5)” shall be omitted; an assessee, being a foreign company.

(iv) clauses (m), (n), (o) and (p) shall be omitted;

(b) Where, any amount of credit in respect of tax paid was allowed to be carried forward to the assessee under the provisions of section 115JAA 43 of 1961.

(v) in clause (q), in the opening portion, for the word “section”, the of the Income-tax Act, 1961, as on 31st March, 2026,–– word “sub-section” shall be substituted;

(i) such tax credit shall be carried forward and set off in a tax year,

(vi) clause (r) shall be omitted; when tax payable on the total income computed as per the provisions of this Act exceeds the minimum alternate tax computed as per provisions

(vii) in clause (s), for the words “which this section”, the words of sub-section (1); “which this sub-section” shall be substituted;64 64 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—

(ii) such set off in respect of brought forward tax credit shall be allowed for any tax year to the extent of the difference between the tax liability on the total income computed as per the other provisions of this Act and the minimum alternate tax for that tax year; and

(iii) such carry forward or set off of tax credit shall not be allowed beyond the fifteenth tax year immediately succeeding the tax year in which the tax credit first became allowable under section 115JAA of 43 of 1961.

the Income-tax Act, 1961.

(c) Where, as a result of any order passed under this Act, tax payable under this Act is decreased or increased, as the case may be, tax credit allowed to be set off under clause (b) shall also be decreased or increased, accordingly.

(d) In case of conversion of a private company or unlisted public company into a limited liability partnership under the Limited Liability 6 of 2009.

Partnership Act, 2008, the provisions of clauses (a) and (b) shall not apply to the successor limited liability partnership.

(5) Save as otherwise provided in this section, all other provisions of this Act shall apply to every assessee mentioned in this section.”.

Substitution 51. For sections 217 and 218 of the Income-tax Act, the following of new sections shall be substituted, namely:–– sections for sections 217 and 218.

Application “217. (1) Where a non-resident Indian in any tax year,–– of benefits under (a) becomes assessable as a resident in India in respect of total income sections 212 in a subsequent year; and to 216.

(b) furnishes a declaration in writing to the Assessing Officer along with his return of income under section 263 for the tax year for which he is so assessable, to the effect that provisions of sections 212 to 216 shall continue to apply to him in relation to the investment income derived from any foreign exchange asset referred to in section 212(e) other than shares in an Indian company, then the provisions of sections 212 to 216 shall continue to apply in relation to such income for that tax year and every subsequent tax year until the transfer or conversion (otherwise than by transfer) of such assets into money.

(2) A non-resident Indian may choose not to be governed by the provisions of sections 212 to 216 for any tax year by declaring it in his return of income under section 263 for such tax year, and if he does so,—64 65 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 65

(ii) such set off in respect of brought forward tax credit shall be (a) the provisions of sections 212 to 216 shall not apply to him for that allowed for any tax year to the extent of the difference between the tax tax year; and liability on the total income computed as per the other provisions of this

(b) his total income for that tax year shall be computed and charged Act and the minimum alternate tax for that tax year; and to tax according to the other provisions of this Act.”.

(iii) such carry forward or set off of tax credit shall not be allowed beyond the fifteenth tax year immediately succeeding the tax year in Tax on 218. Where the total income of an assessee includes income of the nature which the tax credit first became allowable under section 115JAA of business referred to in section 147(3), the aggregate of income-tax payable by the 43 of 1961. income of the Income-tax Act, 1961. assessee shall be the aggregate of income-tax computed on the income Offshore Banking specified in column B of the Table below at the rate specified in the

(c) Where, as a result of any order passed under this Act, tax payable Units or corresponding entry in column C of the said Table: under this Act is decreased or increased, as the case may be, tax credit International TABLE Financial allowed to be set off under clause (b) shall also be decreased or increased, Services Sl.No Income Rate of income- accordingly.

Centre unit. tax payable

(d) In case of conversion of a private company or unlisted public A B C company into a limited liability partnership under the Limited Liability 6 of 2009.

1. Income referred to in section 15% Partnership Act, 2008, the provisions of clauses (a) and (b) shall not apply 147(3) to the successor limited liability partnership.

2. Total income as reduced by Rates in

(5) Save as otherwise provided in this section, all other provisions of income referred to in Sl. No. (1). force.”. this Act shall apply to every assessee mentioned in this section.”.

Substitution 51. For sections 217 and 218 of the Income-tax Act, the following Amendment 52. In section 227 of the Income-tax Act, — of new sections shall be substituted, namely:–– sections for of section

227. sections 217

(a) in sub-section (4), in clause (a), for the word “certificate”, the and 218. words “valid certificate” shall be substituted;

Application “217. (1) Where a non-resident Indian in any tax year,––

(b) in sub-section (9), in clause (b), in sub-clause (iii), for the word of benefits under (a) becomes assessable as a resident in India in respect of total income “certificate”, the words “certificate of registration” shall be substituted.

sections 212 in a subsequent year; and to 216.

Amendment 53. In section 228 of the Income-tax Act, in sub-section (3), in clause (b),

(b) furnishes a declaration in writing to the Assessing Officer along of section in sub-clause (ii), in item (A), after the words “passenger ships”, the words with his return of income under section 263 for the tax year for which he

228. “or inland vessels” shall be inserted. is so assessable, to the effect that provisions of sections 212 to 216 shall continue to apply to him in relation to the investment income derived from Amendment 54. In section 232 of the Income-tax Act,–– any foreign exchange asset referred to in section 212(e) other than shares of section in an Indian company, then the provisions of sections 212 to 216 shall

232. continue to apply in relation to such income for that tax year and every subsequent tax year until the transfer or conversion (otherwise than by (a) for sub-sections (12) and (13), the following sub-sections shall be transfer) of such assets into money. substituted, namely:––

(2) A non-resident Indian may choose not to be governed by the “(12) A tonnage tax company, after its option has been approved provisions of sections 212 to 216 for any tax year by declaring it in his return under section 231(4), shall comply with the minimum training of income under section 263 for such tax year, and if he does so,— requirement as per the guidelines issued by the Director-General of66 66 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— Shipping or the Inland Waterways Authority of India, as the case may be, and notified by the Central Government.

(13) The tonnage tax company shall be required to furnish a copy of the certificate issued by the Director-General of Shipping, or the designated authority, as appointed by the respective State Governments under the Inland Vessels Act, 2021, as the case may be, 24 of 2021.

along with the return of income under section 263 to the effect that such company has complied with the minimum training requirement as per the guidelines referred to in sub-section (12) for the tax year.”;

(b) in sub-section (17), after the words “Director-General of Shipping”, the words “or Inland Waterways Authority of India, as the case may be” shall be inserted.

Amendment 55. In section 235 of the Income-tax Act, after clause (f), the following of section clause shall be inserted, namely:—

235. ‘(fa) “Inland Waterways Authority of India” shall have the same meaning as assigned to it in section 3 of the Inland Waterways Authority of 82 of 1985.

India Act, 1985;’.

Amendment 56. In section 262 of the Income-tax Act, in sub-section (10), in clause of section (c), for the words “pertaining to business or profession”, the words

262. “pertaining to, business or profession, or other transactions,” shall be substituted.

Amendment 57. In section 263 of the Income-tax Act,–– of section

263.

(a) in sub-section (1), for clause (c), the following clause shall be substituted, namely:–– ‘(c) for the purposes of this section, “due date” in respect of the persons mentioned in column B of the Table below, subject to conditions as mentioned in column C of the said Table, shall be the due date of the financial year succeeding the relevant tax year as mentioned

in column D thereof:

TABLE Sl. Person Conditions Due date No.

A B C D

1. Assessee, including the partners Where the 30th of the firm or the spouse of such provisions of November.66 67 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 67 Shipping or the Inland Waterways Authority of India, as the case may partner (if section 10 applies to section 172 be, and notified by the Central Government. such spouse). apply.

2. (i) Company; Where the 31st October.

(13) The tonnage tax company shall be required to furnish a copy of the certificate issued by the Director-General of Shipping, or the provisions of

(ii) Assessee (other than a section 172 do designated authority, as appointed by the respective State company) whose accounts are not apply.

Governments under the Inland Vessels Act, 2021, as the case may be, 24 of 2021. required to be audited under this along with the return of income under section 263 to the effect that Act or under any other law in such company has complied with the minimum training requirement force;

as per the guidelines referred to in sub-section (12) for the tax year.”;

(iii) partner of a firm whose

(b) in sub-section (17), after the words “Director-General of accounts are required to be Shipping”, the words “or Inland Waterways Authority of India, as the case audited under this Act or under may be” shall be inserted. any other law in force; or the spouse of such partner (if

section 10 applies to such Amendment 55. In section 235 of the Income-tax Act, after clause (f), the following spouse). of section clause shall be inserted, namely:—

235.

3. (i) Assessee having income Where the 31st August. ‘(fa) “Inland Waterways Authority of India” shall have the same from profits and gains of provisions of meaning as assigned to it in section 3 of the Inland Waterways Authority of 82 of 1985. business or profession whose section 172 do India Act, 1985;’. accounts are not required to be not apply.

audited under this Act or under Amendment 56. In section 262 of the Income-tax Act, in sub-section (10), in clause any other law in force; of section (c), for the words “pertaining to business or profession”, the words

262. “pertaining to, business or profession, or other transactions,” shall be (ii) partner of a firm whose accounts are not required to be substituted. audited under this Act or under any other law in force or the Amendment 57. In section 263 of the Income-tax Act,–– spouse of such partner (if of section section 10 applies to such

263. spouse).

(a) in sub-section (1), for clause (c), the following clause shall be substituted, namely:–– 4. Any other assessee. 31st July.’; ‘(c) for the purposes of this section, “due date” in respect of the persons mentioned in column B of the Table below, subject to conditions as mentioned in column C of the said Table, shall be the due (b) for sub-section (5), the following sub-section shall be substituted,

date of the financial year succeeding the relevant tax year as mentioned namely:––

in column D thereof: “(5) If any person, having furnished a return under sub-section (1) TABLE or (4), discovers any omission or any wrong statement therein, he may, subject to the provisions of section 428(b), furnish a revised return at Sl. Person Conditions Due date any time within twelve months from the end of the relevant tax year, or No. before the completion of the assessment, whichever is earlier.”;

A B C D

1. Assessee, including the partners Where the 30th

(c) in sub-section (6),–– of the firm or the spouse of such provisions of November.68 68 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—

(i) for clause (b), the following clause shall be substituted, namely:–– “(b) (i) the provisions of clause (a) shall continue to apply for a tax year if any person has sustained a loss in the said tax year and has furnished a return of loss within the due date specified under sub-

section (1) and the updated return is a return of income or such updated return has the effect of reducing the loss;

(ii) the provisions of clause (a) shall also apply where an updated return is furnished by a person for the relevant tax year in pursuance of a notice issued under section 280 within such period as specified in the said notice and in such a case, the assessee shall be precluded from filing return in pursuance of the said notice in any other manner;”;

(ii) in clause (c),––

(A) in sub-clause (i), after the words “tax year”, the words, brackets, figures and letter “except in a case referred to in sub-section (6) (b) (i)” shall be inserted;

(B) in sub-clause (v), after the words “tax year” the words, brackets, figures and letter “except in a case referred to in sub-section (6) (b) (ii)” shall be inserted;

(iii) in clause (e), for the figures, brackets, letters and words “206(1)(m) to (p) and 206(2)(e) to (h)”, the figures, brackets, letters and words “206(2)(e) to (h) and 206(3) and (4)” shall be substituted.

Amendment 58. In section 266 of the Income-tax Act,–– of section

266.

(a) in sub-section (2), for clause (f), the following clause shall be substituted, namely:–– “(f) any tax credit claimed to be set off as per sections 206(2)(e) to (h) and 206(3) and (4); and”;

(b) in sub-section (4), for clause (f), the following clause shall be substituted, namely:–– “(f) any tax credit claimed to be set off as per the provisions of sections 206(2)(e) to (h) and 206(3) and (4).”;

(c) in sub-section (6), for clause (e), the following clause shall be substituted, namely:––68 69 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 69

(i) for clause (b), the following clause shall be substituted, namely:–– “(e) any tax credit claimed to be set off as per the provisions of sections 206(2)(e) to (h) and 206(3) and (4).”. “(b) (i) the provisions of clause (a) shall continue to apply for a tax year if any person has sustained a loss in the said tax year and has Amendment 59. In section 267 of the Income-tax Act,–– furnished a return of loss within the due date specified under sub- of section

267.

section (1) and the updated return is a return of income or such updated

(a) in sub-section (2), for clause (f), the following clause shall be return has the effect of reducing the loss; substituted, namely:––

(ii) the provisions of clause (a) shall also apply where an updated “(f) any tax credit claimed to be set off as per the provisions of return is furnished by a person for the relevant tax year in pursuance of sections 206(2)(e) to (h) and 206(3) and (4).”;

a notice issued under section 280 within such period as specified in the said notice and in such a case, the assessee shall be precluded from

(b) in sub-section (4), for clause (e), the following clause shall be filing return in pursuance of the said notice in any other manner;”; substituted, namely:––

(ii) in clause (c),–– “(e) any tax credit claimed, to be set off as per the provisions of sections 206(2)(e) to (h) and 206(3) and (4) which has not been

(A) in sub-clause (i), after the words “tax year”, the words, brackets, claimed in the earlier return.”; figures and letter “except in a case referred to in sub-section (6) (b) (i)” shall be inserted;

namely: ––

(B) in sub-clause (v), after the words “tax year” the words, brackets, figures and letter “except in a case referred to in sub-section (6) (b) (ii)” “(5)(i) For the purposes of sub-sections (1) and (3), the additional shall be inserted;

income-tax payable at the time of furnishing the return under section 263(6) shall be equal to, —

(iii) in clause (e), for the figures, brackets, letters and words “206(1)(m) to (p) and 206(2)(e) to (h)”, the figures, brackets, letters and words

(a) 25% of aggregate of tax and interest payable, as determined in sub- “206(2)(e) to (h) and 206(3) and (4)” shall be substituted.

section (1) or (3), as the case may be, if such return is furnished after the expiry of the time available under section 263(4) or (5) and before Amendment 58. In section 266 of the Income-tax Act,–– completion of twelve months from the end of the financial year of section

266. succeeding the relevant tax year; or

(a) in sub-section (2), for clause (f), the following clause shall be substituted, namely:–– (b) 50% of aggregate of tax and interest payable, as determined in sub-

section (1) or (3), as the case may be, if such return is furnished after the “(f) any tax credit claimed to be set off as per sections 206(2)(e) expiry of twelve months but before completion of twenty-four months to (h) and 206(3) and (4); and”; from the end of the financial year succeeding the relevant tax year; or

(b) in sub-section (4), for clause (f), the following clause shall be (c) 60% of aggregate of tax and interest payable, as determined in sub- substituted, namely:–– section (1) or (3), as the case may be, if such return is furnished after the expiry of twenty-four months, but before the completion of thirty-six “(f) any tax credit claimed to be set off as per the provisions of months, from the end of the financial year succeeding the relevant tax sections 206(2)(e) to (h) and 206(3) and (4).”; year; or

(c) in sub-section (6), for clause (e), the following clause shall be (d) 70% of aggregate of tax and interest payable, as determined in sub- substituted, namely:–– section (1) or (3), as the case may be, if such return is furnished after the expiry of thirty-six months, but before the completion of forty-eight70 70 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— months, from the end of the financial year succeeding the relevant tax year.

(ii) Where an updated return is filed in pursuance of a notice issued under section 280 within the period specified in the said notice, the additional income-tax payable under sub-section (5)(i) shall be increased by a further sum of 10 % of the aggregate of tax and interest payable, as determined in sub-section (1) or (3), as the case may be.”;

(d) in sub-section (7), in clause (a), for sub-clause (v), the following sub-clause shall be substituted, namely:–– “(v) any tax credit claimed, to be set off as per sections 206(2)(e) to (h) and 206(3) and (4), which has not been claimed in the earlier return; and”.

Amendment 60. In section 270 of the Income-tax Act, in sub-section (1), in clause (a), of section in sub-clause (vi), the words and figures “under section 144 or” shall be

270. omitted.

Amendment 61. In section 275 of the Income-tax Act,–– of section

275.

(a) for sub-section (4), the following sub-section shall be substituted,

namely:–– “(4)(a) The Assessing Officer shall, irrespective of anything contained in section 286, pass the assessment order under sub-section

(3) within one month from the end of the month in which,—

(i) the acceptance is received; or

(ii) the period of filing of objections under sub-section (2) expires.

(b) Irrespective of anything contained in section 286, where a draft of the proposed order of assessment under sub-section (1) is forwarded within the time period allowed under the said section, further time period available to the Assessing Officer to complete the assessment under sub-section (3) shall be governed by the provisions of this sub-section.”;

(b) for sub-section (14), the following sub-section shall be substituted,

namely:––70 71 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 71 months, from the end of the financial year succeeding the relevant tax “(14)(a) Upon receipt of the directions issued under sub-section year. (5), the Assessing Officer shall, in conformity with the directions, complete, irrespective of anything to the contrary contained in section

(ii) Where an updated return is filed in pursuance of a notice issued 286, the assessment without providing any further opportunity of under section 280 within the period specified in the said notice, the being heard to the assessee, within one month from the end of the additional income-tax payable under sub-section (5)(i) shall be increased month in which such direction is received;

by a further sum of 10 % of the aggregate of tax and interest payable, as determined in sub-section (1) or (3), as the case may be.”; (b) Irrespective of anything contained in section 286, where a draft of the proposed order of assessment under sub-section (1) is

(d) in sub-section (7), in clause (a), for sub-clause (v), the following forwarded within the time period allowed under section 286, time sub-clause shall be substituted, namely:–– period available for the Assessing Officer under this sub-section to pass the assessment order upon receipt of the direction issued under “(v) any tax credit claimed, to be set off as per sections 206(2)(e) sub-section (5), shall be governed by the provisions of sub-section to (h) and 206(3) and (4), which has not been claimed in the earlier (13) and this sub-section.”.

return; and”.

Amendment 62. In section 279 of the Income-tax Act, after sub-section (2), the Amendment 60. In section 270 of the Income-tax Act, in sub-section (1), in clause (a), of section following sub-section shall be inserted, namely: –– of section in sub-clause (vi), the words and figures “under section 144 or” shall be 279.

270. omitted. ‘(3) The “Assessing Officer” for the purposes of sections 280 and 281 shall mean to be an Assessing Officer other than the National Amendment 61. In section 275 of the Income-tax Act,–– Faceless Assessment Centre or any assessment unit referred to in section of section 273(3).’.

275.

(a) for sub-section (4), the following sub-section shall be substituted, Amendment 63. In section 286 of the Income-tax Act, for sub-section (2), the

namely:–– of section following sub-section shall be substituted, namely:––

286. “(4)(a) The Assessing Officer shall, irrespective of anything contained in section 286, pass the assessment order under sub-section “(2)(a) Time limit for completion of any assessment or

(3) within one month from the end of the month in which,— reassessment as provided in sub-section (1) [Table: Sl No. 1 to 4], in a case where reference is made to the Transfer Pricing Officer for

(i) the acceptance is received; or determining the arm’s length price under section 166(1), shall be extended by an additional period of twelve months.

(ii) the period of filing of objections under sub-section (2) expires.

(b) In terms of provisions of sub-section (1) [Table: Sl No. 1 to 4]

(b) Irrespective of anything contained in section 286, where a and this sub-section, the draft of the proposed order of assessment draft of the proposed order of assessment under sub-section (1) is referred to in section 275 shall be made at any time up to the time limit forwarded within the time period allowed under the said section, of assessment, reassessment or recomputation referred to in the said further time period available to the Assessing Officer to complete Table and this sub-section.”.

the assessment under sub-section (3) shall be governed by the provisions of this sub-section.”;

Amendment 64. In section 295 of the Income-tax Act, in sub-section (2), after clause of section (b), the following clauses shall be inserted, namely:––

(b) for sub-section (14), the following sub-section shall be substituted, 295.

namely:–– “(c) where the undisclosed income of the other person pertains only to the period––72 72 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—

(i) commencing from the tax year (herein referred to as the specified year) immediately preceding the year of initiation of search or requisition; and

(ii) ending on the date of initiation of search or making of requisition, then irrespective of the provisions of section 301(a), the block period in respect of such other person shall comprise of the specified year and the period starting from the 1st April of the tax year in which search was initiated or requisition was made and ending on the date of the execution of the last of the authorisations for such search or such requisition;

(d) where the undisclosed income of the other person pertains to a single tax year out of the five tax years preceding the specified year, then irrespective of the provisions of section 301(a), the block period in respect of such other person shall comprise of only that single tax year.”.

Amendment 65. In section 296 of the Income-tax Act, for sub-section (1), the of section following sub-section shall be substituted, namely:––

296. “(1) Irrespective of the provisions of section 286, the order under

section 294 shall be passed within eighteen months from the end of the quarter in which the search was initiated or requisition was made.”.

Amendment 66. In section 332 of the Income-tax Act, in sub-section (1), in clause (f), of section for the words, figures, brackets and letters “Schedule VII (Table: Sl. No. 10)

332. to (Table: Sl. No. 19)”, the words, figures, brackets and letters “Schedule VII [Table: Sl. Nos. 17 to 19]” shall be substituted.

Amendment 67. In section 349 of the Income-tax Act, after the word, figures, of section brackets and letter “section 263(1)(c)”, the word, figures and brackets “or

349.

263(4)” shall be inserted.

Amendment 68. In section 351 of the Income-tax Act, in sub-section (1),–– of section

351. (i) in clause (b), the word and figures “or 346” shall be omitted;

(ii) in clause (c), for the word “ensure”, the word “enure” shall be substituted.

Amendment 69. In section 352 of the Income-tax Act, in sub-section (4), in the Table, of section for serial number 8 and the entries relating thereto, the following shall be

352. substituted, namely:––73 72 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 73

(i) commencing from the tax year (herein referred to as the specified A B C D year) immediately preceding the year of initiation of search or

(i) (ii) requisition; and

(ii) ending on the date of initiation of search or making of “8. The specified The date The date of requisition, person has merged with of merger merger.”. any other— then irrespective of the provisions of section 301(a), the block period in

(a) entity other than a respect of such other person shall comprise of the specified year and the registered non-profit period starting from the 1st April of the tax year in which search was organisation; or initiated or requisition was made and ending on the date of the execution of the last of the authorisations for such search or such requisition;

(b) registered non- profit organisation

(d) where the undisclosed income of the other person pertains to a having objects same or single tax year out of the five tax years preceding the specified year, then similar to it but the said irrespective of the provisions of section 301(a), the block period in respect merger does not fulfil of such other person shall comprise of only that single tax year.”. such conditions, as may be prescribed; or Amendment 65. In section 296 of the Income-tax Act, for sub-section (1), the

296. profit organisation that does not have same or “(1) Irrespective of the provisions of section 286, the order under similar objects.

section 294 shall be passed within eighteen months from the end of the quarter in which the search was initiated or requisition was made.”. Insertion of 70. After section 354 of the Income-tax Act, the following section shall new section be inserted, namely:–– 354A.

Amendment 66. In section 332 of the Income-tax Act, in sub-section (1), in clause (f), of section for the words, figures, brackets and letters “Schedule VII (Table: Sl. No. 10) Merger of “354A. Where any registered non-profit organisation merges with any registered

332. other registered non-profit organisation, the provisions of section 352 to (Table: Sl. No. 19)”, the words, figures, brackets and letters “Schedule VII non-profit [Table: Sl. Nos. 17 to 19]” shall be substituted. organisation shall not apply if, — in certain Amendment 67. In section 349 of the Income-tax Act, after the word, figures, cases.

of section brackets and letter “section 263(1)(c)”, the word, figures and brackets “or (a) the other registered non-profit organisation has same or similar

349. objects; and 263(4)” shall be inserted.

Amendment 68. In section 351 of the Income-tax Act, in sub-section (1),––

(b) the said merger fulfils such conditions as may be prescribed.”. of section

351. (i) in clause (b), the word and figures “or 346” shall be omitted;

Amendment 71. In section 379 of the Income-tax Act, in sub-section (2), for the

(ii) in clause (c), for the word “ensure”, the word “enure” shall be of section words “waive any penalty imposable”, the words “waive any penalty imposed substituted. 379. or imposable” shall be substituted.

Amendment 72. In section 393 of the Income-tax Act,–– Amendment 69. In section 352 of the Income-tax Act, in sub-section (4), in the Table, of section of section for serial number 8 and the entries relating thereto, the following shall be 393.

352. substituted, namely:––74 74 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—

(a) in sub-section (1), in the Table, in serial number (3), in Note 3, for the words, figures and brackets “serial number 3(iii)”, the words, figures and brackets, “serial number 3(i)” shall be substituted;

(b) in sub-section (4), in the Table, against serial number 7, in column C,––

(i) in clause (a), in sub-clause (i), after the words “banking company”, the words and brackets “or any co-operative society engaged in carrying on the business of banking (including a co-operative land mortgage bank)” shall be inserted;

(ii) in clause (b), in the long line, in sub-clause (c), for item (iv), the following item shall be substituted, namely:— “(iv) on the compensation amount awarded by a Motor Accidents Claims Tribunal—

(A) to an individual; or

(B) to a person other than an individual, where the aggregate interest on such compensation does not exceed ₹ 50000 during the tax year;”;

(c) sub-section (6) shall be renumbered as sub-section (6) (a) thereof and after sub-section (6) (a) as so renumbered, the following clause shall be inserted with effect from the 1st April, 2027, namely:–– “(b) The declaration referred in clause (a) may also be furnished electronically to a depository, as defined in section (2)(e) of the 22 of 1996.

Depositories Act, 1996, where––

(i) the income is from units, interest on securities or dividends, as the case may be, as referred to in section 393(1) [Table: 4(i), 5(i) or 7];

(ii) such units or securities are held with such depository; and

(iii) such securities are listed on a recognised stock exchange, in accordance with such procedure and manner, as may be prescribed.”;

(d) for sub-section (7), the following sub-section shall be substituted,

namely:––74 75 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 75

(a) in sub-section (1), in the Table, in serial number (3), in Note 3, for “(7) The person responsible for paying any income or sum of the the words, figures and brackets “serial number 3(iii)”, the words, figures nature referred to in sub-section (6) shall deliver or cause to be delivered, and brackets, “serial number 3(i)” shall be substituted; such declaration referred therein, received from the person, as specified in column (B) of the Table in sub-section (6) or the depository, to the prescribed income-tax authority, on or before the seventh day of the

(b) in sub-section (4), in the Table, against serial number 7, in column month immediately following the end of each quarter in which declaration C,–– is furnished to him as per sub-section (6).”.

(i) in clause (a), in sub-clause (i), after the words “banking company”, the words and brackets “or any co-operative society engaged Amendment 73. In section 394 of the Income-tax Act, in sub-section (1), in the in carrying on the business of banking (including a co-operative land of section Table,—

394. mortgage bank)” shall be inserted;

(a) against Sl. No. 1, in column D, for the figure and symbol “1%”, the

(ii) in clause (b), in the long line, in sub-clause (c), for item (iv), the figure and symbol “2%” shall be substituted; following item shall be substituted, namely:—

(b) against Sl. No. 2, in column D, for the figure and symbol “5%”, the “(iv) on the compensation amount awarded by a Motor figure and symbol “2%” shall be substituted;

Accidents Claims Tribunal—

(A) to an individual; or figure and symbol “2%” shall be substituted;

(B) to a person other than an individual, where the aggregate (d) against Sl. No. 5, in column D, for the figure and symbol “1%”, the interest on such compensation does not exceed ₹ 50000 during the figure and symbol “2%” shall be substituted;

tax year;”;

(e) against Sl. No. 7, in column D, in clause (a), for the figure and

(c) sub-section (6) shall be renumbered as sub-section (6) (a) thereof symbol “5%”, the figure and symbol “2%” shall be substituted; and after sub-section (6) (a) as so renumbered, the following clause shall be inserted with effect from the 1st April, 2027, namely:–– (f) against Sl. No. 8, in column D, for clauses (a) and (b), the figure and symbol “2%” shall be substituted.

“(b) The declaration referred in clause (a) may also be furnished electronically to a depository, as defined in section (2)(e) of the Amendment 74. In section 395 of the Act,— of section 22 of 1996.

Depositories Act, 1996, where–– 395.

(a) in sub-section (1), for clause (c), the following clause shall be

(i) the income is from units, interest on securities or dividends, as substituted, namely:— the case may be, as referred to in section 393(1) [Table: 4(i), 5(i) or 7];

(ii) such units or securities are held with such depository; and “(c) when a certificate is issued under clause (b) or sub-section (6), as the case may be, the person responsible for paying the income or sum shall deduct the tax at the rate specified in such certificate, or deduct no

(iii) such securities are listed on a recognised stock exchange, income-tax, as the case may be, till its validity.”; in accordance with such procedure and manner, as may be prescribed.”;

(b) after sub-section (5), the following sub-section shall be inserted,

namely:—

(d) for sub-section (7), the following sub-section shall be substituted, “(6) The application referred to in sub-section (1)(a) may also be

namely:–– filed before the prescribed income-tax authority, subject to such76 76 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— conditions as may be prescribed, and such authority on electronic verification of the contents of the application, may—

(a) either issue a certificate for deduction of income-tax at lower rate or no deduction of income-tax; or

(b) reject such application on account of non-fulfillment of the prescribed conditions or on account of the application being incomplete.”.

Amendment 75. In section 397 of the Income-tax Act, in sub-section (1), for clause (c), of section the following clause shall be substituted with effect from the 1st October,

397.

2026, namely:–– “(c) the provisions of clause (a) shall not apply to––

(i) a person in respect of a transaction where he is required to deduct tax under section 393(1) [Table: Sl. No. 2(i), 3(i) or 6(ii)]; or

(ii) a person referred to in section 393(4) [Table: Sl. No. 12.C(a)] in respect of a transaction where he is required to deduct tax on consideration for transfer of a virtual digital asset under

section 393(1) [Table: Sl.No.8(vi)]; or

(iii) a resident individual or Hindu undivided family in respect of a transaction where he is required to deduct tax on any consideration for the transfer of any immovable property under section 393(2) [Table: Sl.

No. 17]; or

(iv) a person notified in this regard by the Central Government.”.

Amendment 76. In section 399 of the Income-tax Act, for the figures “427” at both the of section places where they occur, the words, figures and brackets “427(1) and (2)”

399. shall be substituted.

Amendment 77. In section 400 of the Income-tax Act, for sub-section (2), the of section following sub-section shall be substituted, namely:—

400. “(2) The Board may, with the previous approval of the Central Government, issue guidelines to remove any difficulty arising in giving effect to the provisions of this Chapter and such guidelines shall be—

(a) binding on the income-tax authorities and on the person liable to deduct or, as the case may be, collect income-tax; and

(b) laid before each House of Parliament.”.76 77 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 77 conditions as may be prescribed, and such authority on electronic Amendment 78. In section 402 of the Income-tax Act,–– verification of the contents of the application, may— of section

402.

(a) either issue a certificate for deduction of income-tax at lower (a) in clause (27), in sub-clause (c), for the words “authorised person rate or no deduction of income-tax; or responsible”, the words, brackets, letter and figures “authorised person, referred in clause (c) of section 2 of the Foreign Exchange Management

(b) reject such application on account of non-fulfillment of the 42 of 1999.

Act, 1999, responsible” shall be substituted; prescribed conditions or on account of the application being incomplete.”.

(b) in clause (47), after sub-clause (e), the following sub-clause shall be inserted, namely: — Amendment 75. In section 397 of the Income-tax Act, in sub-section (1), for clause (c), of section the following clause shall be substituted with effect from the 1st October, “(f) supply of manpower to a person to work under his

397.

2026, namely:–– supervision, control or direction.”. “(c) the provisions of clause (a) shall not apply to–– Amendment 79. In section 411 of the Income-tax Act, for sub-section (3), the of section following sub-section shall be substituted, namely:––

(i) a person in respect of a transaction where he is required to deduct 411. tax under section 393(1) [Table: Sl. No. 2(i), 3(i) or 6(ii)]; or “(3)(a) if the amount specified in any notice of demand under section

(ii) a person referred to in section 393(4) 289 is not paid within the period specified under sub-section (1),–– [Table: Sl. No. 12.C(a)] in respect of a transaction where he is required to deduct tax on consideration for transfer of a virtual digital asset under (i) the assessee shall be liable to pay simple interest at 1% for every

section 393(1) [Table: Sl.No.8(vi)]; or month or part of a month comprised in the period; and

(iii) a resident individual or Hindu undivided family in respect of a (ii) such period shall commence from the day immediately following transaction where he is required to deduct tax on any consideration for the end of the period mentioned in sub-section (1) and end with the day the transfer of any immovable property under section 393(2) [Table: Sl. on which the amount is paid.

No. 17]; or

(b) No interest shall be charged under this sub-section in respect of any

(iv) a person notified in this regard by the Central Government.”. demand raised on account of penalty levied under section 439,– Amendment 76. In section 399 of the Income-tax Act, for the figures “427” at both the (i) up to the date of passing of the order under section 359;

of section places where they occur, the words, figures and brackets “427(1) and (2)”

399. shall be substituted. (ii) up to the date of passing of the order under section 363, where the assessment or reassessment has been made in pursuance to directions Amendment 77. In section 400 of the Income-tax Act, for sub-section (2), the issued by the Dispute Resolution Panel under section 275.”.

of section following sub-section shall be substituted, namely:—

400.

Amendment 80. In section 423 of the Income-tax Act, in sub-section (4), in clause (d), “(2) The Board may, with the previous approval of the Central of section for sub-clause (vii), the following sub-clause shall be substituted, namely:–– Government, issue guidelines to remove any difficulty arising in giving 423.

effect to the provisions of this Chapter and such guidelines shall be— “(vii) any tax credit allowed to be set off as per sections 206(2)(e) to

(h) and 206(3) and (4).”.

(a) binding on the income-tax authorities and on the person liable to deduct or, as the case may be, collect income-tax; and Amendment 81. In section 424 of the Income-tax Act, in sub-section (2), for clause (f), of section the following clause shall be substituted, namely:––

(b) laid before each House of Parliament.”.

424.78 78 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— “(f) any tax credit allowed to be set off as per sections 206(2)(e) to (h) and 206(3) and (4).”.

Amendment 82. In section 425 of the Income-tax Act, in sub-section (5), for clause (f), of section the following clause shall be substituted, namely:––

425. “(f) any tax credit allowed to be set off as per sections 206(2)(e) to (h) and 206(3) and (4).”.

Substitution 83. For sections 427 and 428 of the Income-tax Act, the following sections of new shall be substituted, namely:–– sections for sections 427 and 428.

Fee for “427. (1) Without prejudice to the provisions of this Act, where any default in person fails to deliver or cause to be delivered a statement as per section furnishing 397(3)(b) within the time prescribed therein, he shall be liable to pay by statements.

way of fee, a sum of ₹ 200 for every day for which such failure continues.

(2) The amount of fee referred to in sub-section (1) shall–

(a) not exceed the amount of tax deductible or collectible; and

(b) be paid before delivering or causing to be delivered the statement, as per sub-section (1).

(3) Without prejudice to the provisions of this Act, where any person who is required to furnish a statement of financial transaction or reportable account under section 508(1), fails to furnish such statement within the time prescribed under section 508(2), he shall be liable to pay by way of fee, a sum of ₹ 200 for every day for which such failure continues and such fee shall not exceed a sum of ₹ 100000.

Fee for 428. Without prejudice to the provisions of this Act, where any person– default in furnishing return of income, audited accounts and reports.

(a) required to furnish a return of income under section 263, fails to do so within the due date, as specified under sub-section (1) of the said

section, he shall be liable to pay by way of fee,––

(i) a sum of ₹ 1000, if the total income of such person does not exceed ₹ 500000; and79 78 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 79 “(f) any tax credit allowed to be set off as per sections 206(2)(e) to (h) (ii) a sum of ₹ 5000, in any other case;

and 206(3) and (4).”.

(b) furnishes a return of income under section 263(5) beyond nine Amendment 82. In section 425 of the Income-tax Act, in sub-section (5), for clause (f), months from the end of relevant tax year, he shall be liable to pay by way of section the following clause shall be substituted, namely:–– of fee,––

425. “(f) any tax credit allowed to be set off as per sections 206(2)(e) to (h) (i) a sum of ₹ 1000, if the total income of such person does not and 206(3) and (4).”. exceed ₹ 500000; and Substitution 83. For sections 427 and 428 of the Income-tax Act, the following sections (ii) a sum of ₹ 5000, in any other case;

of new shall be substituted, namely:–– sections for

(c) fails to get his accounts audited for any tax year or years and sections 427 and 428. furnish the report of such audit as required under section 63, he shall be liable to pay by way of fee,–– Fee for “427. (1) Without prejudice to the provisions of this Act, where any default in person fails to deliver or cause to be delivered a statement as per section (i) a sum of ₹ 75000 for a delay up to one month for which such furnishing 397(3)(b) within the time prescribed therein, he shall be liable to pay by failure continues; and statements.

way of fee, a sum of ₹ 200 for every day for which such failure continues.

(ii) a sum of ₹ 150000 thereafter;

(2) The amount of fee referred to in sub-section (1) shall–

(d) fails to furnish a report from an accountant as required by section

(a) not exceed the amount of tax deductible or collectible; and 172, he shall be liable to pay by way of fee,––

(b) be paid before delivering or causing to be delivered the (i) a sum of ₹ 50000 for a delay up to one month for which such statement, as per sub-section (1). failure continues; and

(3) Without prejudice to the provisions of this Act, where any person (ii) a sum of ₹ 100000 thereafter.”. who is required to furnish a statement of financial transaction or reportable account under section 508(1), fails to furnish such statement within the time Amendment 84. In section 439 of the Income-tax Act,–– prescribed under section 508(2), he shall be liable to pay by way of fee, a of section sum of ₹ 200 for every day for which such failure continues and such fee 439.

(a) in sub-section (11),–– shall not exceed a sum of ₹ 100000.

(i) in clause (e), the word “and” occurring at the end shall be omitted;

Fee for 428. Without prejudice to the provisions of this Act, where any person– default in furnishing (ii) in clause (f), for the word “apply.”, the words “apply; and” shall return of be substituted; income, audited

(iii) after clause (f), the following clause shall be inserted, namely:–– accounts and reports. “(g) income referred to in section 195(1)(b).”.

(a) required to furnish a return of income under section 263, fails to do so within the due date, as specified under sub-section (1) of the said (b) after sub-section (13), the following sub-section shall be inserted,

section, he shall be liable to pay by way of fee,–– namely:––

(i) a sum of ₹ 1000, if the total income of such person does not exceed ₹ 500000; and80 80 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— “(13A) Where additional income-tax is paid in accordance with

section 267(5)(ii), the income on which such additional income-tax is paid shall not form the basis of imposition of penalty under this section.”.

Amendment 85. In section 440 of the Income-tax Act,–– of section

440.

(a) for the marginal heading, the following marginal heading shall be substituted, namely:–– “Waiver of penalty and immunity from prosecution.”;

(b) for sub-sections (1) to (4), the following sub-sections shall be substituted, namely:–– “(1) An assessee may make an application to the Assessing Officer to grant waiver of penalty levied under section 439 and immunity from initiation of proceedings under section 478 or 479 on fulfilment of the

following conditions: ––

(a) the tax and interest payable as per the order of assessment under

section 270(10) or reassessment under section 279, has been paid within the period specified in the notice of demand;

(b) where penalty has been levied under the circumstances referred to in section 439(11)(a) to (f), additional income-tax amounting to 100% of the amount of tax payable on under-reported income has been paid within the period specified in the notice of demand, in lieu of such penalty;

(c) where penalty has been levied under the circumstances referred to in section 439(11)(g), additional income-tax amounting to 120% of the amount of tax payable on under-reported income has been paid within the period specified in the notice of demand, in lieu of such penalty; and

(d) no appeal has been filed against the order of assessment or reassessment and levy of penalty referred to in clause (a), (b) and (c).

(2) An application referred in sub-section (1) shall be made within one month from the end of the month in which the order referred to in the said sub-section is received by the assessee, in such form and verified in such manner, as may be prescribed.

(3) The Assessing Officer shall, on fulfilment of the conditions as specified in sub-section (1), and after the expiry of the period of filing appeal as specified in section 358(3)(a), grant waiver of penalty under80 81 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 81 “(13A) Where additional income-tax is paid in accordance with section 439 and immunity from initiation of proceedings under section

section 267(5)(ii), the income on which such additional income-tax is paid 478 or 479. shall not form the basis of imposition of penalty under this section.”.

(4) No waiver or immunity under sub-section (3) shall be granted if Amendment 85. In section 440 of the Income-tax Act,–– any proceeding has been initiated under Chapter XXII.”. of section

440.

Omission of 86. Section 443 of the Income-tax Act shall be omitted.

(a) for the marginal heading, the following marginal heading shall be

section 443. substituted, namely:–– Substitution 87. For section 446 of the Income-tax Act, the following section shall be “Waiver of penalty and immunity from prosecution.”; of new substituted, namely:—

section for

section 446.

(b) for sub-sections (1) to (4), the following sub-sections shall be substituted, namely:–– Penalty for “446. (1) If any person who is required to furnish a statement in respect failure to of a transaction of a crypto-asset under section 509(1), fails to furnish such “(1) An assessee may make an application to the Assessing Officer to furnish statement within the time prescribed under the said section, the prescribed information grant waiver of penalty levied under section 439 and immunity from income-tax authority under that section may impose on him, a penalty of ₹ or for initiation of proceedings under section 478 or 479 on fulfilment of the furnishing 200 for every day for which such failure continues.

following conditions: –– inaccurate information

(a) the tax and interest payable as per the order of assessment under on transaction of

section 270(10) or reassessment under section 279, has been paid within crypto-asset. the period specified in the notice of demand;

(2) The prescribed income-tax authority may impose a penalty of ₹

(b) where penalty has been levied under the circumstances referred 50000 on a person referred in sub-section (1), if such person— to in section 439(11)(a) to (f), additional income-tax amounting to 100% of the amount of tax payable on under-reported income has been (a) provides inaccurate information in the statement and fails to paid within the period specified in the notice of demand, in lieu of such remove such inaccuracy as per section 509(4); or penalty;

(b) fails to comply with due diligence the requirement under section 509(5).”.

(c) where penalty has been levied under the circumstances referred to in section 439(11)(g), additional income-tax amounting to 120% of Omission of 88. Section 447 of the Income-tax Act shall be omitted.

the amount of tax payable on under-reported income has been paid

section 447. within the period specified in the notice of demand, in lieu of such Substitution 89. For section 454 of the Income-tax Act, the following section shall be penalty; and of new substituted, namely:––

section for

section 454.

(d) no appeal has been filed against the order of assessment or reassessment and levy of penalty referred to in clause (a), (b) and (c). Penalty for “454. Where any person, who is required to furnish a statement of failure to financial transaction or reportable account under section 508(1), fails to furnish

(2) An application referred in sub-section (1) shall be made within one furnish such statement or reportable account within the period specified statement of month from the end of the month in which the order referred to in the said financial in the notice issued under section 508(7), the income-tax authority sub-section is received by the assessee, in such form and verified in such transaction or prescribed under section 508(1) may impose on him, a penalty of ₹ 1000 manner, as may be prescribed. reportable for every day for which such failure continues, beginning from the day account after immediately after the period specified in such notice for furnishing such a notice.

(3) The Assessing Officer shall, on fulfilment of the conditions as statement or reportable account expires and such penalty shall not exceed specified in sub-section (1), and after the expiry of the period of filing ₹ 100000.”.

appeal as specified in section 358(3)(a), grant waiver of penalty under82 82 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— Amendment 90. In section 466 of the Income-tax Act, for the figures “1000”, the of section figures “25000” shall be substituted.

466.

Amendment 91. In section 470 of the Income-tax Act, the words and figures “or 447” of section shall be omitted.

470.

Amendment 92. In section 471 of the Income-tax Act,–– of section

471.

(a) in sub-section (1), after the words “reasonable opportunity of being heard”, the words “by way of a show cause notice to that effect” shall be inserted;

(b) after sub-section (3), the following sub-sections shall be inserted,

namely:–– “(4) Irrespective of anything contained in any other provision of this Act, where any draft of the proposed order of assessment under section 275 or assessment under section 270 or reassessment under section 279 is made on or after the 1st April, 2027,––

(a) penalty under section 439, if any, shall constitute part of such draft assessment or shall be imposed as a part of such order of assessment or reassessment, as the case may be; and

(b) the reference to the assessment order or the penalty order under

section 439 in any of the provisions of this Act shall take reference to such order of assessment or reassessment, as the case may be.

(5) Where the approval of the Joint Commissioner is taken for passing of an order of assessment or reassessment on or after the 1st April, 2027, such approval shall also be deemed to be the approval for the imposition of penalty under section 439, if any, constituting part of such order of assessment or reassessment.”.

Amendment 93. In section 473 of the Income-tax Act,–– of section

473.

(a) for the marginal heading, the following marginal heading shall be substituted, namely:–– “Contravention of order made during search action.”;82 83 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 83 Amendment 90. In section 466 of the Income-tax Act, for the figures “1000”, the (b) for the words “rigorous imprisonment which may extend to two years of section figures “25000” shall be substituted. and shall also be liable to fine”, the words “simple imprisonment up to two

466. years and with fine” shall be substituted.

Amendment 91. In section 470 of the Income-tax Act, the words and figures “or 447” of section shall be omitted. Amendment 94. In section 474 of the Income-tax Act,––

470. of section

474.

Amendment 92. In section 471 of the Income-tax Act,–– (a) for the marginal heading, the following marginal heading shall be of section substituted, namely:––

471. “Failure to afford facility for inspection of books of account during

(a) in sub-section (1), after the words “reasonable opportunity of being search.”; heard”, the words “by way of a show cause notice to that effect” shall be inserted;

(b) for the words “rigorous imprisonment for a term which may extend to two years and shall also be liable to fine”, the words “simple

(b) after sub-section (3), the following sub-sections shall be inserted, imprisonment for a term up to six months, or with fine, or with both” shall

namely:–– be substituted. “(4) Irrespective of anything contained in any other provision of this Amendment 95. In section 475 of the Income-tax Act, for the words “rigorous Act, where any draft of the proposed order of assessment under section of section imprisonment for a term which may extend to two years and shall also be 275 or assessment under section 270 or reassessment under section 279 is 475.

liable to fine”, the words “simple imprisonment for a term up to two years made on or after the 1st April, 2027,–– and with fine” shall be substituted.

(a) penalty under section 439, if any, shall constitute part of such Amendment 96. In section 476 of the Income-tax Act, for sub-section (1), the draft assessment or shall be imposed as a part of such order of of section following sub-section shall be substituted, namely:–– assessment or reassessment, as the case may be; and 476.

“(1) If a person fails to—

(b) the reference to the assessment order or the penalty order under

section 439 in any of the provisions of this Act shall take reference to

(a) pay the tax deducted at source by him to the credit of the Central such order of assessment or reassessment, as the case may be.

Government, as required by or under the provisions of Chapter XIX-B; or

(5) Where the approval of the Joint Commissioner is taken for passing of an order of assessment or reassessment on or after the 1st April, 2027,

(b) pay tax or ensure payment of tax to the credit of the Central such approval shall also be deemed to be the approval for the imposition Government in respect of–– of penalty under section 439, if any, constituting part of such order of assessment or reassessment.”.

(A) any income by way of winnings from online games as referred in section 393(3) [Table: Sl. No. 2], excluding such Amendment 93. In section 473 of the Income-tax Act,–– winnings which are wholly in kind, as referred to in Note 2 to the of section

473. said Table; or

(a) for the marginal heading, the following marginal heading shall be

(B) any sum by way of consideration for transfer of a virtual substituted, namely:–– digital asset as referred in section 393(1) [Table: Sl. No. 8(vi)], excluding such consideration which is wholly in kind, as referred to “Contravention of order made during search action.”;

in Note 6 to the said Table, he shall be punishable––84 84 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—

(i) with simple imprisonment for a term up to two years, or with fine, or with both, where the amount of such tax exceeds fifty lakh rupees; or

(ii) with simple imprisonment for a term up to six months, or with fine, or with both, where the amount of such tax exceeds ten lakh rupees but does not exceed fifty lakh rupees; or

(iii) with fine, in any other case.”.

Amendment 97. In section 477 of the Income-tax Act, for sub-section (1), the of section following sub-section shall be substituted, namely:––

477. “(1) If a person fails to pay the tax collected by him to the credit of the Central Government, as required under section 397(3)(a), he shall be punishable––

(a) with simple imprisonment for a term up to two years, or with fine, or with both, where the amount of such tax exceeds fifty lakh rupees; or

(b) with simple imprisonment for a term up to six months or with fine, or with both, where the amount of such tax exceeds ten lakh rupees but does not exceed fifty lakh rupees; or

Amendment 98. In section 478 of the Income-tax Act, for sub-sections (1) and (2), the of section following sub-sections shall be substituted, namely:––

478. “(1) If a person wilfully attempts in any manner to evade any tax, penalty or interest chargeable or imposable, or under-reports his income, under this Act, he shall be punishable—

(a) with simple imprisonment for a term up to two years, or with fine, or with both, where the amount sought to be evaded or tax on under- reported income exceeds fifty lakh rupees; or

(b) with simple imprisonment for a term up to six months, or with fine, or with both, where the amount sought to be evaded or tax on under- reported income exceeds ten lakh rupees but does not exceed fifty lakh rupees; or

(2) If a person wilfully attempts in any manner to evade payment of any tax, penalty or interest under this Act, he shall be punishable —85 84 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 85

(i) with simple imprisonment for a term up to two years, or with (a) with simple imprisonment for a term up to two years, or with fine, fine, or with both, where the amount of such tax exceeds fifty lakh or with both, where the amount sought to be evaded exceeds fifty lakh rupees; or rupees; or

(ii) with simple imprisonment for a term up to six months, or with (b) with simple imprisonment for a term up to six months, or with fine, fine, or with both, where the amount of such tax exceeds ten lakh rupees or with both, where the amount sought to be evaded exceeds ten lakh but does not exceed fifty lakh rupees; or rupees but does not exceed fifty lakh rupees; or

(iii) with fine, in any other case.”. (c) with fine, in any other case.”.

Amendment 97. In section 477 of the Income-tax Act, for sub-section (1), the Amendment 99. In section 479 of the Income-tax Act, in sub-section (1), for clauses of section following sub-section shall be substituted, namely:–– of section (a) and (b), the following clauses shall be substituted, namely:––

477. 479. “(1) If a person fails to pay the tax collected by him to the credit of “(a) with simple imprisonment for a term up to two years, or with fine, the Central Government, as required under section 397(3)(a), he shall be or with both, where the amount of tax, which would have been evaded if punishable–– the failure had not been discovered, exceeds fifty lakh rupees; or

(a) with simple imprisonment for a term up to two years, or with

(b) with simple imprisonment for a term up to six months, or with fine, fine, or with both, where the amount of such tax exceeds fifty lakh or with both, where the amount of tax, which would have been evaded if rupees; or the failure had not been discovered, exceeds ten lakh rupees but does not exceed fifty lakh rupees; or

(b) with simple imprisonment for a term up to six months or with fine, or with both, where the amount of such tax exceeds ten lakh

(c) with fine, in any other case.”. rupees but does not exceed fifty lakh rupees; or Substitution 100. For sections 480 and 481 of the Income-tax Act, the following

(c) with fine, in any other case.”. of new sections shall be substituted, namely:–– sections for Amendment 98. In section 478 of the Income-tax Act, for sub-sections (1) and (2), the sections 480 of section following sub-sections shall be substituted, namely:–– and 481.

478.

Failure to “480. If a person wilfully fails to furnish in due time the return of “(1) If a person wilfully attempts in any manner to evade any tax, furnish income, setting forth his undisclosed income for the block period, which is penalty or interest chargeable or imposable, or under-reports his income, return of required to be furnished by notice given under section 294(1)(a), he shall under this Act, he shall be punishable— income be punishable— setting forth

(a) with simple imprisonment for a term up to two years, or with fine, undisclosed income. or with both, where the amount sought to be evaded or tax on under-

(a) with simple imprisonment for a term up to two years, or with fine, reported income exceeds fifty lakh rupees; or or with both, where the amount of tax exceeds fifty lakh rupees; or

(b) with simple imprisonment for a term up to six months, or with fine,

(b) with simple imprisonment up to six months, or with fine, or with or with both, where the amount sought to be evaded or tax on under- both, where the amount of tax exceeds ten lakh rupees but does not exceed reported income exceeds ten lakh rupees but does not exceed fifty lakh fifty lakh rupees; or rupees; or

(2) If a person wilfully attempts in any manner to evade payment of any tax, penalty or interest under this Act, he shall be punishable —86 86 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— Failure to 481. If a person wilfully fails to comply with a direction issued to him comply with under section 268 (5), he shall be punishable with simple imprisonment for a direction a term up to six months, or with fine, or with both.”.

of special audit or valuation.

Amendment 101. In section 482 of the Income-tax Act, for clauses (a) and (b), the of section following clauses shall be substituted, namely:––

482. “(a) with simple imprisonment for a term up to two years, or with fine, or with both, where the amount of tax, which would have been evaded if the statement or account had been accepted as true, exceeds fifty lakh rupees; or

(b) with simple imprisonment for a term up to six months, or with fine, or with both, where the amount of tax, which would have been evaded if the statement or account had been accepted as true, exceeds ten lakh rupees but does not exceed fifty lakh rupees; or

Amendment 102. In section 483 of the Income-tax Act, in sub-section (1), for the of section words “rigorous imprisonment for a term which shall not be less than three

483. months but which may extend to two years and with fine”, the words “simple imprisonment for a term up to two years and with fine” shall be substituted.

Amendment 103. In section 484 of the Income-tax Act, for the longline, the following of section longline shall be substituted, namely:––

484. “he shall be punishable —

(i) with simple imprisonment for a term up to two years, or with fine, or with both, where the amount of tax, penalty or interest which would have been evaded, if the declaration, account or statement had been accepted as true, or which is wilfully attempted to be evaded, exceeds fifty lakh rupees; or

(ii) with simple imprisonment for a term up to six months, or with fine, or with both, where the amount of tax, penalty or interest which would have been evaded, if the declaration, account or statement had been accepted as true, or which is wilfully attempted to be evaded, exceeds ten lakh rupees but does not exceed fifty lakh rupees; or

(iii) with fine, in any other case.”.86 87 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 87 Failure to 481. If a person wilfully fails to comply with a direction issued to him Amendment 104. In section 485 of the Income-tax Act, for the words “rigorous comply with under section 268 (5), he shall be punishable with simple imprisonment for of section imprisonment for a term which shall not be less than six months but which a direction 485.

a term up to six months, or with fine, or with both.”. may extend to seven years, and with fine”, the words “simple imprisonment of special for a term which shall not be less than six months but which may extend to audit or valuation. three years and with fine” shall be substituted.

Amendment 101. In section 482 of the Income-tax Act, for clauses (a) and (b), the Amendment 105. In section 494 of the Income-tax Act, in sub-section (1), for the of section following clauses shall be substituted, namely:–– of section words “imprisonment which may extend to six months, and shall also be

482. 494. liable to fine”, the words “simple imprisonment up to one month, or with fine, or with both” shall be substituted. “(a) with simple imprisonment for a term up to two years, or with fine, or with both, where the amount of tax, which would have been evaded if the statement or account had been accepted as true, exceeds fifty lakh Amendment 106. Section 522 of the Income-tax Act shall be numbered as sub-section rupees; or of section (1) thereof and after sub-section (1) as so numbered, the following sub-

522.

section shall be inserted, namely:––

(b) with simple imprisonment for a term up to six months, or with fine, or with both, where the amount of tax, which would have been evaded if “(2) No assessment under any of the provisions of this Act shall be the statement or account had been accepted as true, exceeds ten lakh rupees invalid on the ground of any mistake, defect or omission in respect of but does not exceed fifty lakh rupees; or quoting of a computer generated Document Identification Number, if the assessment order is referenced by such number in any manner.”.

Amendment 102. In section 483 of the Income-tax Act, in sub-section (1), for the Amendment 107. In section 536 of the Income-tax Act, in sub-section (2),–– of section words “rigorous imprisonment for a term which shall not be less than three of section

483. 536. months but which may extend to two years and with fine”, the words “simple imprisonment for a term up to two years and with fine” shall be substituted.

(i) in the opening portion, for the word, brackets and figure “sub-section

(3)”, the word, brackets and figure “sub-section (4)” shall be substituted;

Amendment 103. In section 484 of the Income-tax Act, for the longline, the following of section longline shall be substituted, namely:––

(ii) for clause (h), the following clause shall be substituted, namely:—

484. “he shall be punishable — “(h) where any sum has been allowed as a deduction or has not been included in the total income of any person, either on account of fulfillment

(i) with simple imprisonment for a term up to two years, or with of certain conditions or for any other reason, for any tax year beginning fine, or with both, where the amount of tax, penalty or interest which before the 1st April, 2026, and such sum was required to be included in would have been evaded, if the declaration, account or statement had the total income of any subsequent tax year including beginning on or been accepted as true, or which is wilfully attempted to be evaded, after the 1st April, 2026 under the repealed Income-tax Act, if it had not exceeds fifty lakh rupees; or been so repealed, on account of violation of such conditions or for any other reason, then such sum shall be––

(ii) with simple imprisonment for a term up to six months, or with fine, or with both, where the amount of tax, penalty or interest which

(i) deemed to be the income of such subsequent tax year; and would have been evaded, if the declaration, account or statement had been accepted as true, or which is wilfully attempted to be evaded,

(ii) included in the total income of the said person under the same exceeds ten lakh rupees but does not exceed fifty lakh rupees; or head of income as it would have been included under the repealed Income-tax Act;”;

(iii) with fine, in any other case.”.88 88 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—

(iii) in clause (l), for sub-clauses (i) and (ii), the following sub-clauses shall be substituted, namely:–– “(i) shall be deemed to be the amount eligible for credit under corresponding provisions or section 206(3) or (4) of this Act, as the case may be in the case of said assessee; and

(ii) credit for the tax paid under the repealed Income-tax Act shall be allowed under this Act for the period for which it would have been allowed under the repealed Income–tax Act if the assessee otherwise continues to satisfy the conditions as specified in the corresponding provisions or

section 206(3) or (4) of this Act, as the case may be in such tax years;”.

Amendment 108. In Schedule III to the Income-tax Act, in the Table, after serial of Schedule number 38 and the entries relating thereto, the following shall be inserted, III.

namely:— A B C D “38A. Disability An individual (a) The individual has Pension who has been a been invalided out of received member of the service in the armed (including armed forces forces on account of service (including bodily disability element and paramilitary attributable to, or disability forces) of the aggravated by such element). Union. service; and

(b) the individual has not retired on superannuation or otherwise.88 89 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 89

(iii) in clause (l), for sub-clauses (i) and (ii), the following sub-clauses 38B. Any interest An individual or Such interest is received shall be substituted, namely:–– on his legal heir. under the Motor compensation Vehicles Act, 1988 (59 “(i) shall be deemed to be the amount eligible for credit under amount of 1988).

corresponding provisions or section 206(3) or (4) of this Act, as the case awarded by may be in the case of said assessee; and Motor Accident

(ii) credit for the tax paid under the repealed Income-tax Act shall be Claims allowed under this Act for the period for which it would have been allowed Tribunal. under the repealed Income–tax Act if the assessee otherwise continues to satisfy the conditions as specified in the corresponding provisions or

section 206(3) or (4) of this Act, as the case may be in such tax years;”.

Amendment 108. In Schedule III to the Income-tax Act, in the Table, after serial of Schedule number 38 and the entries relating thereto, the following shall be inserted, 38C. Any income in An individual or Such award or agreement III. respect of any a Hindu is made under the

namely:— award or undivided provisions of the Right to agreement family. Fair Compensation and made on Transparency in Land account of Acquisition, A B C D compulsory Rehabilitation and “38A. Disability An individual (a) The individual has acquisition of Resettlement Act, 2013 Pension who has been a been invalided out of any land. (30 of 2013), except received member of the service in the armed under section 46 of the (including armed forces forces on account of said Act.”.

service (including bodily disability element and paramilitary attributable to, or disability forces) of the aggravated by such element). Union. service; and

(b) the individual Amendment 109. In Schedule IV to the Income-tax Act,–– has not retired on of Schedule superannuation or IV. otherwise. (a) in the Table, after serial number 13 and the entries relating thereto, the following shall be inserted, namely:–– A B C D “13A. Any income A foreign (a) Ownership of such capital arising on company, who goods, equipment or tooling account of is providing remains with the foreign providing capital goods, company;

capital goods, equipment or equipment or tooling to the (b) such capital goods, tooling to a contract equipment or tooling is under contract manufacturer the control and direction of the manufacturer, for use in contract manufacturer;

being a electronic90 90 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— company manufacturing (c) the contract manufacturer resident in in India. is located in a custom bonded India. area, that is, a warehouse referred to in section 65 of the Customs Act, 1962 (52 of

1962);

(d) the contract manufacturer produces electronic goods on behalf of the foreign company for a consideration;

(e) such exemption shall be available up to the tax year 2030-2031.

13B. Any income An individual, (a) Such individual, during which accrues being a non- the relevant tax year renders or arises resident for a any service in India in outside India, period of five connection with any scheme and is not consecutive as may be notified by the deemed to tax years Central Government;

accrue or arise immediately in India. preceding the (b) such exemption shall not tax year be available beyond a period during which of five consecutive tax years he visits India commencing from the first for the first tax year during which he time for visits India in connection with rendering such scheme; and services in India in (c) such other conditions, as connection may be prescribed.

with any scheme as may be notified by the Central Government.

13C. Any income A foreign (a) Such foreign company is accruing or company. notified by the Central arising in Government in this behalf;

India or deemed to (b) such foreign company accrue or arise does not own or operate any90 91 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 91 company manufacturing (c) the contract manufacturer in India by of the physical infrastructure resident in in India. is located in a custom bonded way of or any resources of the India. area, that is, a warehouse procuring data specified data centre;

referred to in section 65 of the centre services Customs Act, 1962 (52 of from a (c) all sales by such foreign

1962); specified data company to users located in centre. India are made through a

(d) the contract manufacturer reseller entity being an Indian produces electronic goods on company; behalf of the foreign company for a consideration; (d) such foreign company maintains and furnishes such

(e) such exemption shall be information in such form and available up to the tax year manner, as may be 2030-2031. prescribed; and 13B. Any income An individual, (a) Such individual, during (e) such exemption shall be which accrues being a non- the relevant tax year renders available up to tax year or arises resident for a any service in India in ending on the 31st March, outside India, period of five connection with any scheme 2047.”;

and is not consecutive as may be notified by the deemed to tax years Central Government; accrue or arise immediately (b) after Note 2 below the Table, the following Note shall be inserted, in India. preceding the (b) such exemption shall not namely:–– tax year be available beyond a period during which of five consecutive tax years ‘Note 3: For the purposes of Sl.No.13C,–– he visits India commencing from the first for the first tax year during which he (a) “data centre” means a dedicated secure space within a time for visits India in connection with building or centralised location where computing and networking rendering such scheme; and equipment is concentrated for the purpose of collecting, storing, services in processing, distributing or allowing access to large amounts of data;

India in (c) such other conditions, as connection may be prescribed. (b) “data centre services” means the services provided by a data with any centre through the use of physical infrastructure including land, scheme as buildings, mechanical electrical power equipments, cooling system, may be security and information technology infrastructure including servers, notified by the computers, storage systems, operating systems, security solutions, Central network and associated software platforms, networking and other Government. equipment, human resource in India;

13C. Any income A foreign (a) Such foreign company is (c) “specified data centre” means a data centre which is–– accruing or company. notified by the Central arising in Government in this behalf; (i) set up under an approved scheme and is notified in this India or behalf by the Central Government in the Ministry of Electronics deemed to (b) such foreign company and Information Technology; and accrue or arise does not own or operate any92 92 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—

(ii) owned and operated by an Indian company.’.

Amendment 110. In Schedule VI to the Income-tax Act, in the Table, in Note 1, in of Schedule clause (g),–– VI.

(a) for the long line, the following item shall be substituted, namely:–– “(C) of which all the units other than the unit held by a sponsor or manager are held by non-residents except,––

(I) where such non-resident becomes resident under section 6(2) or (3) or (4) or (5) or (6) or (7) in any tax year subsequent to that tax year; and

(II) the number of units held by such resident unit holder or holders do not exceed 5% of the total units issued and shall fulfil such other conditions as may be prescribed; or”;

(b) in sub-clause (ii), in item (A), for the figures “2025”, the figures “2030” shall be substituted.

Amendment 111. In Schedule XI to the Income-tax Act,–– of Schedule XI.

(a) in Part A,––

(i) in paragraph 4,––

(A) clause (c) shall be omitted;

(B) for clause (f), the following clause shall be substituted,

namely:— “(f) the fund shall be a fund––

(i) of an establishment to which the provisions of section 1(3) of the Employees’ Provident Funds and Miscellaneous 19 of 1952.

Provisions Act, 1952 apply; or

(ii) of an establishment notified by the Central Provident Fund Commissioner under section 1(4) of the said Act, and such establishment shall obtain exemption under section 17 of the said Act from the operation of all or any of the provisions of any scheme as referred to in that section;”;

(ii) in paragraph 5, sub-paragraph (4) shall be omitted;93 92 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 93

(ii) owned and operated by an Indian company.’.

(iii) for paragraph 6, the following paragraph shall be substituted,

namely:— Amendment 110. In Schedule VI to the Income-tax Act, in the Table, in Note 1, in of Schedule clause (g),–– VI. “6. Employer’s annual contributions, when deemed to be income received by employee.—The portion of the annual accretion

(a) for the long line, the following item shall be substituted, namely:–– in the tax year to the balance of an employee in a recognised provident fund consisting of interest credited on the balance to the “(C) of which all the units other than the unit held by a sponsor or credit of an employee in so far as it is allowed at a rate exceeding manager are held by non-residents except,–– such rate as fixed by the Central Government by notification, shall be deemed to have been received by the employee and included in

(I) where such non-resident becomes resident under section 6(2) his total income for that tax year and shall be liable to income-tax.”; or (3) or (4) or (5) or (6) or (7) in any tax year subsequent to that tax year; and

(b) in Part C, in paragraph 1,—

(II) the number of units held by such resident unit holder or holders

(i) clause (d) shall be omitted. do not exceed 5% of the total units issued and shall fulfil such other conditions as may be prescribed; or”;

(ii) for clause (e), the following clause shall be substituted, namely:—

(b) in sub-clause (ii), in item (A), for the figures “2025”, the figures “(e) to regulate investment or deposit of the moneys of a “2030” shall be substituted. recognised or an approved fund;”.

Amendment 111. In Schedule XI to the Income-tax Act,–– Amendment 112. In Schedule XII to the Income-tax Act, in Part A, after serial number of Schedule XI. of Schedule 27 and the entries relating thereto, the following shall be inserted, namely:–– XII.

(a) in Part A,–– “28. Beryllium bearing minerals.

(i) in paragraph 4,–– 29. Glauconite.

30. Graphite.

(A) clause (c) shall be omitted; 31. Indium bearing minerals.

32. Lithium bearing minerals.

(B) for clause (f), the following clause shall be substituted, 33. Niobium bearing minerals.

namely:— 34. Potash.

35. Rhenium bearing minerals. “(f) the fund shall be a fund–– 36. Tantalum bearing minerals.”.

(i) of an establishment to which the provisions of section Amendment 113. In Schedule XIV to the Income-tax Act, in paragraph 4,–– 1(3) of the Employees’ Provident Funds and Miscellaneous of Schedule 19 of 1952. XIV.

Provisions Act, 1952 apply; or

(i) in sub-paragraph (1), in clause (a), for the words “this rule”, the

(ii) of an establishment notified by the Central Provident words “this paragraph” shall be substituted;

Fund Commissioner under section 1(4) of the said Act,

(ii) after sub-paragraph (2), the following sub-paragraph shall be and such establishment shall obtain exemption under section 17 of inserted, namely:–– the said Act from the operation of all or any of the provisions of any scheme as referred to in that section;”;

“(3) The amount not deductible under sub-clause (i) or (ii) of

section 35(b), which is added under sub-paragraph (1)(a), shall be

(ii) in paragraph 5, sub-paragraph (4) shall be omitted;94 94 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— allowed subsequently as a deduction in a tax year in accordance with the provisions of the said sub-clause, as the case may be.”.

CHAPTER IV THE FOREIGN ASSETS OF SMALL TAXPAYERS DISCLOSURE SCHEME, 2026 Short title 114. (1) This Scheme may be called the Foreign Assets of Small and Taxpayers Disclosure Scheme, 2026. commencem ent.

(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

Definitions. 115. (1) In this Scheme, unless the context otherwise requires,—

(a) “assessee” means a person,—

(i) being a resident in India within the meaning of section 6 of the Income-tax Act, 1961 in the previous year; or 43 of 1961.

(ii) being a non-resident or not ordinarily resident in India within the meaning of clause (6) of section 6 of the said Act in the previous year, who was resident in India either––

(A) in the previous year to which the income referred to in

section 4 of the Black Money (Undisclosed Foreign Income and 22 of 2015.

Assets) and Imposition of Tax Act, 2015 relates; or

(B) in the previous year in which the undisclosed asset located outside India was acquired;

(b) “assessment” includes reassessment;

(c) “assessment year” shall have the same meaning as assigned to it in 43 of 1961. clause (9) of section 2 of the Income-tax Act, 1961;

(d) “Board” means the Central Board of Direct Taxes constituted under 54 of 1963.

section 3 of the Central Boards of Revenue Act, 1963;

(e) “declarant” means a person who files declaration under section 116;

(f) “declaration” means the declaration filed under section 116;94 95 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 95 allowed subsequently as a deduction in a tax year in accordance with (g) “last date” means such date as may be notified by the Central the provisions of the said sub-clause, as the case may be.”. Government in the Official Gazette;

CHAPTER IV (h) “prescribed” means prescribed by rules made under this Act;

THE FOREIGN ASSETS OF SMALL TAXPAYERS DISCLOSURE (i) “previous year” shall have the same meaning as assigned to it in 43 of 1961.

SCHEME, 2026 clause (34) of section 2 of the Income-tax Act, 1961;

Short title 114. (1) This Scheme may be called the Foreign Assets of Small (j) “undisclosed asset located outside India” means an asset (including and Taxpayers Disclosure Scheme, 2026. financial interest in any entity) located outside India, held by the assessee commencem in his name or in respect of which he is a beneficial owner, and he has no ent.

explanation about the source of investment in such asset or the explanation

(2) It shall come into force on such date as the Central Government may, given by him, is in the opinion of the Assessing Officer, unsatisfactory; by notification in the Official Gazette, appoint.

(k) “undisclosed foreign income” means the total amount of income of Definitions. 115. (1) In this Scheme, unless the context otherwise requires,— an assessee from a source located outside India which was chargeable to 43 of 1961.

tax in India but has not been offered to tax under the Income-tax Act, 1961;

(a) “assessee” means a person,— and

(i) being a resident in India within the meaning of section 6 of the (l) “value of the asset” means the fair market value of the asset Income-tax Act, 1961 in the previous year; or 43 of 1961. determined in such manner as may be prescribed.

(ii) being a non-resident or not ordinarily resident in India within (2) Words and expressions used herein and not defined but defined in the the meaning of clause (6) of section 6 of the said Act in the previous Income-tax Act, 1961 or the Black Money (Undisclosed Foreign Income and 43 of 1961.

22 of 2015. year, who was resident in India either–– Assets) and Imposition of Tax Act, 2015 or the Income-tax Act, 2025 shall 30 of 2025. have the meanings respectively assigned to them in those Acts.

(A) in the previous year to which the income referred to in

section 4 of the Black Money (Undisclosed Foreign Income and 22 of 2015. Declaration 116. Subject to the provisions of this Scheme, any person may make, on Assets) and Imposition of Tax Act, 2015 relates; or by declarant. or after the date of commencement of this Scheme but on or before the last date, a declaration, for any previous year, in respect of any income or asset

(B) in the previous year in which the undisclosed asset located referred to in section 117, where–– outside India was acquired;

(a) he has failed to furnish a return under section 139 of the Income-tax 43 of 1961.

(b) “assessment” includes reassessment; Act, 1961; or

(c) “assessment year” shall have the same meaning as assigned to it in 43 of 1961. (b) he has failed to disclose such asset or income, in a return of income clause (9) of section 2 of the Income-tax Act, 1961; furnished by him under the Income-tax Act, 1961 before the date of 43 of 1961.

commencement of this Scheme; or

(d) “Board” means the Central Board of Direct Taxes constituted under 54 of 1963.

section 3 of the Central Boards of Revenue Act, 1963; (c) such asset or income has escaped assessment within the meaning of

section 147 of the Income-tax Act, 1961. 43 of 1961.

(e) “declarant” means a person who files declaration under section 116;

Amount 117. The declaration referred to in section 116 may be filed in respect of

(f) “declaration” means the declaration filed under section 116; payable by assets or income as specified in column (2) of the Table below and in respect declarant. of such assets or income, the amount payable by the declarant under this96 96 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— Scheme shall be as specified in column (3), subject to the conditions in column (4), of the said Table:

TABLE Sl. Type of assets or Amount Conditions No. income payable

(1) (2) (3) (4)

1. (a) Undisclosed asset Aggregate of,– The aggregate value located outside India; (i) tax at of the undisclosed or the rate of asset located outside

(b) undisclosed thirty per cent. India and the foreign income. of the value of undisclosed foreign the undisclosed income does not asset located exceed one crore outside India as rupees. on the 31st March, 2026;

(ii) tax at the rate of thirty per cent. of the undisclosed foreign income; and

(iii) an amount equal to one hundred per cent. of tax determined in clauses (i) and

(ii).

2. (a) Asset located A fee of one The value of the asset outside India acquired lakh rupees. located outside India from income accruing does not exceed five or arising outside crore rupees.

India, by an assessee, during the period in which such assessee was a non-resident, but such assets were not declared by him in the relevant Schedule in the return of96 97 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 97 Scheme shall be as specified in column (3), subject to the conditions in income on becoming a column (4), of the said Table: resident; or

(b) asset located outside India acquired TABLE from income which has been offered to tax Sl. Type of assets or Amount Conditions under the Income-tax No. income payable Act, 1961 (43 of

(1) (2) (3) (4) 1961) by the assessee,

1. (a) Undisclosed asset Aggregate of,– The aggregate value but such assets were located outside India; (i) tax at of the undisclosed not declared by him in or the rate of asset located outside the relevant Schedule

(b) undisclosed thirty per cent. India and the in the return of foreign income. of the value of undisclosed foreign income. the undisclosed income does not asset located exceed one crore outside India as rupees.

on the 31st Manner of 118. (1) A declaration under section 116 shall be made complete in all March, 2026; making respects to the prescribed income-tax authority, in such form and shall be declaration.

(ii) tax at verified in such manner, as may be prescribed. the rate of thirty per cent. (2) The verification referred to in sub-section (1) shall be made of the electronically, so as to verify that–– undisclosed foreign (a) the assessee making the declaration is an eligible assessee; and income; and

(iii) an (b) the declaration of income or assets is in accordance with the amount equal provisions of this Scheme. to one hundred per cent. of tax (3) The declaration made under sub-section (1) shall be deemed to be determined in invalid, if –– clauses (i) and

(ii). (a) any material particular furnished in the declaration is found to be false at any stage; or

2. (a) Asset located A fee of one The value of the asset outside India acquired lakh rupees. located outside India (b) the declarant violates any of the conditions referred to in this from income accruing does not exceed five Scheme.

or arising outside crore rupees.

India, by an assessee, Procedure 119. (1) After electronic verification of the declaration as specified in sub- during the period in relating to section (2) of section 118, the amount payable by the assessee shall be manner of which such assessee communicated electronically, within a period of one month from the end of payment.

was a non-resident, the month in which the declaration is made, by way of an order in such form but such assets were and manner, as may be prescribed. not declared by him in the relevant Schedule (2) The assessee shall pay the amount determined under sub-section (1) in the return of within a period of two months from the end of the month in which the order98 98 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— referred to in the said sub-section was received by him and the payment shall be made in such manner, as may be prescribed.

(3) Where the assessee fails to pay the amount determined under sub-

section (1) or any part thereof within the period specified in sub-section (2), the assessee may pay such amount within a further period not exceeding two months, along with simple interest at the rate of one per cent. for every month or part of a month on such amount.

(4) The assessee shall, upon making the payment under sub-section (2) or sub-section (3), as the case may be, intimate the details of such payment to the prescribed income-tax authority, in such form and manner, as may be prescribed, within the extended period specified in sub-section (3).

(5) Upon receipt of the intimation referred to in sub-section (4), where the intimation is in accordance with the order under sub-section (1), an order certifying the payment of the amount as per the declaration, shall be communicated electronically to the assessee, in such form and manner, as may be prescribed, within one month from the end of the month of receipt of such intimation.

(6) Every order made under sub-section (5) shall be conclusive as to the matters stated therein.

Any income 120. The income or the amount of investment in an asset, which has been or asset declared in the manner provided in section 118 shall not be included in the declared not total income of the declarant for any assessment year under the Income-tax to be Act, 1961 or the Black Money (Undisclosed Foreign Income and Assets) and included in 43 of 1961.

total income. Imposition of Tax Act, 2015, if the declarant makes the payment of amount 22 of 2015. referred to in section 119 within the extended period specified in sub-section

(3) of the said section.

Any income 121. In respect of income or asset declared or any amount paid thereon, or asset the declarant shall not be entitled to claim for rectification or revision of any declared not 43 of 1961. assessment made under the Income-tax Act, 1961 or the Black Money to affect 22 of 2015.

(Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 finality of completed or claim any set off or relief in any appeal, reference or other proceeding in assessments. relation to any such assessment.

Amount paid 122. No amount paid under section 119 in pursuance of a declaration in pursuance made in the manner provided in section 118 shall be refundable. of declaration non- refundable.

Grant of 123. Notwithstanding anything contained in the Black Money immunity (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, 22 of 2015.98 99 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 99 referred to in the said sub-section was received by him and the payment shall from penalty a declarant who makes a valid declaration under this Scheme and pays any be made in such manner, as may be prescribed. and amount, whether as tax, fee or otherwise, as the case may be, in accordance prosecution.

with the provisions of this Scheme, shall be granted immunity from the levy

(3) Where the assessee fails to pay the amount determined under sub- of any further tax or penalty and also from prosecution under the said Act in

section (1) or any part thereof within the period specified in sub-section (2), respect of income or asset so declared, for the previous year ending on the the assessee may pay such amount within a further period not exceeding two 31st March, 2026 or any earlier previous year.

months, along with simple interest at the rate of one per cent. for every month or part of a month on such amount. Non- 124. The provisions of this Scheme shall not apply in respect of— application of Scheme.

(4) The assessee shall, upon making the payment under sub-section (2) or sub-section (3), as the case may be, intimate the details of such payment to (a) any income or asset which represents, directly or indirectly, the prescribed income-tax authority, in such form and manner, as may be proceeds of crime in respect of which proceedings have been initiated, or 15 of 2003.

prescribed, within the extended period specified in sub-section (3). pending under the Prevention of Money-laundering Act, 2002; or

(5) Upon receipt of the intimation referred to in sub-section (4), where the (b) any income or asset relating to an assessment year for which intimation is in accordance with the order under sub-section (1), an order assessment proceedings have been completed under the Black Money certifying the payment of the amount as per the declaration, shall be (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 22 of 2015.

communicated electronically to the assessee, in such form and manner, as 2015. may be prescribed, within one month from the end of the month of receipt of such intimation. Effect of 125. Where a declaration of any income or asset is made under this declaration Scheme and assessment proceedings under the Income-tax Act, 1961 or the 43 of 1961.

on pending

(6) Every order made under sub-section (5) shall be conclusive as to the Black Money (Undisclosed Foreign Income and Assets) and Imposition of assessment 22 of 2015. matters stated therein. Tax Act, 2015 are pending in respect of such income or assets, the Assessing proceedings.

Officer shall take such declaration into account while finalising such Any income 120. The income or the amount of investment in an asset, which has been assessment order. or asset declared in the manner provided in section 118 shall not be included in the declared not total income of the declarant for any assessment year under the Income-tax Power of 126. (1) The Board may, from time to time, issue such directions or orders to be Act, 1961 or the Black Money (Undisclosed Foreign Income and Assets) and Board to to the prescribed income-tax authorities, as it may deem fit:

included in 43 of 1961. issue total income. Imposition of Tax Act, 2015, if the declarant makes the payment of amount 22 of 2015. directions, referred to in section 119 within the extended period specified in sub-section etc.

(3) of the said section.

Provided that no direction or order shall be issued so as to require that a Any income 121. In respect of income or asset declared or any amount paid thereon, particular case be disposed of in a particular manner.

or asset the declarant shall not be entitled to claim for rectification or revision of any declared not 43 of 1961. assessment made under the Income-tax Act, 1961 or the Black Money (2) Without prejudice to the generality of the foregoing power, the Board to affect 22 of 2015.

(Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 may, if it considers necessary or expedient so to do, for the purposes of this finality of completed or claim any set off or relief in any appeal, reference or other proceeding in Scheme, including collection of revenue, issue from time to time, general or assessments. relation to any such assessment. special orders in respect of any class of cases, setting forth directions or instructions as to the guidelines, principles or procedures to be followed by Amount paid 122. No amount paid under section 119 in pursuance of a declaration the prescribed income-tax authorities in any work relating to this Act, in pursuance made in the manner provided in section 118 shall be refundable. including collection of revenue and issue such order, by way of relaxation of of any provision of this Chapter or otherwise, if the Board is of the opinion that declaration it is necessary in the public interest so to do.

non- refundable.

Power to 127. (1) The Central Government may, by notification in the Official Grant of 123. Notwithstanding anything contained in the Black Money make rules. Gazette, make rules for carrying out the provisions of this Scheme.

immunity (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, 22 of 2015.100 100 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—

(2) Without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:—

(a) the form in which a declaration may be made and the manner of its verification under sub-section (1) of section 118;

(b) the form and manner in which order shall be passed under sub-

section (1) of section 119;

(d) the form and manner of intimation of payment under sub-section

(4) of section 119;

(e) the form and manner in which the order certifying the payment shall be communicated under sub-section (5) of section 119;

(f) the manner of calculating the value of the asset under this Scheme;

(g) the manner of calculating the amount payable under this Scheme;

(h) any other matter which is to be, or may be, prescribed, or in respect of which provision is to be made, by rules for carrying out the provisions of this Scheme.

(3) Every rule made by the Central Government under this Scheme shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days, which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

Power to 128. (1) If any difficulty arises in giving effect to the provisions of this remove Scheme, the Central Government may, by order, not inconsistent with the difficulties. provisions of this Scheme, remove the difficulty.

(2) No order under sub-section (1) shall be made after the expiry of period of two years from the date on which provisions of this Scheme come into force.100 Sec. 2] THE GAZETTE OF IND1 I0 A1 E XTRAORDINARY 101

(3) Every order made under sub-section (1) shall, as soon as may be after

(2) Without prejudice to the generality of the foregoing power, such rules it is made, be laid before each House of Parliament. may provide for all or any of the following matters, namely:—

CHAPTER V

(a) the form in which a declaration may be made and the manner of its verification under sub-section (1) of section 118;

INDIRECT TAXES

(b) the form and manner in which order shall be passed under sub- Customs

section (1) of section 119;

Amendment 129. In the Customs Act, 1962 (hereinafter referred to as the Customs 52 of 1962.

(c) the manner of making payment under sub-section (2) of section of section 1. Act), in section 1, in sub-section (2), after the words “whole of India”, the 119; words “, fishing and fishing related activities by Indian-flagged fishing vessels beyond territorial waters of India” shall be inserted.

(d) the form and manner of intimation of payment under sub-section

(4) of section 119;

Amendment 130. In section 2 of the Customs Act, clause (28A) shall be renumbered

(e) the form and manner in which the order certifying the payment shall of section 2. as clause (28B) thereof and before clause (28B) as so renumbered, the be communicated under sub-section (5) of section 119; following clause shall be inserted, namely:––

(f) the manner of calculating the value of the asset under this Scheme; ‘(28A) “Indian-flagged fishing vessel” means a vessel which is used or intended to be used for the purpose of fishing in the seas and entitled to

(g) the manner of calculating the amount payable under this Scheme; fly the flag of India;’.

(h) any other matter which is to be, or may be, prescribed, or in respect of which provision is to be made, by rules for carrying out the provisions Amendment 131. In section 28 of the Customs Act, in sub-section (6), in clause (i), of this Scheme. of section 28. for the words “be deemed to be conclusive as to the matters stated therein”, the words, brackets and figure “, be deemed to be conclusive as to the matters

(3) Every rule made by the Central Government under this Scheme shall stated therein and penalty so paid under sub-section (5), on determination be laid, as soon as may be after it is made, before each House of Parliament, under this sub-section, shall also be deemed to be a charge for non-payment while it is in session, for a total period of thirty days, which may be comprised of duty” shall be substituted.

in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions Amendment 132. In the Customs Act, in section 28J, in sub-section (2),— aforesaid, both Houses agree in making any modification in the rule or both of section 28J.

Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, (a) for the words “three years”, the words “five years” shall be however, that any such modification or annulment shall be without prejudice substituted;

to the validity of anything previously done under that rule.

(b) for the proviso, the following proviso shall be substituted, Power to 128. (1) If any difficulty arises in giving effect to the provisions of this namely:–– remove Scheme, the Central Government may, by order, not inconsistent with the difficulties.

provisions of this Scheme, remove the difficulty. “Provided that in respect of any advance ruling in force on the date on which the Finance Bill, 2026 receives the assent of the President, the

(2) No order under sub-section (1) shall be made after the expiry of period Authority shall, upon a request by the applicant, extend the validity for of two years from the date on which provisions of this Scheme come into five years from the date of the ruling.”.

force.102 102 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— Insertion of 133. After section 56 of the Customs Act, the following section shall be new section inserted, namely:–– 56A.

Special “56A. (1) Notwithstanding anything contained in this Act or in any provision for other law for the time being in force, fish harvested by an Indian-flagged fishing and fishing vessel beyond territorial waters of India,–– fishing related activities.

(a) may be brought into India free of duty;

(b) that has landed at foreign port may be treated as export of goods, in such manner and subject to such conditions as may be provided by rules.

(2) The Board may make regulations providing for the form and manner of making an entry in respect of fish harvested including its declaration, custody, examination, assessment of duty, clearance, transit or transhipment.”.

Substitution 134. In the Customs Act, for section 67, the following section shall be substituted,

of new namely:––

section for

section 67.

Removal of “67. The owner of any warehoused goods may remove them from goods from one warehouse to another, subject to such conditions as may be one prescribed.”. warehouse to another.

Amendment 135. In section 84 of the Customs Act, in clause (b), for the words “the of section examination”, the words “the custody, examination” shall be substituted.

84.

Customs Tariff Amendment 136. In the Customs Tariff Act, 1975, the First Schedule shall–– 51 of 1975. of First Schedule.

(a) be amended in the manner specified in the Second Schedule;

(b) with effect from the 1st day of April, 2026, be also amended in the manner specified in the Third Schedule; and

(c) with effect from the 1st day of May, 2026, be also amended in the manner specified in,–102 103 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 103 Insertion of 133. After section 56 of the Customs Act, the following section shall be (i) the Fourth Schedule; and new section inserted, namely:–– 56A.

(ii) the Fifth Schedule.

Special “56A. (1) Notwithstanding anything contained in this Act or in any Central Goods and Services Tax provision for other law for the time being in force, fish harvested by an Indian-flagged fishing and fishing vessel beyond territorial waters of India,–– fishing Amendment 137. In the Central Goods and Services Tax Act, 2017, (hereinafter related of section referred to as the Central Goods and Services Tax Act), in section 15, in sub- activities. 15.

section (3), for clause (b), the following clause shall be substituted, namely:–

(a) may be brought into India free of duty; –

(b) that has landed at foreign port may be treated as export of goods, “(b) after the supply has been effected, if for such discount, a credit note has been issued by the supplier and input tax credit as is attributable to such discount has been reversed by the recipient of the supply, in in such manner and subject to such conditions as may be provided by accordance with the provisions of section 34.”.

rules.

Amendment 138. In section 34 of the Central Goods and Services Tax Act, in sub-

(2) The Board may make regulations providing for the form and of section section (1), after the words “both supplied are found to be deficient”, the

34. manner of making an entry in respect of fish harvested including its words, brackets, letter and figures “or where a discount referred to in clause declaration, custody, examination, assessment of duty, clearance, transit (b) of sub-section (3) of section 15 is given” shall be inserted.

or transhipment.”.

Amendment 139. In section 54 of the Central Goods and Services Tax Act,–– Substitution 134. In the Customs Act, for section 67, the following section shall be substituted, of section

of new namely:–– 54.

section for (a) in sub-section (6), after the words “supply of goods or services or

section 67. both”, the words, brackets and figures “or of unutilised input tax credit Removal of “67. The owner of any warehoused goods may remove them from allowed under clause (ii) of the first proviso to sub-section (3)” shall be goods from one warehouse to another, subject to such conditions as may be inserted;

one prescribed.”. warehouse

(b) in sub-section (14), after the words, brackets and figures “sub- to another.

section (5) or sub-section (6)”, the words “, other than cases where refund of tax is claimed on account of goods exported out of India Amendment 135. In section 84 of the Customs Act, in clause (b), for the words “the with payment of tax,” shall be inserted.

of section examination”, the words “the custody, examination” shall be substituted.

84.

Amendment 140. In section 101A of the Central Goods and Services Tax Act, after Customs Tariff of section sub-section (1), the following sub-section shall be inserted, namely:–– 101A.

Amendment 136. In the Customs Tariff Act, 1975, the First Schedule shall–– 51 of 1975. “(1A) Notwithstanding anything contained in sub-section (1), till the of First Schedule. National Appellate Authority is constituted under that sub-section, the

(a) be amended in the manner specified in the Second Schedule; Government, may on the recommendations of the Council, by

notification, empower any existing Authority constituted under any law

(b) with effect from the 1st day of April, 2026, be also amended in for the time being in force to hear appeals made under section 101B and the manner specified in the Third Schedule; and in such case,––

(c) with effect from the 1st day of May, 2026, be also amended in (a) the provisions of sub-sections (2) to (13) shall not apply; and the manner specified in,–104 104 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—

(b) any reference to the National Appellate Authority under this

Chapter shall be construed as a reference to such Authority.

Explanation.–– For the purposes of this sub-section, the expression “existing Authority” shall include a Tribunal.”.

Integrated Goods and Services Tax Amendment 141. In section 13 of the Integrated Goods and Services Tax Act, 2017, 13 of 2017. of section in sub-section (8), clause (b) shall be omitted.

13.

CHAPTER VI MISCELLANEOUS PART I AMENDMENT TO THE FINANCE ACT, 2001 Amendment 142. In the Finance Act, 2001, the Seventh Schedule shall be amended of Seventh in the manner specified in the Sixth Schedule, with effect from the 1st day of Schedule to May, 2026.

Act 14 of

2001.

PART II AMENDMENTS TO THE FINANCE (NO.2) ACT, 2004 Amendment 143. In the Finance (No.2) Act, 2004, in section 98, in the Table, against of Act 23 of serial number 4,––

2004.

(i) against entry (a) relating to sale of an option in securities, in column

(3), for the figures and word “0.1 per cent.”, the figures and word “0.15 per cent.” shall be substituted;

(ii) against entry (b) relating to sale of an option in securities, where option is exercised, in column (3), for the figures and word “0.125 per cent.”, the figures and word “0.15 per cent.” shall be substituted;

(iii) against entry (c) relating to sale of a futures in securities, in column

(3), for the figures and word “0.02 per cent.”, the figures and word “0.05 per cent.” shall be substituted.

PART III AMENDMENTS TO THE BLACK MONEY (UNDISCLOSED FOREIGN INCOME AND ASSETS) AND IMPOSITION OF TAX ACT, 2015105 104 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 105

(b) any reference to the National Appellate Authority under this Amendment 144. In the Black Money (Undisclosed Foreign Income and Assets) and

Chapter shall be construed as a reference to such Authority. of Act 22 of Imposition of Tax Act, 2015,––

2015.

Explanation.–– For the purposes of this sub-section, the expression (a) in section 49, after the proviso, the following proviso shall be “existing Authority” shall include a Tribunal.”. inserted and shall be deemed to have been inserted with effect from the 1st day of October, 2024, namely:–– Integrated Goods and Services Tax “Provided further that this section shall not apply in respect of an asset Amendment 141. In section 13 of the Integrated Goods and Services Tax Act, 2017, 13 of 2017. or assets (other than immovable property), where the aggregate value of of section in sub-section (8), clause (b) shall be omitted. such asset or assets does not exceed twenty lakh rupees.”;

13.

CHAPTER VI

(b) in section 50, the following proviso shall be inserted and shall be deemed to have been inserted with effect from the 1st day of October, MISCELLANEOUS 2024, namely:–– PART I “Provided that this section shall not apply in respect of an asset or assets (other than immovable property), where the aggregate value of AMENDMENT TO THE FINANCE ACT, 2001 such asset or assets does not exceed twenty lakh rupees.”.

Amendment 142. In the Finance Act, 2001, the Seventh Schedule shall be amended of Seventh in the manner specified in the Sixth Schedule, with effect from the 1st day of Schedule to _______________________________ May, 2026.

Act 14 of

2001.

PART II Declaration under the Provisional Collection of Taxes Act, 2023 AMENDMENTS TO THE FINANCE (NO.2) ACT, 2004 It is hereby declared that it is expedient in the public interest that the provisions of sub-clause (a) of clause 136 of this Bill shall have immediate Amendment 143. In the Finance (No.2) Act, 2004, in section 98, in the Table, against 50 of 2023.

effect under the Provisional Collection of Taxes Act, 2023. of Act 23 of serial number 4,––

2004.

(i) against entry (a) relating to sale of an option in securities, in column ____________________________________

(3), for the figures and word “0.1 per cent.”, the figures and word “0.15 per cent.” shall be substituted;

(iii) against entry (c) relating to sale of a futures in securities, in column

(3), for the figures and word “0.02 per cent.”, the figures and word “0.05 per cent.” shall be substituted.

PART III AMENDMENTS TO THE BLACK MONEY (UNDISCLOSED FOREIGN INCOME AND ASSETS) AND IMPOSITION OF TAX ACT, 2015106 106 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— THE FIRST SCHEDULE (See sections 2 and 3) PART I A.–– INCOME-TAX UNDER THE INCOME-TAX ACT, 1961 Paragraph A

(I) In the case of every individual other than the individual referred to in items (II) and (III) of this Paragraph or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in section 2(31)(vii) of the Income-tax Act, 1961 43 of 1961.

(hereafter in this Part I-A referred to as the said Act), not being a case to which Paragraphs B, C, D and E of this Part applies,— Rates of income-tax

(1) where the total income does Nil; not exceed Rs. 2,50,000

(2) where the total income 5 per cent. of the amount by which exceeds Rs. 2,50,000 but does not the total income exceeds Rs. exceed Rs. 5,00,000 2,50,000;

(3) where the total income Rs. 12,500 plus 20 per cent. of the exceeds Rs. 5,00,000 but does not amount by which the total income exceed Rs. 10,00,000 exceeds ₹ 5,00,000;

(4) where the total income Rs. 1,12,500 plus 30 per cent. of the exceeds Rs.10,00,000 amount by which the total income exceeds Rs. 10,00,000.

(II) In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year,— Rates of income-tax

(1) where the total income does Nil; not exceed Rs. 3,00,000

(2) where the total income 5 per cent.of the amount by which the exceeds Rs. 3,00,000 but does total income exceeds Rs. 3,00,000; not exceed Rs. 5,00,000

(3) where the total income Rs. 10,000 plus 20 per cent.of the exceeds Rs. 5,00,000 but does amount by which the total income not exceed Rs. 10,00,000 exceeds Rs. 5,00,000;

(4) where the total income Rs. 1,10,000 plus 30 per cent.of the exceeds Rs. 10,00,000 amount by which the total income exceeds Rs. 10,00,000.106 107 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 107

(III) In the case of every individual, being a resident in India, who is of the THE FIRST SCHEDULE age of eighty years or more at any time during the previous year,— (See sections 2 and 3) Rates of income-tax PART I A.–– INCOME-TAX UNDER THE INCOME-TAX ACT, 1961

(1) where the total income does Nil;

Paragraph A not exceed Rs. 5,00,000

(2) where the total income 20 per cent.of the amount by which

(I) In the case of every individual other than the individual referred to in exceeds Rs. 5,00,000 but does the total income exceeds Rs. 5,00,000; items (II) and (III) of this Paragraph or Hindu undivided family or association not exceed Rs. 10,00,000 of persons or body of individuals, whether incorporated or not, or every artificial

(3) where the total income Rs. 1,00,000 plus 30 per cent.of the juridical person referred to in section 2(31)(vii) of the Income-tax Act, 1961 43 of 1961. exceeds Rs. 10,00,000 amount by which the total income (hereafter in this Part I-A referred to as the said Act), not being a case to which exceeds Rs. 10,00,000.

Paragraphs B, C, D and E of this Part applies,— Paragraph B Rates of income-tax In the case of every co-operative society,— Rates of income-tax

(1) where the total income does Nil; not exceed Rs. 2,50,000

(2) where the total income 5 per cent. of the amount by which (1) where the total income does not 10 per cent.of the total income; exceeds Rs. 2,50,000 but does not the total income exceeds Rs. exceed Rs. 10,000 exceed Rs. 5,00,000 2,50,000;

(3) where the total income Rs. 12,500 plus 20 per cent. of the (2) where the total income exceeds Rs. 1,000 plus 20 per cent.of the exceeds Rs. 5,00,000 but does not amount by which the total income Rs. 10,000 but does not exceed Rs. amount by which the total exceed Rs. 10,00,000 exceeds ₹ 5,00,000; 20,000 income exceeds Rs. 10,000;

(4) where the total income Rs. 1,12,500 plus 30 per cent. of the exceeds Rs.10,00,000 amount by which the total income (3) where the total income exceeds Rs. 3,000 plus 30 per cent.of the exceeds Rs. 10,00,000. Rs. 20,000 amount by which the total

(II) In the case of every individual, being a resident in India, who is of the income exceeds Rs. 20,000. age of sixty years or more but less than eighty years at any time during the Paragraph C previous year,— In the case of every firm,— Rates of income-tax Rate of income-tax

(1) where the total income does Nil;

On the whole of the total income 30 per cent. not exceed Rs. 3,00,000

(2) where the total income 5 per cent.of the amount by which the Paragraph D exceeds Rs. 3,00,000 but does total income exceeds Rs. 3,00,000;

In the case of every local authority,— not exceed Rs. 5,00,000

(3) where the total income Rs. 10,000 plus 20 per cent.of the Rate of income-tax exceeds Rs. 5,00,000 but does amount by which the total income not exceed Rs. 10,00,000 exceeds Rs. 5,00,000;

(4) where the total income Rs. 1,10,000 plus 30 per cent.of the On the whole of the total income 30 per cent.. exceeds Rs. 10,00,000 amount by which the total income Paragraph E exceeds Rs. 10,00,000.

In the case of a company,— Rates of income-tax108 108 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— I. In the case of a domestic company,—

(i) where its total turnover or the 25 per cent. of the total gross receipt in the previous year 2023- income;

24 does not exceed Rs. 400 crores;

(ii) other than that referred to in 30 per cent. of the total item (i) income.

II. In the case of a company other than a domestic company,—

(i) on so much of the total income 50 per cent.; as consists of,—

(a) royalties received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st March, 1961 but before the 1st April, 1976; or

(b) fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 29th February, 1964 but before the 1st April, 1976, and where such agreement has, in either case, been approved by the Central Government;

(ii) on the balance, if any, of the 35 per cent.. total income Paragraph F Surcharge on income-tax The amount of income-tax computed in accordance with Paragraphs A to E, or the provisions of section 111A or section 112 or section 112A of the said Act, in the case of person as specified in column B in Table 1 below, shall be increased by a surcharge, for the purposes of the Union, calculated at the rate or rates as specified in column C of the said Table, of such income-tax.

TABLE 1 Sl. Person Rate of surcharge No.108 109 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 109 I. In the case of a domestic A B C company,— 1. (i) Every individual; or (i) Where the total income (including dividend income or capital gains

(i) where its total turnover or the 25 per cent. of the total (ii) Hindu undivided under the provisions of sections gross receipt in the previous year 2023- income; family; or 111A, 112 and 112A of the said Act) 24 does not exceed Rs. 400 crores; exceeds Rs. 50,00,000 but does not

(iii) association of exceed Rs. 1,00,00,000, at the rate of

(ii) other than that referred to in 30 per cent. of the total persons, except in a case 10 per cent.; item (i) income. of an association of persons consisting of only (ii) where the total income (including II. In the case of a company other companies as its members, dividend income or capital gains than a domestic company,— whether incorporated or under the provisions of sections not; or 111A, 112 and 112A of the said Act)

(i) on so much of the total income 50 per cent.; exceeds Rs. 1,00,00,000 but does not as consists of,—

(iv) body of individuals, exceed Rs. 2,00,00,000, at the rate of whether incorporated or 15 per cent.;

(a) royalties received from not; or Government or an Indian concern in

(iii) where the total income pursuance of an agreement made by it

(v) every artificial (excluding dividend income or capital with the Government or the Indian juridical person referred to gains under the provisions of sections concern after the 31st March, 1961 in section 2(31)(vii) of the 111A, 112 and 112A of the said Act) but before the 1st April, 1976; or said Act. exceeds Rs. 2,00,00,000 but does not exceed Rs. 5,00,00,000, at the rate of

(b) fees for rendering technical services received from Government 25 per cent.; or an Indian concern in pursuance of an agreement made by it with the (iv) where the total income Government or the Indian concern (excluding dividend income or capital after the 29th February, 1964 but gains under the provisions of sections before the 1st April, 1976, 111A, 112 and 112A of the said Act) exceeds Rs. 5,00,00,000, at the rate of and where such agreement has, in 37 per cent.;

either case, been approved by the Central Government; (v) where the total income (including dividend income or capital gains

(ii) on the balance, if any, of the 35 per cent.. under the provisions of sections total income 111A, 112 and 112A of the said Act) Paragraph F exceeds Rs. 2,00,00,000, but is not covered in clauses (iii) and (iv), at the Surcharge on income-tax rate of 15 per cent.;

The amount of income-tax computed in accordance with Paragraphs A to E, or the provisions of section 111A or section 112 or section 112A of the (vi) where the total income includes said Act, in the case of person as specified in column B in Table 1 below, shall any dividend income or capital gains be increased by a surcharge, for the purposes of the Union, calculated at the rate under the provisions of sections or rates as specified in column C of the said Table, of such income-tax. 111A, 112 and 112A of the said Act, the rate of surcharge on the amount of income-tax computed in respect of that part of income shall not exceed 15 per cent.and the provisions of TABLE 1 clause (i) or (ii), as the case may be, Sl. Person Rate of surcharge shall apply accordingly.

No.110 110 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—

2. Association of persons (i) Where the total income exceeds consisting of only Rs. 50,00,000 but does not exceed Rs. companies as its members. 1,00,00,000, at the rate of 10 per cent.

(ii) where the total income exceeds Rs. 1,00,00,000, at the rate of 15 per cent.

3. Every co-operative (i) Where the total income exceeds Rs. society. 1,00,00,000 but does not exceed Rs.

10,00,00,000, at the rate of 7 per cent.

(ii) where the total income exceeds Rs. 10,00,00,000, at the rate of 12 per cent.

4. Every firm or local Where the total income exceeds Rs. authority. 1,00,00,000, at the rate of 12 per cent.

5. Every domestic company. (i) Where the total income exceeds Rs.

1,00,00,000 but does not exceed Rs.

10,00,00,000, at the rate of 7 per cent.

(ii) where the total income exceeds Rs. 10,00,00,000, at the rate of 12 per cent.

6. Every company, other (i) Where the total income exceeds Rs. than a domestic company. 1,00,00,000 but does not exceed Rs.

10,00,00,000, at the rate of 2 per cent.

(ii) where the total income exceeds Rs. 10,00,00,000, at the rate of 5 per cent.

Further, in respect of the persons mentioned in column B of the Table 2 below, having total income exceeding the amount as specified in column C of the said Table but does not exceed the amount specified in column D thereof, the total amount payable as income-tax and surcharge thereon shall not exceed

the amount determined as per the following formula:— W = U + V o o o where,–– W = the total amount beyond which the total amount payable as income- o tax and surcharge thereon shall not exceed;

U = the total amount payable as income-tax and surcharge, if applicable, o on an amount as specified in column C of the Table 2 below; and V = the total income – amount as specified in column C of the said Table.

o111 110 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 111

2. Association of persons (i) Where the total income exceeds TABLE 2 consisting of only Rs. 50,00,000 but does not exceed Rs.

Sl. Person Amount Amount companies as its members. 1,00,00,000, at the rate of 10 per cent.

No.

(ii) where the total income exceeds A B C D Rs. 1,00,00,000, at the rate of 15 per

1. Table 1: Sl. No. Rs. 50,00,000. Rs. 1,00,00,000. cent.

1.B.

Rs. 1,00,00,000. Rs. 2,00,00,000.

3. Every co-operative (i) Where the total income exceeds Rs. society. 1,00,00,000 but does not exceed Rs.

10,00,00,000, at the rate of 7 per cent.

Rs. 2,00,00,000. Rs. 5,00,00,000.

(ii) where the total income exceeds Rs. 5,00,00,000. - Rs. 10,00,00,000, at the rate of 12 per cent. 2. Table 1: Sl. No. Rs. 50,00,000. Rs. 1,00,00,000.

2.B.

4. Every firm or local Where the total income exceeds Rs. Rs. 1,00,00,000. - authority. 1,00,00,000, at the rate of 12 per cent.

3. Table 1: Sl. No. Rs. 1,00,00,000. Rs. 10,00,00,000.

3.B.

5. Every domestic company. (i) Where the total income exceeds Rs. Rs. 10,00,00,000. - 1,00,00,000 but does not exceed Rs.

4. Table 1: Sl. No. Rs. 1,00,00,000. - 10,00,00,000, at the rate of 7 per cent.

4.B.

(ii) where the total income exceeds 5. Table 1: Sl. No. Rs. 1,00,00,000. Rs. 10,00,00,000.

Rs. 10,00,00,000, at the rate of 12 per 5.B and 6.B.

Rs. 10,00,00,000. - cent.

B.–– INCOME-TAX UNDER THE INCOME-TAX ACT, 2025

6. Every company, other (i) Where the total income exceeds Rs.

Paragraph A than a domestic company. 1,00,00,000 but does not exceed Rs.

10,00,00,000, at the rate of 2 per cent.

(I) In the case of every individual other than the individual referred to

(ii) where the total income exceeds in items (II) and (III) of this Paragraph or Hindu undivided family or association Rs. 10,00,00,000, at the rate of 5 per of persons or body of individuals, whether incorporated or not, or every artificial cent.

juridical person referred to in section 2(77)(g) of the Income-tax Act, 2025 30 of 2025. (hereafter in this Part I-B referred to as the said Act), not being a case to which Further, in respect of the persons mentioned in column B of the Table 2 Paragraphs B, C, D and E of this Part applies,— below, having total income exceeding the amount as specified in column C of the said Table but does not exceed the amount specified in column D thereof, Rates of income-tax the total amount payable as income-tax and surcharge thereon shall not exceed

the amount determined as per the following formula:—

(1) where the total income Nil;

W = U + V o o o does not exceed ₹ 250000 where,–– (2) where the total income 5% of the amount by which the exceeds ₹ 250000 but does not total income exceeds ₹ 250000;

W = the total amount beyond which the total amount payable as income- o exceed ₹ 500000 tax and surcharge thereon shall not exceed;

(3) where the total income ₹ 12500 plus 20% of the amount U = the total amount payable as income-tax and surcharge, if applicable, exceeds ₹ 500000 but does not by which the total income exceeds o on an amount as specified in column C of the Table 2 below; and exceed ₹ 1000000 ₹ 500000;

V = the total income – amount as specified in column C of the said Table. o112 112 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—

(4) where the total income ₹ 112500 plus 30% of the amount exceeds ₹ 1000000 by which the total income exceeds ₹ 1000000.

(II) In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the tax year,— Rates of income-tax

(1) where the total income does Nil; not exceed ₹ 300000

(2) where the total income 5% of the amount by which the exceeds ₹ 300000 but does not total income exceeds ₹ 300000; exceed ₹ 500000

(3) where the total income ₹ 10000 plus 20% of the amount exceeds ₹ 500000 but does not by which the total income exceeds exceed ₹ 1000000 ₹ 500000;

(4) where the total income ₹ 110000 plus 30% of the amount exceeds ₹ 1000000 by which the total income exceeds ₹ 1000000.

(III) In the case of every individual, being a resident in India, who is of the age of eighty years or more at any time during the tax year,— Rates of income-tax

(1) where the total income does Nil; not exceed ₹ 500000

(2) where the total income 20% of the amount by which the exceeds ₹ 500000 but does not total income exceeds ₹ 500000; exceed ₹ 1000000

(3) where the total income ₹ 100000 plus 30% of the amount by exceeds ₹ 1000000 which the total income exceeds ₹

1000000.

Paragraph B In the case of every co-operative society,— Rates of income-tax

(1) where the total income does not 10% of the total income; exceed ₹ 10000

(2) where the total income exceeds ₹ 1000 plus 20% of the amount by ₹ 10000 but does not exceed ₹ which the total income exceeds ₹ 20000 10000;

(3) where the total income exceeds ₹ 3000 plus 30% of the amount by ₹ 20000 which the total income exceeds ₹

20000.

Paragraph C112 113 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 113

(4) where the total income ₹ 112500 plus 30% of the amount In the case of every firm,— exceeds ₹ 1000000 by which the total income exceeds Rate of income-tax ₹ 1000000.

(II) In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the On the whole of the total income 30%. tax year,— Paragraph D Rates of income-tax In the case of every local authority,— Rate of income-tax

(1) where the total income does Nil; not exceed ₹ 300000

(2) where the total income 5% of the amount by which the On the whole of the total income 30%. exceeds ₹ 300000 but does not total income exceeds ₹ 300000; exceed ₹ 500000 Paragraph E

(3) where the total income ₹ 10000 plus 20% of the amount In the case of a company,— exceeds ₹ 500000 but does not by which the total income exceeds exceed ₹ 1000000 ₹ 500000; Rates of income-tax

(4) where the total income ₹ 110000 plus 30% of the amount exceeds ₹ 1000000 by which the total income exceeds I. In the case of a domestic ₹ 1000000.

(III) In the case of every individual, being a resident in India, who is of company,— the age of eighty years or more at any time during the tax year,—

(i) where its total turnover or 25% of the total income;

Rates of income-tax the gross receipt in the tax year 2024-25 does not exceed ₹ 400 crores;

(1) where the total income does Nil; (ii) other than that referred to 30% of the total income. not exceed ₹ 500000 in item (i)

(2) where the total income 20% of the amount by which the exceeds ₹ 500000 but does not total income exceeds ₹ 500000; II. In the case of a company exceed ₹ 1000000 other than a domestic company,—

(3) where the total income ₹ 100000 plus 30% of the amount by exceeds ₹ 1000000 which the total income exceeds ₹ (i) on so much of the total 50%;

1000000. income as consists of,— Paragraph B

(a) royalties received In the case of every co-operative society,— from Government or an Rates of income-tax Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st

(1) where the total income does not 10% of the total income;

March, 1961 but before the exceed ₹ 10000 1st April, 1976; or

(2) where the total income exceeds ₹ 1000 plus 20% of the amount by ₹ 10000 but does not exceed ₹ which the total income exceeds ₹

(b) fees for rendering 20000 10000; technical services received from Government or an

(3) where the total income exceeds ₹ 3000 plus 30% of the amount by Indian concern in pursuance ₹ 20000 which the total income exceeds ₹ of an agreement made by it

20000. with the Government or the Paragraph C Indian concern after the 29th114 114 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— February, 1964 but before the 1st April, 1976, and where such agreement has, in either case, been approved by the Central Government;

(ii) on the balance, if any, of 35%. the total income.

Paragraph F Surcharge on income-tax The amount of income-tax computed in accordance with Paragraphs A to E, or the provisions of section 196, 197 or 198 of the said Act, in the case of person as specified in column B in Table 1 below, shall be increased by a surcharge, for the purposes of the Union, calculated at the rate or rates as specified in column C of the said Table, of such income-tax.

TABLE 1 Sl. Person Rate of surcharge No.

A B C

1. (i) Every individual; (i) Where the total income (including dividend income or capital gains under the provisions of sections 196,

(ii) Hindu undivided 197 and 198 of the said Act) exceeds family; or ₹ 5000000 but does not exceed ₹ 10000000, at the rate of 10%;

(iii) association of persons, except in a case

(ii) where the total income (including of an association of dividend income or capital gains persons consisting of only under the provisions of sections 196, companies as its members, 197 and 198 of the said Act) exceeds whether incorporated or ₹ 10000000 but does not exceed ₹ not; or 20000000, at the rate of 15%;

(iv) body of individuals,

(iii) where the total income (excluding whether incorporated or dividend income or capital gains not; or under the provisions of sections 196, 197 and 198 of the said Act) exceeds

(v) every artificial ₹ 20000000 but does not exceed ₹ juridical person referred to 50000000, at the rate of 25%; in section 2(77)(g) of the said Act. (iv) where the total income (excluding dividend income or capital gains under the provisions of sections 196, 197 and 198 of the said Act) exceeds ₹ 50000000, at the rate of 37%;115 114 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 115 February, 1964 but before the (v) where the total income (including 1st April, 1976, dividend income or capital gains under the provisions of sections 196, and where such agreement has, in 197 and 198 of the said Act) exceeds either case, been approved by the ₹ 20000000, but is not covered in (iii) Central Government;

and (iv) above, at the rate of 15%;

(ii) on the balance, if any, of 35%.

(vi) where the total income includes the total income. any dividend income or capital gains Paragraph F under the provisions of sections 196, Surcharge on income-tax 197 and 198 of the said Act, the rate of surcharge on the amount of income- The amount of income-tax computed in accordance with Paragraphs A tax computed in respect of that part of to E, or the provisions of section 196, 197 or 198 of the said Act, in the case of income shall not exceed 15% and the person as specified in column B in Table 1 below, shall be increased by a provisions of clause (i) or (ii), as the surcharge, for the purposes of the Union, calculated at the rate or rates as case may be, shall apply accordingly.

specified in column C of the said Table, of such income-tax.

2. Association of persons (i) Where the total income exceeds ₹ consisting of only 5000000 but does not exceed ₹ TABLE 1 companies as its members. 10000000, at the rate of 10%;

Sl. Person Rate of surcharge No. (ii) where the total income exceeds ₹ 10000000, at the rate of 15%.

A B C

1. (i) Every individual; (i) Where the total income (including 3. Every co-operative (i) Where the total income exceeds ₹ dividend income or capital gains society. 10000000 but does not exceed ₹

(ii) Hindu undivided under the provisions of sections 196, 100000000, at the rate of 7%; family; or 197 and 198 of the said Act) exceeds ₹ 5000000 but does not exceed ₹

(ii) where the total income exceeds ₹ 10000000, at the rate of 10%;

(iii) association of 100000000, at the rate of 12%. persons, except in a case

(ii) where the total income (including of an association of 4. Every firm or local Where the total income exceeds ₹ dividend income or capital gains persons consisting of only authority. 10000000, at the rate of 12%.

under the provisions of sections 196, companies as its members,

5. Every domestic company. (i) Where the total income exceeds ₹ 197 and 198 of the said Act) exceeds whether incorporated or 10000000 but does not exceed ₹ not; or ₹ 10000000 but does not exceed ₹ 100000000, at the rate of 7%;

20000000, at the rate of 15%;

(iv) body of individuals,

(ii) where the total income exceeds ₹

(iii) where the total income (excluding whether incorporated or 100000000, at the rate of 12%. dividend income or capital gains not; or under the provisions of sections 196,

6. Every company, other (i) Where the total income exceeds ₹ 197 and 198 of the said Act) exceeds

(v) every artificial ₹ 20000000 but does not exceed ₹ than a domestic company. 10000000 but does not exceed ₹ juridical person referred to 50000000, at the rate of 25%; 100000000, at the rate of 2%; in section 2(77)(g) of the said Act. (iv) where the total income (excluding (ii) where the total income exceeds ₹ dividend income or capital gains 100000000, at the rate of 5%.

under the provisions of sections 196, 197 and 198 of the said Act) exceeds ₹ 50000000, at the rate of 37%;116 116 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— Further, in respect of the persons mentioned in column B of the Table 2 below, having total income exceeding the amount as specified in column C of the said Table but does not exceed the amount specified in column D thereof, the total amount payable as income-tax and surcharge thereon shall not exceed

the amount determined as per the following formula:— W = U + V n n n where,–– W = the total amount beyond which the total amount payable as income- n tax and surcharge thereon shall not exceed;

U = the total amount payable as income-tax and surcharge, if applicable, n on an amount as specified in column C of the Table 2 below; and V = the total income – amount as specified in column C of the said Table.

n TABLE 2 Sl. Person Amount Amount No.

A B C D

1. Table 1: Sl. No. ₹ 50,00,000. ₹ 1,00,00,000.

1.B. ₹1,00,00,000. ₹ 2,00,00,000. ₹ 2,00,00,000. ₹ 5,00,00,000. ₹ 5,00,00,000. -

2. Table 1: Sl. No. ₹ 50,00,000. ₹ 1,00,00,000.

2.B. ₹1,00,00,000. -

3. Table 1: Sl. No. ₹ 1,00,00,000. ₹ 10,00,00,000.

3.B. ₹ 10,00,00,000. -

4. Table 1: Sl. No. ₹ 1,00,00,000. -

4.B.

5. Table 1: Sl. No. ₹1,00,00,000. ₹10,00,00,000.

5.B and 6.B. ₹ 10,00,00,000. -116 117 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 117 Further, in respect of the persons mentioned in column B of the Table 2 PART II below, having total income exceeding the amount as specified in column C of RATES FOR DEDUCTION OF TAX AT SOURCE IN CERTAIN the said Table but does not exceed the amount specified in column D thereof, CASES the total amount payable as income-tax and surcharge thereon shall not exceed

the amount determined as per the following formula:— W = U + V In every case in which under the provisions of sections 393(1)[Table: Sl. n n n Nos. 1(i) and 5], 393(2)[Table: Sl. Nos. 7, 8, 9 and 17] and 393(3)[Table: Sl.

where,–– Nos. 1, 2 and 3] of the Income-tax Act, 2025 (hereafter in this Part referred to 30 of 2025.

W = the total amount beyond which the total amount payable as income- as the said Act), tax is to be deducted at the rates in force, deduction shall be n tax and surcharge thereon shall not exceed; made from the income subject to the deduction at the following rates:— U n = the total amount payable as income-tax and surcharge, if applicable, on an amount as specified in column C of the Table 2 below; and Rate of V n = the total income – amount as specified in column C of the said Table. income-tax

1. In the case of a person other than a company—

(a) where the person is resident in India,— TABLE 2

(i) on income by way of interest other than 10%;

Sl. Person Amount Amount “Interest on securities” No.

(ii) on income by way of winnings from 30%;

A B C D lotteries, puzzles, card games and other

1. Table 1: Sl. No. ₹ 50,00,000. ₹ 1,00,00,000. games of any sort (other than winnings

1.B. from online games) ₹1,00,00,000. ₹ 2,00,00,000.

(iii) on income by way of winnings from 30%; horse races ₹ 2,00,00,000. ₹ 5,00,00,000.

(iv) on income by way of net winnings 30%; ₹ 5,00,00,000. - from online games

2. Table 1: Sl. No. ₹ 50,00,000. ₹ 1,00,00,000.

(v) on income by way of insurance 2%;

2.B. commission ₹1,00,00,000. -

3. Table 1: Sl. No. ₹ 1,00,00,000. ₹ 10,00,00,000. (vi) on income by way of interest payable 10%;

3.B. on— ₹ 10,00,00,000. -

4. Table 1: Sl. No. ₹ 1,00,00,000. - (A) any debentures or securities for

4.B. money issued by or on behalf of any local authority or a corporation

5. Table 1: Sl. No. ₹1,00,00,000. ₹10,00,00,000. established by a Central, State or

5.B and 6.B. ₹ 10,00,00,000. - Provincial Act;

(B) any debentures issued by a company where such debentures are listed on a recognised stock exchange in India in accordance with the Securities Contracts

(Regulation) Act, 1956 (42 of118 118 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—

1956) and the rules made thereunder;

(vii) on any other income 10%;

(b) where the person is not resident in India,—

(i) in the case of a non-resident Indian,—

(A) on any investment income 20%;

(B) on income by way of long-term 12.5%; capital gains referred to in section 214 or 197(4) of the said Act

(D) on other income by way of 12.5%; long-term capital gains [not being long-term capital gains referred to in Schedule II[Table: Sl. Nos. 14 and 17] [to the extent it relates to

section 10(36) of the Income-tax Act, 1961 (43 of 1961)] of the said Act]

(E) on income by way of short-term 20%; capital gains referred to in section 196 of the said Act

(F) on income by way of interest 20%; payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in section 393(2)[Table: Sl. Nos.

2 to 5] of the said Act)

(G) on income by way of royalty 20%; payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern118 119 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 119

1956) and the rules made where such royalty is in thereunder; consideration for the transfer of all or any rights (including the

(C) any security of the Central granting of a licence) in respect of Government or State Government; copyright in any book referred to in

section 207(3)(a) of the said Act, to

(vii) on any other income 10%; the Indian concern, or in respect of any computer software referred to

(b) where the person is not resident in India,— in section 207(3)(b) of the said Act, to a person resident in India

(i) in the case of a non-resident Indian,—

(H) on income by way of royalty 20%;

(A) on any investment income 20%; [not being royalty of the nature referred to in sub-item (b)(i)(G)]

(B) on income by way of long-term 12.5%; payable by Government or an capital gains referred to in section Indian concern in pursuance of an 214 or 197(4) of the said Act agreement made by it with the Government or the Indian concern

(C) on income by way of long-term 12.5%; and where such agreement is with capital gains referred to in section an Indian concern, the agreement is 198 of the said Act exceeding ₹ approved by the Central 125000 Government or where it relates to a matter included in the industrial

(D) on other income by way of 12.5%; policy of the Government of India, long-term capital gains [not being the agreement is in accordance with long-term capital gains referred to that policy in Schedule II[Table: Sl. Nos. 14 and 17] [to the extent it relates to (I) on income by way of fees for 20%;

section 10(36) of the Income-tax technical services payable by Act, 1961 (43 of 1961)] of the said Government or an Indian concern Act] in pursuance of an agreement made by it with the Government or the

(E) on income by way of short-term 20%;

Indian concern and where such capital gains referred to in section agreement is with an Indian 196 of the said Act concern, the agreement is approved by the Central Government or

(F) on income by way of interest 20%; where it relates to a matter included payable by Government or an in the industrial policy of the Indian concern on moneys Government of India, the borrowed or debt incurred by agreement is in accordance with Government or the Indian concern that policy in foreign currency (not being income by way of interest referred

(J) on income by way of winnings 30%; to in section 393(2)[Table: Sl. Nos. from lotteries, crossword puzzles, 2 to 5] of the said Act) card games and other games of any sort (other than winnings from

(G) on income by way of royalty 20%; online games) payable by Government or an Indian concern in pursuance of an

(K) on income by way of winnings 30%; agreement made by it with the from horse races Government or the Indian concern120 120 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—

(L) on income by way of net 30%; winnings from online games

(M) on income by way of dividend, 10%; referred to in section 207(1)[Table:

Sl. No. 2] of the said Act

(N) on income by way of dividend 20%; other than the income referred to in sub-item (b)(i)(M)

(O) on the whole of the other 30%; income

(ii) in the case of any other person,—

(A) on income by way of interest 20%; payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in section 393(2)[Table: Sl. Nos.

2 to 5] of the said Act)

(B) on income by way of royalty 20%; payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book referred to in

section 207(3)(a) of the said Act, to the Indian concern, in respect of any computer software referred to in section 207(3)(b) of the said Act, to a person resident in India

(C) on income by way of royalty 20%; [not being royalty of the nature referred to in sub-item (b)(ii)(B)] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is120 121 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 121

(L) on income by way of net 30%; approved by the Central winnings from online games Government or where it relates to a matter included in the industrial

(M) on income by way of dividend, 10%; policy of the Government of India, referred to in section 207(1)[Table: the agreement is in accordance with Sl. No. 2] of the said Act that policy

(N) on income by way of dividend 20%; (D) on income by way of fees for 20%; other than the income referred to in technical services payable by sub-item (b)(i)(M) Government or an Indian concern in pursuance of an agreement made

(O) on the whole of the other 30%; by it with the Government or the income Indian concern and where such agreement is with an Indian

(ii) in the case of any other person,— concern, the agreement is approved by the Central Government or

(A) on income by way of interest 20%; where it relates to a matter included payable by Government or an in the industrial policy of the Indian concern on moneys Government of India, the borrowed or debt incurred by agreement is in accordance with Government or the Indian concern that policy in foreign currency (not being income by way of interest referred (E) on income by way of winnings 30%;

to in section 393(2)[Table: Sl. Nos. from lotteries, crossword puzzles, 2 to 5] of the said Act) card games and other games of any sort (other than winnings from

(B) on income by way of royalty 20%; online games) payable by Government or an Indian concern in pursuance of an (F) on income by way of winnings 30%; agreement made by it with the from horse races Government or the Indian concern where such royalty is in (G) on income by way of net 30%;

consideration for the transfer of all winnings from online games or any rights (including the granting of a licence) in respect of (H) on income by way of short- 20%; copyright in any book referred to in term capital gains referred to in

section 207(3)(a) of the said Act, to section 196 of the said Act the Indian concern, in respect of any computer software referred to (I) on income by way of long-term 12.5%; in section 207(3)(b) of the said Act, capital gains referred to in section to a person resident in India 197(4) of the said Act

(C) on income by way of royalty 20%; (J) on income by way of long-term 12.5%; [not being royalty of the nature capital gains referred to in section referred to in sub-item (b)(ii)(B)] 198 of the said Act exceeding ₹ payable by Government or an 125000 Indian concern in pursuance of an agreement made by it with the (K) on other income by way of 12.5%;

Government or the Indian concern long-term capital gains [not being and where such agreement is with long-term capital gains referred to an Indian concern, the agreement is in Schedule II[Table: Sl. Nos. 14122 122 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— and 17 [to the extent it relates to

section 10(36) of the Income-tax Act, 1961 (43 of 1961)] of the said Act

(L) on income by way of dividend, 10%; referred to in section 207(1)[Table:

Sl. No. 2] of the said Act

(M) on income by way of dividend 20%; other than the income referred to in sub-item (b)(ii)(L)

(N) on the whole of the other 30%; income

2. In the case of a company,—

(a) where the company is a domestic company—

(i) on income by way of interest other than 10%; “Interest on securities”

(ii) on income by way of winnings from 30%; lotteries, puzzles, card games and other games of any sort (other than winnings from online games)

(iii) on income by way of winnings from 30%; horse races

(iv) on income by way of net winnings 30%; from online games

(v) on any other income 10%;

(b) where the company is not a domestic company—

(i) on income by way of winnings from 30%; lotteries, crossword puzzles, card games and other games of any sort (other than winnings from online games)

(ii) on income by way of winnings from 30%; horse races

(iii) on income by way of net winnings 30%; from online games122 123 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 123 and 17 [to the extent it relates to (iv) on income by way of interest 20%;

section 10(36) of the Income-tax payable by Government or an Indian Act, 1961 (43 of 1961)] of the said concern on moneys borrowed or debt Act incurred by Government or the Indian concern in foreign currency (not being

(L) on income by way of dividend, 10%; income by way of interest referred to in referred to in section 207(1)[Table: section 393(2)[Table: Sl. Nos. 2 to 5] of Sl. No. 2] of the said Act the said Act)

(M) on income by way of dividend 20%; (v) on income by way of royalty payable 20%; other than the income referred to in by Government or an Indian concern in sub-item (b)(ii)(L) pursuance of an agreement made by it with the Government or the Indian

(N) on the whole of the other 30%; concern after the 31st March, 1976 income where such royalty is in consideration for the transfer of all or any rights

2. In the case of a company,— (including the granting of a licence) in respect of copyright in any book

(a) where the company is a domestic company— referred to in section 207(3)(a) of the said Act, to the Indian concern, or in

(i) on income by way of interest other than 10%; respect of any computer software “Interest on securities” referred to in section 207(3)(b) of the said Act, to a person resident in India

(ii) on income by way of winnings from 30%; lotteries, puzzles, card games and other (vi) on income by way of royalty [not games of any sort (other than winnings being royalty of the nature referred to in from online games) item (b)(v)] payable by Government or an Indian concern in pursuance of an

(iii) on income by way of winnings from 30%; agreement made by it with the horse races Government or the Indian concern and where such agreement is with an Indian

(iv) on income by way of net winnings 30%; concern, the agreement is approved by from online games the Central Government or where it relates to a matter included in the

(v) on any other income 10%; industrial policy of the Government of India, the agreement is in with that

(b) where the company is not a domestic policy— company—

(A) where the agreement is made 50%;

(i) on income by way of winnings from 30%; after the 31st March, 1961 but lotteries, crossword puzzles, card games before the 1st April, 1976 and other games of any sort (other than winnings from online games)

(B) where the agreement is made 20%; after the 31st March, 1976

(ii) on income by way of winnings from 30%; horse races

(vii) on income by way of fees for technical services payable by

(iii) on income by way of net winnings 30%;

Government or an Indian concern in from online games pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is124 124 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy of the Government of India, the agreement is in accordance with that policy—

(A) where the agreement is made 50%; after the 29th February, 1964 but before the 1st April, 1976

(B) where the agreement is made 20%; after the 31st March, 1976

(viii) on income by way of short-term 20%; capital gains referred to in section 196 of the said Act

(ix) on income by way of long-term 12.5%; capital gains referred to in section 197(4) of the said Act

(x) on income by way of long-term 12.5%; capital gains referred to in section 198 of the said Act exceeding ₹ 125000

(xi) on other income by way of long- 12.5%; term capital gains [not being long-term capital gains referred to in Schedule II[Table: Sl. Nos. 14 and 17 [to the extent it relates to section 10(36) of the Income-tax Act, 1961(43 of 1961)] of the said Act

(xii) on income by way of dividend, 10%; referred to in section 207(1)[Table: Sl.

No. 2] of the said Act

(xiii) on income by way of dividend 20%; other than the income referred to in item

(b)(xii)

(xiv) on any other income 35%.

Note.—For the purposes of item 1(b)(i) of this Part, “investment income” and “non-resident Indian” shall have the meanings respectively assigned to them in section 212 of the said Act.124 125 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 125 with an Indian concern, the agreement is Surcharge on income-tax approved by the Central Government or The amount of income-tax deducted as per the provisions of this Part, where it relates to a matter included in in the case of a person as specified in column B of the Table below, shall be the industrial policy of the Government increased by a surcharge, for the purposes of the Union, calculated at the rate or of India, the agreement is in accordance rates as specified in column C of the said Table, of such tax.

with that policy—

(A) where the agreement is made 50%;

TABLE after the 29th February, 1964 but before the 1st April, 1976 Sl. Person in respect of which Rate of surcharge No. deduction has to be made

(B) where the agreement is made 20%;

A B C after the 31st March, 1976

1. (i) Every individual; or (i) Where the income or the aggregate

(viii) on income by way of short-term 20%; of such incomes (including dividend capital gains referred to in section 196 income or capital gains under the

(ii) Hindu undivided of the said Act provisions of sections 196, 197 and 198 family; or of the said Act) paid or likely to be paid

(ix) on income by way of long-term 12.5%; and subject to the deduction exceeds ₹ capital gains referred to in section (iii) association of persons, 5000000 but does not exceed ₹ 197(4) of the said Act except in a case of an 10000000, at the rate of 10%;

association of persons

(x) on income by way of long-term 12.5%; consisting of only

(ii) where the income or the aggregate capital gains referred to in section 198 companies as its members, of such incomes (including dividend of the said Act exceeding ₹ 125000 whether incorporated or income or capital gains under the not; or provisions of sections 196, 197 and 198

(xi) on other income by way of long- 12.5%; of the said Act) paid or likely to be paid term capital gains [not being long-term

(iv) body of individuals, and subject to the deduction exceeds ₹ capital gains referred to in Schedule whether incorporated or 10000000 but does not exceed ₹ II[Table: Sl. Nos. 14 and 17 [to the not; or 20000000, at the rate of 15%;

extent it relates to section 10(36) of the Income-tax Act, 1961(43 of 1961)] of the said Act (v) every artificial juridical (iii) where the income or the aggregate person referred to in of such incomes (excluding dividend

(xii) on income by way of dividend, 10%; section 2(77)(g) of the said income or capital gains under the referred to in section 207(1)[Table: Sl. Act, provisions of sections 196, 197 and 198 No. 2] of the said Act of the said Act) paid or likely to be paid and subject to the deduction exceeds ₹ being a non-resident, except

(xiii) on income by way of dividend 20%; 20000000 but does not exceed ₹ in case where the income of other than the income referred to in item 50000000, at the rate of 25%; such person, is chargeable

(b)(xii) to tax under section 202 of the said Act. (iv) where the income or the aggregate

(xiv) on any other income 35%. of such incomes (excluding the income by way of dividend or income under the provisions of sections 196, 197 and 198 of the said Act) paid or likely to be paid Note.—For the purposes of item 1(b)(i) of this Part, “investment and subject to the deduction exceeds ₹ income” and “non-resident Indian” shall have the meanings respectively 50000000, at the rate of 37%;

assigned to them in section 212 of the said Act.126 126 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—

(v) where the income or the aggregate of such incomes (including dividend income or capital gains under the provisions of sections 196, 197 and 198 of the said Act) paid or likely to be paid and subject to the deduction exceeds ₹ 20000000, but is not covered under clauses (iii) and (iv), at the rate of 15%;

(vi) where the total income includes dividend income or capital gains under sections 196, 197 and 198 of the said Act, the rate of surcharge on the amount of income-tax computed in respect of that part of income shall not exceed 15% and the clause (i) or (ii), as the case may be, shall apply accordingly.

2. (i) Every individual; or (i) Where the income or the aggregate of such incomes (including dividend income or capital gains under the

(ii) Hindu undivided provisions of sections 196, 197 and 198 family; or of the said Act) paid or likely to be paid and subject to the deduction exceeds ₹

(iii) association of persons, 5000000 but does not exceed ₹ except in a case of an 10000000, at the rate of 10%; association of persons consisting of only

(ii) where the income or the aggregate companies as its members, of such incomes (including dividend whether incorporated or income or capital gains under the not; or provisions of sections 196, 197 and 198 of the said Act) paid or likely to be paid

(iv) body of individuals, and subject to the deduction exceeds ₹ whether incorporated or 10000000 but does not exceed ₹ not; or 20000000, at the rate of 15%;

(v) every artificial juridical (iii) where the income or the aggregate person referred to in of such incomes (excluding dividend

section 2(77)(g) of the said income or capital gains under the Act, provisions of sections 196, 197 and 198 of the said Act) paid or likely to be paid and subject to the deduction exceeds ₹ being a non-resident where 20000000, at the rate of 25%;

the income of such person is chargeable to tax under

section 202 of the said Act. (iv) where the income or the aggregate of such incomes (including dividend income or capital gains under the provisions of sections 196, 197 and 198 of the said Act) paid or likely to be paid126 127 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 127

(v) where the income or the aggregate and subject to the deduction exceeds ₹ of such incomes (including dividend 20000000 but is not covered under income or capital gains under the clauses (iii), at the rate of 15%;

provisions of sections 196, 197 and 198 of the said Act) paid or likely to be paid

(v) where the total income includes and subject to the deduction exceeds ₹ dividend income or capital gains under 20000000, but is not covered under sections 196, 197 and 198 of the said clauses (iii) and (iv), at the rate of 15%;

Act, the rate of surcharge on the amount of income-tax deducted in respect of

(vi) where the total income includes that part of income shall not exceed dividend income or capital gains under 15% and the clause (i) or (ii), as the case sections 196, 197 and 198 of the said may be, shall apply accordingly.

Act, the rate of surcharge on the amount of income-tax computed in respect of 3. Association of persons, (i) Where the income or the aggregate of that part of income shall not exceed being a non-resident, and such incomes paid or likely to be paid 15% and the clause (i) or (ii), as the case consisting of only and subject to the deduction exceeds ₹ may be, shall apply accordingly. companies as its members. 5000000 but does not exceed ₹ 10000000, at the rate of 10%;

2. (i) Every individual; or (i) Where the income or the aggregate of such incomes (including dividend

(ii) where the income or the aggregate of income or capital gains under the

(ii) Hindu undivided such incomes paid or likely to be paid provisions of sections 196, 197 and 198 family; or and subject to the deduction exceeds ₹ of the said Act) paid or likely to be paid 10000000, at the rate of 15%.

and subject to the deduction exceeds ₹

(iii) association of persons, 5000000 but does not exceed ₹

4. Every co-operative society, (i) Where the income or the aggregate except in a case of an 10000000, at the rate of 10%; being a non-resident. of such incomes paid or likely to be paid association of persons and subject to the deduction exceeds ₹ consisting of only

(ii) where the income or the aggregate 10000000 but does not exceed ₹ companies as its members, of such incomes (including dividend 100000000, at the rate of 7%; whether incorporated or income or capital gains under the not; or provisions of sections 196, 197 and 198

(ii) where the income or the aggregate of the said Act) paid or likely to be paid of such incomes paid or likely to be paid

(iv) body of individuals, and subject to the deduction exceeds ₹ and subject to the deduction exceeds ₹ whether incorporated or 10000000 but does not exceed ₹ 100000000, at the rate of 12%. not; or 20000000, at the rate of 15%;

5. Every firm, being a non- Where the income or the aggregate of

(v) every artificial juridical (iii) where the income or the aggregate resident. such incomes paid or likely to be paid person referred to in of such incomes (excluding dividend and subject to the deduction exceeds ₹

section 2(77)(g) of the said income or capital gains under the 10000000, at the rate of 12%.

Act, provisions of sections 196, 197 and 198

6. Every company, other than (i) Where the income or the aggregate of the said Act) paid or likely to be paid a domestic company. of such incomes paid or likely to be paid and subject to the deduction exceeds ₹ being a non-resident where and subject to the deduction exceeds ₹ 20000000, at the rate of 25%;

the income of such person 10000000 but does not exceed ₹ is chargeable to tax under 100000000, at the rate of 2%;

section 202 of the said Act. (iv) where the income or the aggregate of such incomes (including dividend (ii) where the income or the aggregate income or capital gains under the of such incomes paid or likely to be paid provisions of sections 196, 197 and 198 and subject to the deduction exceeds ₹ of the said Act) paid or likely to be paid 100000000, at the rate of 5%.128 128 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— PART III RATES FOR CHARGING INCOME-TAX IN CERTAIN CASES, DEDUCTING INCOME-TAX FROM INCOME CHARGEABLE UNDER THE HEAD “SALARIES” AND COMPUTING “ADVANCE TAX” In cases in which income-tax has to be charged under section 316(5) of the Income-tax Act, 2025 (30 of 2025) (hereafter in this Part referred to as the said Act) or section 317(2) or 318 or 319 or 320(2) of the said Act or deducted from, or paid on, from income chargeable under the head “Salaries” under

section 392 (other than sub-section (7) of the said section) of the said Act or deducted under section 393(1)[Table: Sl. No. 8(iii)] of the said Act or in which the “advance tax” payable under Chapter XIX-C of the said Act has to be computed at the rate or rates in force, such income-tax or, as the case may be, “advance tax” [not being “advance tax” in respect of any income chargeable to tax under Part A, B, C or D of Chapter XIII or section 207 to 218, 223, 224, 307, 308, 311 or 334 of the said Act at the rates as specified in that Chapter or section or surcharge, wherever applicable, on such “advance tax” in respect of any income chargeable to tax under section 193, 194, 195, 199, 200, 201, 202, 203, 204, 206, 207, 208, 209, 210, 211, 214, 218 or 334 of the said Act] shall be charged, deducted or computed at the following rate or rates:— Paragraph A

(1) where the total income does Nil; not exceed ₹ 250000

(2) where the total income 5% of the amount by which the total exceeds ₹ 250000 but does not income exceeds ₹ 250000; exceed ₹ 500000

(3) where the total income ₹ 12500 plus 20% of the amount by exceeds ₹ 500000 but does not which the total income exceeds ₹ exceed ₹ 1000000 500000;

(4) where the total income ₹ 112500 plus 30% of the amount by exceeds ₹ 1000000 which the total income exceeds ₹

1000000.

(II) In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the tax year,—128 129 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 129 PART III Rates of income-tax RATES FOR CHARGING INCOME-TAX IN CERTAIN CASES, DEDUCTING INCOME-TAX FROM INCOME CHARGEABLE UNDER

(1) where the total income does Nil;

THE HEAD “SALARIES” AND COMPUTING “ADVANCE TAX” not exceed ₹ 300000

(2) where the total income 5% of the amount by which the total In cases in which income-tax has to be charged under section 316(5) of exceeds ₹ 300000 but does not income exceeds ₹ 300000; the Income-tax Act, 2025 (30 of 2025) (hereafter in this Part referred to as the exceed ₹ 500000 said Act) or section 317(2) or 318 or 319 or 320(2) of the said Act or deducted

(3) where the total income ₹ 10000 plus 20% of the amount by from, or paid on, from income chargeable under the head “Salaries” under exceeds ₹ 500000 but does not which the total income exceeds ₹

section 392 (other than sub-section (7) of the said section) of the said Act or exceed ₹ 1000000 500000; deducted under section 393(1)[Table: Sl. No. 8(iii)] of the said Act or in which the “advance tax” payable under Chapter XIX-C of the said Act has to be (4) where the total income ₹ 110000 plus 30% of the amount by computed at the rate or rates in force, such income-tax or, as the case may be, exceeds ₹ 1000000 which the total income exceeds ₹ “advance tax” [not being “advance tax” in respect of any income chargeable to 1000000.

tax under Part A, B, C or D of Chapter XIII or section 207 to 218, 223, 224, 307, 308, 311 or 334 of the said Act at the rates as specified in that Chapter or section (III) In the case of every individual, being a resident in India, who is of or surcharge, wherever applicable, on such “advance tax” in respect of any the age of eighty years or more at any time during the tax year,— income chargeable to tax under section 193, 194, 195, 199, 200, 201, 202, 203, Rates of income-tax 204, 206, 207, 208, 209, 210, 211, 214, 218 or 334 of the said Act] shall be charged, deducted or computed at the following rate or rates:— Paragraph A (1) where the total income does not Nil;

exceed ₹ 500000

(I) In the case of every individual other than the individual referred to in items (II) and (III) of this Paragraph or Hindu undivided family or association (2) where the total income exceeds ₹ 20% of the amount by which the of persons or body of individuals, whether incorporated or not, or every artificial 500000 but does not exceed ₹ total income exceeds ₹ 500000;

juridical person referred to in section 2(77)(g) of the said Act, not being a case 1000000 to which Paragraphs B, C, D and E of this Part applies,—

(3) where the total income exceeds ₹ ₹ 100000 plus 30% of the amount Rates of income-tax 1000000 by which the total income exceeds ₹ 1000000.

(1) where the total income does Nil; Paragraph B not exceed ₹ 250000 In the case of every co-operative society,—

(2) where the total income 5% of the amount by which the total Rates of income-tax exceeds ₹ 250000 but does not income exceeds ₹ 250000; exceed ₹ 500000

(1) where the total income does 10% of the total income;

(3) where the total income ₹ 12500 plus 20% of the amount by not exceed ₹ 10000 exceeds ₹ 500000 but does not which the total income exceeds ₹ exceed ₹ 1000000 500000; (2) where the total income ₹ 1000 plus 20% of the amount by exceeds ₹ 10000 but does not which the total income exceeds ₹

(4) where the total income ₹ 112500 plus 30% of the amount by exceed ₹ 20000 10000; exceeds ₹ 1000000 which the total income exceeds ₹

1000000. (3) where the total income ₹ 3000 plus 30% of the amount by exceeds ₹ 20000 which the total income exceeds ₹

(II) In the case of every individual, being a resident in India, who is of

20000. the age of sixty years or more but less than eighty years at any time during the tax year,— Paragraph C In the case of every firm,—130 130 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— Rate of income-tax On the whole of the total income 30%.

Paragraph D In the case of every local authority,— Rate of income-tax On the whole of the total income 30%.

Paragraph E In the case of a company,— Rates of income-tax I. In the case of a domestic company,—

(i) where its total turnover or 25% of the total the gross receipt in the tax year income;

2024-25 does not exceed ₹ 400 crores;

(ii) other than that referred to 30% of the total in item (i) income.

II. In the case of a company other than a domestic company,—

(i) on so much of the total 50%; income as consists of,—

(b) fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 29th February,130 131 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 131 Rate of income-tax 1964 but before the 1st April, 1976, On the whole of the total income 30%. and where such agreement has, in either case, been approved by the Paragraph D Central Government;

In the case of every local authority,—

(ii) on the balance, if any, of 35%.

Rate of income-tax the total income Paragraph F Surcharge on income-tax On the whole of the total income 30%.

Paragraph E The amount of income-tax computed in accordance with the Paragraphs A to E, or the provisions of section 196, 197 or 198 of the said Act, in the case In the case of a company,— of person as specified in column B in Table 1 below, shall be increased by a Rates of income-tax surcharge, for the purposes of the Union, calculated at the rate or rates as specified in column C of the said Table, of such income-tax.

I. In the case of a domestic company,— TABLE 1

(i) where its total turnover or 25% of the total Sl. Person Rate of surcharge the gross receipt in the tax year income; No.

2024-25 does not exceed ₹ 400 A B C crores; 1. (i) Every individual; or (i) Where the total income (including dividend income or

(ii) other than that referred to 30% of the total (ii) Hindu undivided family; capital gains under the provisions in item (i) income. or of sections 196, 197 and 198 of the said Act) exceeds ₹ 5000000 but II. In the case of a company other (iii) association of persons, does not exceed ₹ 10000000, at the than a domestic company,— except in a case of an rate of 10%;

association of persons

(i) on so much of the total 50%; consisting of only (ii) where the total income income as consists of,— companies as its members, (including dividend income or whether incorporated or not; capital gains under the provisions

(a) royalties received from or of sections 196, 197 and 198 of the Government or an Indian said Act) exceeds ₹ 10000000 but concern in pursuance of an

(iv) body of individuals, does not exceed ₹ 20000000, at the agreement made by it with the whether incorporated or not; rate of 15%;

Government or the Indian or concern after the 31st March,

(iii) where the total income 1961 but before the 1st April,

(v) every artificial juridical (excluding dividend income or 1976; or person referred to in section capital gains under the provisions 2(77)(g) of the said Act. of sections 196, 197 and 198 of the

(b) fees for rendering said Act) exceeds ₹ 20000000 but technical services received from does not exceed ₹ 50000000, at the Government or an Indian concern in pursuance of an rate of 25%; agreement made by it with the Government or the Indian (iv) where the total income concern after the 29th February, (excluding dividend income or capital gains under the provisions132 132 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— of sections 196, 197 and 198 of the said Act) exceeds ₹ 50000000, at the rate of 37%;

(v) where the total income (including dividend income or capital gains under the provisions of sections 196, 197 and 198 of the said Act) exceeds ₹ 20000000, but is not covered in (iii) and (iv) above, at the rate of 15%;

(vi) where the total income includes any dividend income or capital gains under the provisions of sections 196, 197 and 198 of the said Act, the rate of surcharge on the amount of income-tax computed in respect of that part of income shall not exceed 15% and the provisions of clause (i) or (ii), as the case may be, shall apply accordingly.

2. Association of persons (i) Where the total income exceeds consisting of only ₹ 5000000 but does not exceed ₹ companies as its members. 10000000, at the rate of 10%;

(ii) where the total income exceeds ₹ 10000000, at the rate of 15%.

3. Every co-operative society. (i) Where the total income exceeds ₹ 10000000 but does not exceed ₹ 100000000, at the rate of 7%;

(ii) where the total income exceeds ₹ 100000000, at the rate of 12%.

4. Every firm or local Where the total income exceeds ₹ authority. 10000000, at the rate of 12%.

5. Every domestic company. (i) Where the total income exceeds ₹ 10000000 but does not exceed ₹ 100000000, at the rate of 7%;

(ii) where the total income exceeds ₹ 100000000, at the rate of 12%.

6. Every company, other than a (i) Where the total income exceeds domestic company. ₹ 10000000 but does not exceed ₹ 100000000, at the rate of 2%;132 133 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 133 of sections 196, 197 and 198 of the said Act) exceeds ₹ 50000000, at (ii) where the total income exceeds the rate of 37%; ₹ 100000000, at the rate of 5%.

(v) where the total income Further, in respect of the persons mentioned in column B of the Table 2 (including dividend income or below, having total income exceeding the amount as specified in column C of capital gains under the provisions the said Table but does not exceed the amount specified in column D thereof, of sections 196, 197 and 198 of the the total amount payable as income-tax and surcharge thereon shall not exceed said Act) exceeds ₹ 20000000, but the amount determined as per the following formula:— is not covered in (iii) and (iv) above, at the rate of 15%; W = U + V a a a

(vi) where the total income where,–– includes any dividend income or capital gains under the provisions W = the total amount beyond which the total amount payable as income- a of sections 196, 197 and 198 of the tax and surcharge thereon shall not exceed;

said Act, the rate of surcharge on the amount of income-tax U = the total amount payable as income-tax and surcharge, if applicable, a computed in respect of that part of on an amount as specified in column C of the Table 2 below; and income shall not exceed 15% and the provisions of clause (i) or (ii), V = the total income – amount as specified in column C of the said Table.

a as the case may be, shall apply accordingly.

TABLE 2

2. Association of persons (i) Where the total income exceeds Sl. Person Amount Amount consisting of only ₹ 5000000 but does not exceed ₹ No. companies as its members. 10000000, at the rate of 10%;

A B C D

(ii) where the total income exceeds 1. Table 1: Sl. No. ₹ 5000000. ₹ 10000000. ₹ 10000000, at the rate of 15%. 1.B. ₹10000000. ₹ 20000000.

3. Every co-operative society. (i) Where the total income exceeds ₹ 10000000 but does not exceed ₹ 100000000, at the rate of 7%; ₹ 20000000. ₹ 50000000.

(ii) where the total income exceeds ₹ 50000000. - ₹ 100000000, at the rate of 12%.

2. Table 1: Sl. No. ₹ 5000000. ₹ 10000000.

4. Every firm or local Where the total income exceeds ₹ 2.B. ₹10000000. - authority. 10000000, at the rate of 12%.

3. Table 1: Sl. No. ₹ 10000000. ₹ 100000000.

5. Every domestic company. (i) Where the total income exceeds 3.B. ₹ 100000000. - ₹ 10000000 but does not exceed ₹ 100000000, at the rate of 7%; 4. Table 1: Sl. No. ₹ 10000000. -

4.B.

(ii) where the total income exceeds

5. Table 1: Sl. No. ₹10000000. ₹100000000. ₹ 100000000, at the rate of 12%.

5.B and 6.B. ₹ 100000000. -

6. Every company, other than a (i) Where the total income exceeds domestic company. ₹ 10000000 but does not exceed ₹ 100000000, at the rate of 2%;134 134 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— PART IV RULES FOR COMPUTATION OF NET AGRICULTURAL INCOME A.–– UNDER THE INCOME-TAX ACT, 1961 [See section 2(7)(b)]

Rule 1.—(1) Agricultural income of the nature referred to in section 2(1A)(a) of the Income-tax Act, 1961 (43 of 1961) (hereafter in this Part IV-A referred to as the said Act) shall be computed as if it were income chargeable to income-tax under the said Act under the head “Income from other sources” and the provisions of sections 57 to 59 of the said Act shall, so far as may be, apply accordingly.

(2) For the purposes of sub-rule (1), section 58(2) of the said Act shall apply subject to the modification that the reference to section 40A of the said Act therein shall be construed as not including a reference to sub-sections (3),

(3A) and (4) of section 40A.

Rule 2.—Agricultural income of the nature referred to in section 2(1A)(b) or (c) of the said Act [other than income derived from any building required as a dwelling-house by the receiver of the rent or revenue of the cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c)] shall be computed as if it were income chargeable to income-tax under the said Act under the head “Profits and gains of business or profession” and the provisions of sections 30, 31, 32, 36, 37, 38, 40, 40A [other than sub-sections

(3), (3A) and (4) thereof], 41, 43, 43A, 43B and 43C of the said Act shall, so far as may be, apply accordingly.

Rule 3.—Agricultural income of the nature referred to in section 2(1A)(c) of the said Act, being income derived from any building required as a dwelling-house by the receiver of the rent or revenue or the cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c) shall be computed as if it were income chargeable to income-tax under the said Act under the head “Income from house property” and the provisions of sections 23 to 27 of that Act shall, so far as may be, apply accordingly.

Rule 4.—Irrespective of anything contained in any other provisions of these rules, in a case—

(a) where the assessee derives income from sale of tea grown and manufactured by him in India, such income shall be computed as per rule 8 of the Income-tax Rules, 1962, and 60% of such income shall be regarded as the agricultural income of the assessee;

(b) where the assessee derives income from sale of centrifuged latex or cenex or latex based crepes (such as pale latex crepe) or brown crepes (such as estate brown crepe, re-milled crepe, smoked blanket crepe or flat bark crepe) or technically specified block rubbers manufactured or processed by him from rubber plants grown by him in134 135 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 135 PART IV India, such income shall be computed as per rule 7A of the Income-tax Rules, 1962, and 65% of such income shall be regarded as the RULES FOR COMPUTATION OF NET AGRICULTURAL INCOME agricultural income of the assessee;

A.–– UNDER THE INCOME-TAX ACT, 1961

(c) where the assessee derives income from sale of coffee grown [See section 2(7)(b)] and manufactured by him in India, such income shall be computed as per rule 7B of the Income-tax Rules, 1962, and 60% or 75%, as the case may be, of such income shall be regarded as the agricultural income of

Rule 1.—(1) Agricultural income of the nature referred to in section the assessee.

2(1A)(a) of the Income-tax Act, 1961 (43 of 1961) (hereafter in this Part IV-A referred to as the said Act) shall be computed as if it were income chargeable to

Rule 5.—Where the assessee is a member of an association of persons income-tax under the said Act under the head “Income from other sources” and or a body of individuals (other than a Hindu undivided family, a company or a the provisions of sections 57 to 59 of the said Act shall, so far as may be, apply firm) which in the previous year has either no income chargeable to tax under accordingly.

the said Act or has total income not exceeding the maximum amount not chargeable to tax in the case of an association of persons or a body of individuals

(2) For the purposes of sub-rule (1), section 58(2) of the said Act shall (other than a Hindu undivided family, a company or a firm) but has any apply subject to the modification that the reference to section 40A of the said agricultural income then, the agricultural income or loss of the association or Act therein shall be construed as not including a reference to sub-sections (3), body shall be computed in accordance with these rules and the share of the

(3A) and (4) of section 40A. assessee in the agricultural income or loss so computed shall be regarded as the agricultural income or loss of the assessee.

Rule 2.—Agricultural income of the nature referred to in section 2(1A)(b) or (c) of the said Act [other than income derived from any building

Rule 6.—(1) Where the result of the computation for the previous year required as a dwelling-house by the receiver of the rent or revenue of the in respect of any source of agricultural income is a loss, such loss shall be set cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c)] off against the income of the assessee, if any, for that previous year from any shall be computed as if it were income chargeable to income-tax under the said other source of agricultural income.

Act under the head “Profits and gains of business or profession” and the provisions of sections 30, 31, 32, 36, 37, 38, 40, 40A [other than sub-sections

(2) Irrespective of anything contained in sub-rule (1), where the assessee

(3), (3A) and (4) thereof], 41, 43, 43A, 43B and 43C of the said Act shall, so far is a member of an association of persons or a body of individuals and the share as may be, apply accordingly. of the assessee in the agricultural income of the association or body, as the case may be, is a loss, such loss shall not be set off against any income of the assessee

Rule 3.—Agricultural income of the nature referred to in section from any other source of agricultural income.

2(1A)(c) of the said Act, being income derived from any building required as a dwelling-house by the receiver of the rent or revenue or the cultivator or the

Rule 7.—Any sum payable by the assessee on account of any tax levied receiver of rent-in-kind referred to in the said sub-clause (c) shall be computed by the State Government on the agricultural income shall be deducted in as if it were income chargeable to income-tax under the said Act under the head computing the agricultural income.

“Income from house property” and the provisions of sections 23 to 27 of that Act shall, so far as may be, apply accordingly.

Rule 8.—(1) Where the assessee has, in the previous year relevant to the assessment year commencing on the 1st April, 2026, any agricultural income

Rule 4.—Irrespective of anything contained in any other provisions of and the net result of the computation of the agricultural income of the assessee these rules, in a case— for any one or more of the previous years relevant to the assessment years commencing on the 1st April, 2018 or the 1st April, 2019 or the 1st April, 2020

(a) where the assessee derives income from sale of tea grown or the 1st April, 2021 or the 1st April, 2022 or the 1st April, 2023 or the 1st and manufactured by him in India, such income shall be computed as April, 2024, or the 1st April, 2025, is a loss, then, for the purposes of section per rule 8 of the Income-tax Rules, 1962, and 60% of such income shall 2(2) of this Act,— be regarded as the agricultural income of the assessee;

(i) the loss so computed for the previous year relevant to the

(b) where the assessee derives income from sale of centrifuged assessment year commencing on the 1st April, 2018, to the extent, if latex or cenex or latex based crepes (such as pale latex crepe) or brown any, such loss has not been set off against the agricultural income for crepes (such as estate brown crepe, re-milled crepe, smoked blanket the previous year relevant to the assessment year commencing on the crepe or flat bark crepe) or technically specified block rubbers 1st April, 2019 or the 1st April, 2020 or the 1st April, 2021 or the 1st manufactured or processed by him from rubber plants grown by him in136 136 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— April, 2022 or the 1st April, 2023 or the 1st April, 2024, or the 1st April, 2025;

(ii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st April, 2019, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st April, 2020 or the 1st April, 2021 or the 1st April, 2022 or the 1st April, 2023 or the 1st April, 2024, or the 1st April, 2025;

(iii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st April, 2020, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st April, 2021 or the 1st April, 2022 or the 1st April, 2023 or the 1st April, 2024, or the 1st April, 2025;

(iv) the loss so computed for the previous year relevant to the assessment year commencing on the 1st April, 2021, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st April, 2022 or the 1st April, 2023 or the 1st April, 2024, or the 1st April, 2025;

(v) the loss so computed for the previous year relevant to the assessment year commencing on the 1st April, 2022, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st April, 2023 or the 1st April, 2024, or the 1st April, 2025;

(vi) the loss so computed for the previous year relevant to the assessment year commencing on the 1st April, 2023, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st April, 2024, or the 1st April, 2025;

(vii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st April, 2024, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st April, 2025;

(viii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st April, 2025, shall be set off against the agricultural income of the assessee for the previous year relevant to the assessment year commencing on the 1st April, 2026.

(2) Where any person deriving any agricultural income from any source has been succeeded in such capacity by another person, otherwise than by inheritance, nothing in sub-rule (1) shall entitle any person, other than the person incurring the loss, to have it set off under sub-rule (1).

(3) Irrespective of anything contained in this rule, no loss which has not been determined by the Assessing Officer under the provisions of these rules or the rules contained in the First Schedule to the Finance Act, 2018 (13 of 2018) or the First Schedule to the Finance (No. 2) Act, 2019 (23 of 2019) or the First Schedule to the Finance Act, 2020 (12 of 2020) or the First Schedule to the136 137 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 137 April, 2022 or the 1st April, 2023 or the 1st April, 2024, or the 1st April, Finance Act, 2021 (13 of 2021) or the First Schedule to the Finance Act, 2022 2025; (6 of 2022) or the First Schedule to the Finance Act, 2023 (8 of 2023) or the

(ii) the loss so computed for the previous year relevant to the First Schedule to the Finance (No. 2) Act, 2024 (15 of 2024) or the First assessment year commencing on the 1st April, 2019, to the extent, if Schedule to the Finance Act, 2025 (7 of 2025) shall be set off under sub-rule (1).

any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the Rule 9.—Where the net result of the computation made as per these rules 1st April, 2020 or the 1st April, 2021 or the 1st April, 2022 or the 1st is a loss, the loss so computed shall be ignored and the net agricultural income April, 2023 or the 1st April, 2024, or the 1st April, 2025; shall be deemed to be nil.

(iii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st April, 2020, to the extent, if Rule 10.—The provisions of the said Act relating to procedure for any, such loss has not been set off against the agricultural income for assessment (including the provisions of section 288A relating to rounding off of the previous year relevant to the assessment year commencing on the income) shall, with the necessary modifications, apply in relation to the 1st April, 2021 or the 1st April, 2022 or the 1st April, 2023 or the 1st computation of the net agricultural income of the assessee as they apply in April, 2024, or the 1st April, 2025; relation to the assessment of the total income.

(iv) the loss so computed for the previous year relevant to the assessment year commencing on the 1st April, 2021, to the extent, if Rule 11.—For the purposes of computing the net agricultural income of any, such loss has not been set off against the agricultural income for the assessee, the Assessing Officer shall have the same powers as he has under the previous year relevant to the assessment year commencing on the the said Act for the purposes of assessment of the total income.

1st April, 2022 or the 1st April, 2023 or the 1st April, 2024, or the 1st April, 2025; B.–– UNDER THE INCOME-TAX ACT, 2025

(v) the loss so computed for the previous year relevant to the [See section 3(18)(c)] assessment year commencing on the 1st April, 2022, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the Rule 1.—(1) Agricultural income of the nature referred to in section 1st April, 2023 or the 1st April, 2024, or the 1st April, 2025; 2(5)(a) of the Income-tax Act, 2025 (30 of 2025) (hereafter in this Part IV-B

(vi) the loss so computed for the previous year relevant to the referred to as the said Act) shall be computed as if it were income chargeable to assessment year commencing on the 1st April, 2023, to the extent, if income-tax under the said Act under the head “Income from other sources” and any, such loss has not been set off against the agricultural income for the provisions of sections 93 to 95 of the said Act shall, so far as may be, apply the previous year relevant to the assessment year commencing on the accordingly.

1st April, 2024, or the 1st April, 2025;

(vii) the loss so computed for the previous year relevant to the (2) For the purposes of sub-rule (1), section 94(2) of the said Act shall assessment year commencing on the 1st April, 2024, to the extent, if apply subject to the modification that the reference to section 36 of the said Act any, such loss has not been set off against the agricultural income for therein shall be construed as not including a reference to sub-sections (4), (5), the previous year relevant to the assessment year commencing on the (6), (7) and (8) of section 36.

1st April, 2025;

(viii) the loss so computed for the previous year relevant to the Rule 2.—Agricultural income of the nature referred to in section 2(5)(b) assessment year commencing on the 1st April, 2025, or (c) of the said Act [other than income derived from any building required as a dwelling-house by the receiver of the rent or revenue of the cultivator or the shall be set off against the agricultural income of the assessee for the previous receiver of rent-in-kind referred to in the said sub-clause (c)] shall be computed year relevant to the assessment year commencing on the 1st April, 2026. as if it were income chargeable to income-tax under the said Act under the head “Profits and gains of business or profession” and the provisions of sections 28,

(2) Where any person deriving any agricultural income from any source 29, 30, 31, 32, 33, 34, 35, 36 [other than sub-sections (4), (5), (6), (7) and (8) has been succeeded in such capacity by another person, otherwise than by thereof], 37, 38, 39, 40, 42 and 66 of the said Act shall, so far as may be, apply inheritance, nothing in sub-rule (1) shall entitle any person, other than the person accordingly.

incurring the loss, to have it set off under sub-rule (1).

Rule 3.—Agricultural income of the nature referred to in section 2(5)(c)

(3) Irrespective of anything contained in this rule, no loss which has not of the said Act, being income derived from any building required as a dwelling- been determined by the Assessing Officer under the provisions of these rules or house by the receiver of the rent or revenue or the cultivator or the receiver of the rules contained in the First Schedule to the Finance Act, 2018 (13 of 2018) rent-in-kind referred to in the said sub-clause (c) shall be computed as if it were or the First Schedule to the Finance (No. 2) Act, 2019 (23 of 2019) or the First income chargeable to income-tax under the said Act under the head “Income Schedule to the Finance Act, 2020 (12 of 2020) or the First Schedule to the138 138 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— from house property” and the provisions of sections 21 to 25 of the said Act shall, so far as may be, apply accordingly.

Rule 4.—Irrespective of anything contained in any other provisions of these rules, in a case—

(a) where the assessee derives income from sale of tea grown and manufactured by him in India, such income shall be computed as per rules notified for the purposes of the said Act, and 60% of such income shall be regarded as the agricultural income of the assessee;

(b) where the assessee derives income from sale of centrifuged latex or cenex or latex based crepes (such as pale latex crepe) or brown crepes (such as estate brown crepe, re-milled crepe, smoked blanket crepe or flat bark crepe) or technically specified block rubbers manufactured or processed by him from rubber plants grown by him in India, such income shall be computed as per rules notified for the purposes of the said Act, and 65% of such income shall be regarded as the agricultural income of the assessee;

(c) where the assessee derives income from sale of coffee grown and manufactured by him in India, such income shall be computed as per rules notified for the purposes of the said Act, and 60% or 75%, as the case may be, of such income shall be regarded as the agricultural income of the assessee.

Rule 5.—Where the assessee is a member of an association of persons or a body of individuals (other than a Hindu undivided family, a company or a firm) which in the tax year has either no income chargeable to tax under the said Act or has total income not exceeding the maximum amount not chargeable to tax in the case of an association of persons or a body of individuals (other than a Hindu undivided family, a company or a firm) but has any agricultural income then, the agricultural income or loss of the association or body shall be computed in accordance with these rules and the share of the assessee in the agricultural income or loss so computed shall be regarded as the agricultural income or loss of the assessee.

Rule 6.—(1) Where the result of the computation for the tax year in respect of any source of agricultural income is a loss, such loss shall be set off against the income of the assessee, if any, for that tax year from any other source of agricultural income.

(2) Irrespective of anything contained in sub-rule (1), where the assessee is a member of an association of persons or a body of individuals and the share of the assessee in the agricultural income of the association or body, as the case may be, is a loss, such loss shall not be set off against any income of the assessee from any other source of agricultural income.

Rule 7.—Any sum payable by the assessee on account of any tax levied by the State Government on the agricultural income shall be deducted in computing the agricultural income.139 138 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 139

Rule 8.—(1) Where the assessee has, in the tax year commencing on the from house property” and the provisions of sections 21 to 25 of the said Act 1st April, 2026, or, if by virtue of any provision of the said Act, income-tax is shall, so far as may be, apply accordingly.

to be charged in respect of the income of a period other than the tax year, in such

Rule 4.—Irrespective of anything contained in any other provisions of other period, any agricultural income and the net result of the computation of the agricultural income of the assessee for any one or more of the tax years these rules, in a case— commencing on the 1st April, 2018 or the 1st April, 2019 or the 1st April, 2020

(a) where the assessee derives income from sale of tea grown or the 1st April, 2021 or the 1st April, 2022 or the 1st April, 2023 or the 1st April, 2024, or the 1st April, 2025, is a loss, then, for the purposes of section and manufactured by him in India, such income shall be computed as 2(2) or (10) of this Act,— per rules notified for the purposes of the said Act, and 60% of such income shall be regarded as the agricultural income of the assessee;

(i) the loss so computed for the tax year commencing on the 1st April, 2018, to the extent, if any, such loss has not been set off against

(b) where the assessee derives income from sale of centrifuged the agricultural income for the tax year commencing on the 1st April, latex or cenex or latex based crepes (such as pale latex crepe) or brown 2019 or the 1st April, 2020 or the 1st April, 2021 or the 1st April, 2022 crepes (such as estate brown crepe, re-milled crepe, smoked blanket or the 1st April, 2023 or the 1st April, 2024, or the 1st April, 2025;

crepe or flat bark crepe) or technically specified block rubbers manufactured or processed by him from rubber plants grown by him in

(ii) the loss so computed for the tax year commencing on the India, such income shall be computed as per rules notified for the 1st April, 2019, to the extent, if any, such loss has not been set off purposes of the said Act, and 65% of such income shall be regarded as against the agricultural income for the tax year commencing on the 1st the agricultural income of the assessee;

April, 2020 or the 1st April, 2021 or the 1st April, 2022 or the 1st April, 2023 or the 1st April, 2024, or the 1st April, 2025;

(c) where the assessee derives income from sale of coffee grown and manufactured by him in India, such income shall be computed as

(iii) the loss so computed for the tax year commencing on the per rules notified for the purposes of the said Act, and 60% or 75%, as 1st April, 2020, to the extent, if any, such loss has not been set off the case may be, of such income shall be regarded as the agricultural against the agricultural income for the tax year commencing on the 1st income of the assessee.

April, 2021 or the 1st April, 2022 or the 1st April, 2023 or the 1st April,

Rule 5.—Where the assessee is a member of an association of persons 2024, or the 1st April, 2025; or a body of individuals (other than a Hindu undivided family, a company or a

(iv) the loss so computed for the tax year commencing on the firm) which in the tax year has either no income chargeable to tax under the said 1st April, 2021, to the extent, if any, such loss has not been set off Act or has total income not exceeding the maximum amount not chargeable to against the agricultural income for the tax year commencing on the 1st tax in the case of an association of persons or a body of individuals (other than April, 2022 or the 1st April, 2023 or the 1st April, 2024, or the 1st April, a Hindu undivided family, a company or a firm) but has any agricultural income 2025;

then, the agricultural income or loss of the association or body shall be computed in accordance with these rules and the share of the assessee in the agricultural

(v) the loss so computed for the tax year commencing on the 1st income or loss so computed shall be regarded as the agricultural income or loss April, 2022, to the extent, if any, such loss has not been set off against of the assessee.

the agricultural income for the tax year commencing on the 1st April,

Rule 6.—(1) Where the result of the computation for the tax year in 2023 or the 1st April, 2024, or the 1st April, 2025; respect of any source of agricultural income is a loss, such loss shall be set off

(vi) the loss so computed for the tax year commencing on the against the income of the assessee, if any, for that tax year from any other source 1st April, 2023, to the extent, if any, such loss has not been set off of agricultural income.

against the agricultural income for the tax year commencing on the 1st April, 2024, or the 1st April, 2025;

(2) Irrespective of anything contained in sub-rule (1), where the assessee is a member of an association of persons or a body of individuals and the share

(vii) the loss so computed for the tax year commencing on the of the assessee in the agricultural income of the association or body, as the case 1st April, 2024, to the extent, if any, such loss has not been set off may be, is a loss, such loss shall not be set off against any income of the assessee against the agricultural income for the tax year commencing on the 1st from any other source of agricultural income.

April, 2025;

Rule 7.—Any sum payable by the assessee on account of any tax levied by the State Government on the agricultural income shall be deducted in computing the agricultural income.140 140 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—

(viii) the loss so computed for the tax year commencing on the 1st April, 2025, shall be set off against the agricultural income of the assessee for the tax year commencing on the 1st April, 2026.

(3) Irrespective of anything contained in this rule, no loss which has not been determined by the Assessing Officer under the provisions of these rules or the rules contained in the First Schedule to the Finance Act, 2018 (13 of 2018) or the First Schedule to the Finance (No. 2) Act, 2019 (23 of 2019) or the First Schedule to the Finance Act, 2020 (12 of 2020) or the First Schedule to the Finance Act, 2021 (13 of 2021) or the First Schedule to the Finance Act, 2022 (6 of 2022) or the First Schedule to the Finance Act, 2023 (8 of 2023) or the First Schedule to the Finance (No. 2) Act, 2024 (15 of 2024) or the First Schedule to the Finance Act, 2025 (7 of 2025) shall be set off under sub-rule (1).

Rule 9.—Where the net result of the computation made as per these rules is a loss, the loss so computed shall be ignored and the net agricultural income shall be deemed to be nil.

Rule 10.—The provisions of the said Act relating to procedure for assessment (including the provisions of section 516 relating to rounding off of income) shall, with the necessary modifications, apply in relation to the computation of the net agricultural income of the assessee as they apply in relation to the assessment of the total income.

Rule 11.—For the purposes of computing the net agricultural income of the assessee, the Assessing Officer shall have the same powers as he has under the said Act for the purposes of assessment of the total income.

(viii) the loss so computed for the tax year commencing on the THE SECOND SCHEDULE 1st April, 2025, [See section 136(a)] shall be set off against the agricultural income of the assessee for the tax year commencing on the 1st April, 2026. In the First Schedule to the Customs Tariff Act, in Chapter 66,––

(i) for the entry in column (4) occurring against tariff items 6601

(2) Where any person deriving any agricultural income from any source 91 00 and 6601 99 00, the entry “20% or Rs. 60 per piece, whichever has been succeeded in such capacity by another person, otherwise than by is higher” shall be substituted;

inheritance, nothing in sub-rule (1) shall entitle any person, other than the person incurring the loss, to have it set off under sub-rule (1).

(ii) for the entry in column (4) occurring against tariff items 6603

(3) Irrespective of anything contained in this rule, no loss which has not 20 00, 6603 90 10 and 6603 90 90, the entry “10% or Rs. 25 per kg., been determined by the Assessing Officer under the provisions of these rules or whichever is higher” shall be substituted.

the rules contained in the First Schedule to the Finance Act, 2018 (13 of 2018) or the First Schedule to the Finance (No. 2) Act, 2019 (23 of 2019) or the First Schedule to the Finance Act, 2020 (12 of 2020) or the First Schedule to the Finance Act, 2021 (13 of 2021) or the First Schedule to the Finance Act, 2022 (6 of 2022) or the First Schedule to the Finance Act, 2023 (8 of 2023) or the First Schedule to the Finance (No. 2) Act, 2024 (15 of 2024) or the First Schedule to the Finance Act, 2025 (7 of 2025) shall be set off under sub-rule (1).

Rule 9.—Where the net result of the computation made as per these rules is a loss, the loss so computed shall be ignored and the net agricultural income shall be deemed to be nil.

Rule 12.— Where a reference is made in this Part to any tax year commencing on the 1st April 2025 or to any earlier tax year, the same shall be construed as a reference to the corresponding previous year under the Income- tax Act, 1961 (43 of 1961) as provided in section 536(3) of the said Act.142 143 142 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— THE THIRD SCHEDULE THE FOURTH SCHEDULE [See section 136(b)] [See section 136(c)(i)] In the First Schedule to the Customs Tariff Act, in Chapter 98, for the In the First Schedule to the Customs Tariff Act,–– entry in column (4) occurring against all the tariff items of heading 9804, the entry “10%” shall be substituted.

Tariff Description of Unit Rate of duty Item goods Standard Preferential

(1) (2) (3) (4) (5)

(1) in Chapter 3, in heading 0306, for tariff item 0306 19 00 and the entries relating thereto, the following shall be substituted, namely:— “0306 19 -- Other :

0306 19 10 --- Krill kg. 15% - 0306 19 90 --- Other kg. 30% -”;

(2) in Chapter 8,––

(i) in heading 0802, for tariff item 0802 99 00 and the entries relating thereto, the following shall be substituted, namely:— “0802 99 -- Other :

0802 99 10 --- Pecan nuts kg. 30% 90% 0802 99 90 --- Other kg. 100% 90%”;

(ii) in heading 0810, for tariff item 0810 40 00 and the entries relating thereto, the following shall be substituted, namely:— “0810 40 - Cranberries, bilberries and other fruits of the

genus Vaccinium :

0810 40 10 --- Cranberries kg. 10% 20% 0810 40 20 --- Blueberries kg. 10% 20% 0810 40 90 --- Other kg. 30% 20%”;142 143 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 143 THE THIRD SCHEDULE THE FOURTH SCHEDULE [See section 136(b)] [See section 136(c)(i)] In the First Schedule to the Customs Tariff Act, in Chapter 98, for the In the First Schedule to the Customs Tariff Act,–– entry in column (4) occurring against all the tariff items of heading 9804, the entry “10%” shall be substituted.

Tariff Description of Unit Rate of duty Item goods Standard Preferential

(1) (2) (3) (4) (5)

(1) in Chapter 3, in heading 0306, for tariff item 0306 19 00 and the entries relating thereto, the following shall be substituted, namely:— “0306 19 -- Other :

0306 19 10 --- Krill kg. 15% - 0306 19 90 --- Other kg. 30% -”;

(2) in Chapter 8,––

(i) in heading 0802, for tariff item 0802 99 00 and the entries relating thereto, the following shall be substituted, namely:— “0802 99 -- Other :

0802 99 10 --- Pecan nuts kg. 30% 90% 0802 99 90 --- Other kg. 100% 90%”;

(ii) in heading 0810, for tariff item 0810 40 00 and the entries relating thereto, the following shall be substituted, namely:— “0810 40 - Cranberries, bilberries and other fruits of the

genus Vaccinium :

0810 40 10 --- Cranberries kg. 10% 20% 0810 40 20 --- Blueberries kg. 10% 20% 0810 40 90 --- Other kg. 30% 20%”;144 145 144 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—

(iii) in heading 0811, for tariff items 0811 90 10 to 0811 90 90 and the entries relating thereto, 1302 19 27 ---- Of Capsicum annuum kg. 30% - the following shall be substituted, namely:— 1302 19 28 ---- Of Phaseolus vulgaris kg. 30% - 1302 19 31 ---- Of Piper nigrum kg. 30% - “--- Containing added sugar :

1302 19 32 ---- Of Pterocarpus marsupium kg. 30% - 0811 90 11 ---- Cranberries kg. 10% 20% 1302 19 33 ---- Of Punica granatum kg. 30% - 0811 90 12 ---- Blueberries kg. 10% 20% 1302 19 34 ---- Of Salacia reticulata kg. 30% - 0811 90 19 ---- Other kg. 30% 20% 1302 19 35 ---- Of Tagetes erecta kg. 30% - --- Other :

1302 19 36 ---- Of Terminalia bellirica kg. 30% - 0811 90 91 ---- Cranberries kg. 10% 20% 1302 19 37 ---- Of Curcuma longa kg. 30% - 0811 90 92 ---- Blueberries kg. 10% 20% 1302 19 38 ---- Of Zingiber officinale kg. 30% - 0811 90 99 ---- Other kg. 30% 20%”;

1302 19 39 ---- Other kg. 30% - 1302 19 50 --- Cashew shell liquid (CNSL), crude kg. 30% -

(iv) in heading 0813, after tariff item 0813 40 20 and the entries relating thereto, the following 1302 19 60 --- Purified and distilled CNSL (Cardanol) kg. 30% -”; shall be inserted, namely:—

(5) in Chapter 20, in heading 2008,–– “0813 40 30 --- Cranberries kg. 10% 20%

(i) for tariff item 2008 93 00 and the entries relating thereto, the following shall be 0813 40 40 --- Blueberries kg. 10% 20%”; substituted, namely:—

(3) in Chapter 12, in heading 1207, after tariff item 1207 99 40 and the entries relating thereto, the following shall be inserted, namely:— “2008 93 -- Cranberries (Vaccinium macrocarpon, Vaccinium oxycoccos); lingonberries “1207 99 50 --- Shea nuts kg. 15% 20%”; (Vaccinium vitis-idaea) :

2008 93 10 --- Cranberries (Vaccinium macrocarpon, kg. 5% - Vaccinium oxycoccos) 2008 93 90 --- Other kg. 30% -”;

(4) in Chapter 13, in heading 1302, for tariff items 1302 19 19 to 1302 19 30 and the entries relating thereto, the following shall be substituted, namely:—

(ii) after tariff item 2008 99 14 and the entries relating thereto, the following shall be inserted,

namely:— “1302 19 21 ---- Of Withania somnifera kg. 30% - 1302 19 22 ---- Of Bacopa monnieri kg. 30% - “2008 99 15 ---- Blueberries kg. 10% -”;

1302 19 23 ---- Of Berberis aristata kg. 30% - 1302 19 24 ---- Of Boswellia serrata kg. 30% -

(iii) after tariff item 2008 99 94 and the entries relating thereto, the following shall be inserted, 1302 19 25 ---- Of Emblica officinalis kg. 30% - namely:— 1302 19 26 ---- Of Ocimum sanctum kg. 30% - “2008 99 95 ---- Blueberries kg. 10% -”;145 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 145 1302 19 27 ---- Of Capsicum annuum kg. 30% - 1302 19 28 ---- Of Phaseolus vulgaris kg. 30% - 1302 19 31 ---- Of Piper nigrum kg. 30% - 1302 19 32 ---- Of Pterocarpus marsupium kg. 30% - 1302 19 33 ---- Of Punica granatum kg. 30% - 1302 19 34 ---- Of Salacia reticulata kg. 30% - 1302 19 35 ---- Of Tagetes erecta kg. 30% - 1302 19 36 ---- Of Terminalia bellirica kg. 30% - 1302 19 37 ---- Of Curcuma longa kg. 30% - 1302 19 38 ---- Of Zingiber officinale kg. 30% - 1302 19 39 ---- Other kg. 30% - 1302 19 50 --- Cashew shell liquid (CNSL), crude kg. 30% - 1302 19 60 --- Purified and distilled CNSL (Cardanol) kg. 30% -”;

(5) in Chapter 20, in heading 2008,––

(i) for tariff item 2008 93 00 and the entries relating thereto, the following shall be substituted, namely:— “2008 93 -- Cranberries (Vaccinium macrocarpon, Vaccinium oxycoccos); lingonberries (Vaccinium vitis-idaea) :

2008 93 10 --- Cranberries (Vaccinium macrocarpon, kg. 5% - Vaccinium oxycoccos) 2008 93 90 --- Other kg. 30% -”;

(ii) after tariff item 2008 99 14 and the entries relating thereto, the following shall be inserted,

namely:— “2008 99 15 ---- Blueberries kg. 10% -”;

(iii) after tariff item 2008 99 94 and the entries relating thereto, the following shall be inserted,

namely:— “2008 99 95 ---- Blueberries kg. 10% -”;146 147 146 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—

(6) in Chapter 21, in heading 2106, for tariff item 2106 90 50 and the entries relating thereto, the following “2615 10 - Zirconium ores and concentrates : shall be substituted, namely:— 2615 10 10 --- Hafnium kg. Free - 2615 10 90 --- Other kg. Free -”;

“--- Compound preparations for making beverages :

2106 90 51 ---- Compound alcoholic preparations of a kind used kg. 150% - for the manufacture of beverages, of an alcoholic strength by volume exceeding 0.5% vol., (10) in Chapter 28, in heading 2841, for tariff item 2841 90 00 and the entries relating thereto, the following determined at 20 ℃ shall be substituted, namely:— 2106 90 59 ---- Other kg. 50% -”;

“2841 90 - Other :

2841 90 10 --- Ammonium metavanadate kg. 2.5% -

(7) in Chapter 22, in heading 2202, for tariff items 2202 99 20 to 2202 99 90 and the entries relating thereto, 2841 90 90 --- Other kg. 7.5% -”; the following shall be substituted, namely:— “--- Fruit pulp or fruit juice based drinks :

(11) in Chapter 29,— 2202 99 21 ---- Cranberry products l 10% - 2202 99 29 ---- Other l 30% -

(i) in heading 2905, tariff item 2905 14 30 and the entries relating thereto shall be --- Beverages containing milk : omitted;

2202 99 31 ---- Cranberry products l 10% -

(ii) in heading 2915,–– 2202 99 39 ---- Other l 30% - --- Other :

(a) for tariff item 2915 90 10 and the entries relating thereto, the following shall be 2202 99 91 ---- Cranberry products l 10% - substituted, namely:— 2202 99 99 ---- Other l 30% -”; “--- Acetyl chloride, Propionyl chloride :

2915 90 11 ---- Acetyl chloride kg. 7.5% - 2915 90 12 ---- Propionyl chloride kg. 7.5% -”;

(8) in Chapter 25, in heading 2529, for tariff item 2529 22 00 and the entries relating thereto, the following shall be substituted, namely:—

(b) after tariff item 2915 90 95 and the entries relating thereto, the following shall be inserted, namely:— “2529 22 -- Containing by weight more than 97 % of calcium

fluoride : “2915 90 96 ---- Triethyl orthoformate kg. 5% -”;

2529 22 10 --- Acid grade kg. 2.5% - 2529 22 90 --- Other kg. 5% -”;

(iii) in heading 2916, for tariff item 2916 34 00 and the entries relating thereto, the following shall

(9) in Chapter 26, in heading 2615, for tariff item 2615 10 00 and the entries relating thereto, the following be substituted, namely:— shall be substituted, namely:—147 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 147 “2615 10 - Zirconium ores and concentrates :

2615 10 10 --- Hafnium kg. Free - 2615 10 90 --- Other kg. Free -”;

(10) in Chapter 28, in heading 2841, for tariff item 2841 90 00 and the entries relating thereto, the following shall be substituted, namely:— “2841 90 - Other :

2841 90 10 --- Ammonium metavanadate kg. 2.5% - 2841 90 90 --- Other kg. 7.5% -”;

(11) in Chapter 29,—

(i) in heading 2905, tariff item 2905 14 30 and the entries relating thereto shall be omitted;

(ii) in heading 2915,––

(a) for tariff item 2915 90 10 and the entries relating thereto, the following shall be substituted, namely:— “--- Acetyl chloride, Propionyl chloride :

2915 90 11 ---- Acetyl chloride kg. 7.5% - 2915 90 12 ---- Propionyl chloride kg. 7.5% -”;

(b) after tariff item 2915 90 95 and the entries relating thereto, the following shall be inserted, namely:— “2915 90 96 ---- Triethyl orthoformate kg. 5% -”;

(iii) in heading 2916, for tariff item 2916 34 00 and the entries relating thereto, the following shall be substituted, namely:—148 149 148 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— “2916 34 -- Phenylacetic acid and its salts : (b) for tariff item 2922 43 00 and the entries relating thereto, the following shall be substituted, namely:— 2916 34 10 --- Phenylacetic acid kg. 7.5% - 2916 34 90 --- Other kg. 7.5% -”;

“2922 43 -- Anthranilic acid and its salts :

2922 43 10 --- Anthranilic acid kg. 7.5% -

(iv) in heading 2917,– 2922 43 90 --- Other kg. 7.5% -”;

(a) for tariff item 2917 19 20 and the entries relating thereto, the following shall be substituted, namely:— (vii) in heading 2924, for tariff item 2924 29 90 and the entries relating thereto, the following shall be substituted, namely:— “--- Malonic acid, its salts and esters :

2917 19 21 ---- Malonic acid kg. 7.5% - “--- Other :

2917 19 22 ---- Diethyl malonate kg. 5% - 2924 29 91 ---- Alpha-phenylacetoacetamide kg. 7.5% - 2917 19 29 ---- Other kg. 7.5% -”;

2924 29 99 ---- Other kg. 7.5% -”;

(b) for the entry in column (2) occurring against tariff item 2917 19 70, the entry “--- Ethoxy methylene malonate” shall be substituted; (viii) in heading 2927, after tariff item 2927 00 10 and the entries relating thereto, the following shall be inserted, namely:—

(v) in heading 2918,––

(a) after tariff item 2918 30 60 and the entries relating thereto, the following shall be “2927 00 20 --- Azobisisobutyronitrile (AIBN) kg. 7.5% -”; inserted, namely:—

(ix) in heading 2932,–– “2918 30 70 --- Methyl alpha-phenylacetoacetate kg. 7.5% -”;

(a) after tariff item 2932 20 30 and the entries relating thereto, the following shall be

(b) after tariff item 2918 99 30 and the entries relating thereto, the following shall be inserted, namely:— inserted, namely:— “2918 99 40 --- P-2-P methyl glycidic acid and its esters kg. 7.5% -”; “2932 20 40 --- Gibberellic acid kg. 5% - 2932 20 50 --- Aceto butyrolactone kg. 5% -”;

(vi) in heading 2922,––

(b) after tariff item 2932 99 20 and the entries relating thereto, the following shall be inserted, namely:—

(a) after tariff item 2922 19 19 and the entries relating thereto, the following shall be inserted, namely:— “2932 99 30 --- Artemisinin kg. 5% - 2932 99 40 --- 3,4-MDP-2-P methyl glycidic acid kg. 7.5% - “2922 19 30 --- DL-2 Aminobutanol kg. 5% -”;

2932 99 50 --- 3,4-MDP-2-P methyl glycidate kg. 7.5% -”;149 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 149

(b) for tariff item 2922 43 00 and the entries relating thereto, the following shall be substituted, namely:— “2922 43 -- Anthranilic acid and its salts :

2922 43 10 --- Anthranilic acid kg. 7.5% - 2922 43 90 --- Other kg. 7.5% -”;

(vii) in heading 2924, for tariff item 2924 29 90 and the entries relating thereto, the following shall be substituted, namely:— “--- Other :

2924 29 91 ---- Alpha-phenylacetoacetamide kg. 7.5% - 2924 29 99 ---- Other kg. 7.5% -”;

(viii) in heading 2927, after tariff item 2927 00 10 and the entries relating thereto, the following shall be inserted, namely:— “2927 00 20 --- Azobisisobutyronitrile (AIBN) kg. 7.5% -”;

(ix) in heading 2932,––

(a) after tariff item 2932 20 30 and the entries relating thereto, the following shall be inserted, namely:— “2932 20 40 --- Gibberellic acid kg. 5% - 2932 20 50 --- Aceto butyrolactone kg. 5% -”;

(b) after tariff item 2932 99 20 and the entries relating thereto, the following shall be inserted, namely:— “2932 99 30 --- Artemisinin kg. 5% - 2932 99 40 --- 3,4-MDP-2-P methyl glycidic acid kg. 7.5% - 2932 99 50 --- 3,4-MDP-2-P methyl glycidate kg. 7.5% -”;150 151 150 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—

(x) in heading 2933,–– 2939 42 10 --- Pseudoephedrine (INN) kg. 7.5% 10% 2939 42 90 --- Other kg. 7.5% 10%”;

(a) for tariff item 2933 32 10 and the entries relating thereto, the following shall be substituted, namely:—

(b) for tariff item 2939 44 00 and the entries relating thereto, the following shall be “2933 32 20 --- Piperidine kg. 7.5% - substituted, namely:— 2933 32 30 --- Mepiquate chloride kg. 7.5% -”; “2939 44 -- Norephedrine and its salts :

2939 44 10 --- Norephedrine kg. 7.5% -

(b) for the entry in column (2) occurring against tariff item 2933 37 00, the entry “-- N-Phenethyl-4-piperidone (NPP)” shall be substituted; 2939 44 90 --- Other kg. 7.5% -”;

(c) for tariff item 2939 63 00 and the entries relating thereto, the following shall be inserted, namely:— substituted, namely:— “2933 39 70 --- 4-Piperidone kg. 7.5% - “2939 63 -- Lysergic acid and its salts :

2933 39 80 --- 1-Boc-4-piperidone kg. 7.5% -”;

2939 63 10 --- Lysergic acid kg. 7.5% - 2939 63 90 --- Other kg. 7.5% -”;

(d) for tariff item 2933 39 90 and the entries relating thereto, the following shall be substituted, namely:—

(12) in Chapter 33, in heading 3302, for tariff items 3302 10 10 to 3302 10 90 and the entries relating thereto, the following shall be substituted, namely:— “--- Other :

2933 39 91 ---- Norfentanyl kg. 7.5% - “--- Synthetic flavouring essences :

2933 39 99 ---- Other kg. 7.5% -”;

3302 10 11 ---- Compound alcoholic preparations of a kind used kg. 20% - for the manufacture of beverages, of an alcoholic

(xi) in heading 2934, after tariff item 2934 99 40 and the entries relating thereto, the following strength by volume exceeding 0.5 % vol., shall be inserted, namely:— determined at 20 ℃ “2934 99 50 --- Thymidine kg. 5% -”;

3302 10 19 ---- Other kg. 10% - --- Other :

(xii) in heading 2939,–– 3302 10 91 ---- Compound alcoholic preparations of a kind used kg. 20% - for the manufacture of beverages, of an alcoholic

(a) for tariff items 2939 41 00 to 2939 42 00 and the entries relating thereto, the strength by volume exceeding 0.5 % vol., following shall be substituted, namely:— determined at 20 ℃ 3302 10 99 ---- Other kg. 10% -”;

“2939 41 -- Ephedrine and its salts :

2939 41 10 --- Ephedrine kg. 7.5% 10% 2939 41 90 --- Other kg. 7.5% 10% 2939 42 -- Pseudoephedrine (INN) and its salts :151 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 151 2939 42 10 --- Pseudoephedrine (INN) kg. 7.5% 10% 2939 42 90 --- Other kg. 7.5% 10%”;

(b) for tariff item 2939 44 00 and the entries relating thereto, the following shall be substituted, namely:— “2939 44 -- Norephedrine and its salts :

2939 44 10 --- Norephedrine kg. 7.5% - 2939 44 90 --- Other kg. 7.5% -”;

(c) for tariff item 2939 63 00 and the entries relating thereto, the following shall be substituted, namely:— “2939 63 -- Lysergic acid and its salts :

2939 63 10 --- Lysergic acid kg. 7.5% - 2939 63 90 --- Other kg. 7.5% -”;

(12) in Chapter 33, in heading 3302, for tariff items 3302 10 10 to 3302 10 90 and the entries relating thereto, the following shall be substituted, namely:— “--- Synthetic flavouring essences :

3302 10 11 ---- Compound alcoholic preparations of a kind used kg. 20% - for the manufacture of beverages, of an alcoholic strength by volume exceeding 0.5 % vol., determined at 20 ℃ 3302 10 19 ---- Other kg. 10% - --- Other :

3302 10 91 ---- Compound alcoholic preparations of a kind used kg. 20% - for the manufacture of beverages, of an alcoholic strength by volume exceeding 0.5 % vol., determined at 20 ℃ 3302 10 99 ---- Other kg. 10% -”;152 153 152 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—

(13) in Chapter 39, in heading 3923, for tariff item 3923 29 90 and the entries relating thereto, the following 4104 21 90 --- Other kg. 10% -”; shall be substituted, namely:—

(b) for tariff item 4106 31 00 and the entries relating thereto, the following shall be “--- Other : substituted, namely:— 3923 29 91 ---- Biodegradable kg. 15% - 3923 29 99 ---- Other kg. 15% -”; “4106 31 -- In the wet state (including wet-blue) :

4106 31 10 --- Wet blues kg. Free -

(14) in Chapter 41,–– 4104 31 90 --- Other kg. 10% -”;

(i) in heading 4104, for tariff items 4104 11 00 to 4104 19 00 and the entries relating thereto, (c) for tariff item 4106 91 00 and the entries relating thereto, the following shall be the following shall be substituted, namely:— substituted, namely:— “4104 11 -- Full grains, unsplit; grain splits : “4106 91 -- In the wet state (including wet-blue) :

4104 11 10 --- Wet blues kg. Free - 4106 91 10 --- Wet blues kg. Free - 4104 11 90 --- Other kg. 10% - 4104 91 90 --- Other kg. 10% -”;

4104 19 -- Other :

4104 19 10 --- Wet blues kg. Free - 4104 19 90 --- Other kg. 10% -”; (15) in Chapter 47, in heading 4702, for tariff item 4702 00 00 and the entries relating thereto, the following shall be substituted, namely:—

(ii) in heading 4105, for tariff item 4105 10 00 and the entries relating thereto, the following shall be substituted, namely:— “4702 CHEMICAL WOOD PULP, DISSOLVING GRADES 4702 00 - Chemical wood pulp, dissolving grades :

“4105 10 - In the wet state (including wet-blue) :

4702 00 10 --- Rayon grade wood pulp kg. 2.5% - 4105 10 10 --- Wet blues kg. Free - 4702 00 90 --- Other kg. 5% -”;

4105 10 90 --- Other kg. 10% -”;

(iii) in heading 4106,––

(16) in Chapter 48, in heading 4823, after tariff item 4823 90 30 and the entries relating thereto, the following shall be inserted, namely:—

(a) for tariff item 4106 21 00 and the entries relating thereto, the following shall be substituted, namely:— “4823 90 40 --- Kites kg. 20% -”; “4106 21 -- In the wet state (including wet-blue) :

(17) in Chapter 73, — 4106 21 10 --- Wet blues kg. Free -153 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 153 4104 21 90 --- Other kg. 10% -”;

(b) for tariff item 4106 31 00 and the entries relating thereto, the following shall be substituted, namely:— “4106 31 -- In the wet state (including wet-blue) :

4106 31 10 --- Wet blues kg. Free - 4104 31 90 --- Other kg. 10% -”;

(c) for tariff item 4106 91 00 and the entries relating thereto, the following shall be substituted, namely:— “4106 91 -- In the wet state (including wet-blue) :

4106 91 10 --- Wet blues kg. Free - 4104 91 90 --- Other kg. 10% -”;

(15) in Chapter 47, in heading 4702, for tariff item 4702 00 00 and the entries relating thereto, the following shall be substituted, namely:— “4702 CHEMICAL WOOD PULP, DISSOLVING GRADES 4702 00 - Chemical wood pulp, dissolving grades :

4702 00 10 --- Rayon grade wood pulp kg. 2.5% - 4702 00 90 --- Other kg. 5% -”;

(16) in Chapter 48, in heading 4823, after tariff item 4823 90 30 and the entries relating thereto, the following shall be inserted, namely:— “4823 90 40 --- Kites kg. 20% -”;

(17) in Chapter 73, —154 155 154 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—

(i) in heading 7305,— (d) for tariff items 7305 31 10 to 7305 31 90 and the entries relating thereto, the following shall be substituted, namely:—

(a) for tariff items 7305 11 19 to 7305 11 29 and the entries relating thereto, the following shall be substituted, namely:— “--- Galvanised : “7305 11 19 ---- Other kg. 15% - 7305 31 11 ---- Of iron kg. 15% - --- Non-galvanised pipes, of iron : 7305 31 19 ---- Other kg. 15% - 7305 11 31 ---- Clad, plated or coated kg. 15% - --- Non-galvanised, of iron :

7305 11 39 ---- Other kg. 15% - 7305 31 21 ---- Clad, plated or coated kg. 15% - --- Non-galvanised pipes, other : 7305 31 29 ---- Other kg. 15% - 7305 11 41 ---- Clad, plated or coated kg. 15% - --- Non-galvanised, other :

7305 11 49 ---- Other kg. 15% -”; 7305 31 31 ---- Clad, plated or coated kg. 15% - 7305 31 39 ---- Other kg. 15% -”;

(b) for tariff items 7305 12 19 to 7305 12 29 and the entries relating thereto, the following shall be substituted, namely:—

(e) for tariff items 7305 39 10 to 7305 39 90 and the entries relating thereto, the following shall be substituted, namely:— “7305 12 19 ---- Other kg. 15% - --- Non-galvanised pipes, of iron : “--- Galvanised :

7305 12 31 ---- Clad, plated or coated kg. 15% - 7305 39 11 ---- Of iron kg. 15% - 7305 12 39 ---- Other kg. 15% - 7305 39 19 ---- Other kg. 15% - --- Non-galvanised pipes, other : --- Non-galvanised, of iron :

7305 12 41 ---- Clad, plated or coated kg. 15% - 7305 39 21 ---- Clad, plated or coated kg. 15% - 7305 12 49 ---- Other kg. 15% -”;

7305 39 29 ---- Other kg. 15% - --- Non-galvanised, other :

(c) for tariff items 7305 19 19 to 7305 19 29 and the entries relating thereto, the following 7305 39 31 ---- Clad, plated or coated kg. 15% - shall be substituted, namely:— 7305 39 39 ---- Other kg. 15% -”;

“7305 19 19 ---- Other kg. 15% -

(ii) in heading 7306, for tariff items 7306 19 19 to 7306 19 29 and the entries relating thereto, the --- Non-galvanised pipes, of iron : following shall be substituted, namely:— 7305 19 31 ---- Clad, plated or coated kg. 15% - 7305 19 39 ---- Other kg. 15% - “7306 19 19 ---- Other kg. 15% - --- Non-galvanised pipes, other :

--- Non-galvanised pipes, of iron :

7305 19 41 ---- Clad, plated or coated kg. 15% - 7306 19 31 ---- Clad, plated or coated kg. 15% - 7305 19 49 ---- Other kg. 15% -”;

7306 19 39 ---- Other kg. 15% -155 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 155

(d) for tariff items 7305 31 10 to 7305 31 90 and the entries relating thereto, the following shall be substituted, namely:— “--- Galvanised :

7305 31 11 ---- Of iron kg. 15% - 7305 31 19 ---- Other kg. 15% - --- Non-galvanised, of iron :

7305 31 21 ---- Clad, plated or coated kg. 15% - 7305 31 29 ---- Other kg. 15% - --- Non-galvanised, other :

7305 31 31 ---- Clad, plated or coated kg. 15% - 7305 31 39 ---- Other kg. 15% -”;

(e) for tariff items 7305 39 10 to 7305 39 90 and the entries relating thereto, the following shall be substituted, namely:— “--- Galvanised :

7305 39 11 ---- Of iron kg. 15% - 7305 39 19 ---- Other kg. 15% - --- Non-galvanised, of iron :

7305 39 21 ---- Clad, plated or coated kg. 15% - 7305 39 29 ---- Other kg. 15% - --- Non-galvanised, other :

7305 39 31 ---- Clad, plated or coated kg. 15% - 7305 39 39 ---- Other kg. 15% -”;

(ii) in heading 7306, for tariff items 7306 19 19 to 7306 19 29 and the entries relating thereto, the following shall be substituted, namely:— “7306 19 19 ---- Other kg. 15% - --- Non-galvanised pipes, of iron :

7306 19 31 ---- Clad, plated or coated kg. 15% - 7306 19 39 ---- Other kg. 15% -157 156 156 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— --- Non-galvanised pipes, other : (ii) in heading 8529,–– 7306 19 41 ---- Clad, plated or coated kg. 15% - 7306 19 49 ---- Other kg. 15% -”; (a) after tariff item 8529 10 92 and the entries relating thereto, the following shall be inserted, namely:—

(18) in Chapter 81, in heading 8101, after tariff item 8101 99 10 and the entries relating thereto, the following shall be inserted, namely:— “8529 10 93 ---- Other, for apparatus of headings 8525 to u 10% -”;

8527 “8101 99 20 --- Bars and rods, other than those obtained simply kg. 5% -”; by sintering, profiles, plates, sheets, strip and foil (b) after tariff item 8529 90 20 and the entries relating thereto, the following shall be inserted, namely:—

(19) in Chapter 84,–– “8529 90 30 --- Other, for apparatus of headings 8525 to u 10% -”;

(i) in heading 8415, for tariff item 8415 90 00 and the entries relating thereto, the following 8527 shall be substituted, namely:— “8415 90 - Parts :

(21) in Chapter 86, in heading 8609, for tariff item 8609 00 00 and the entries relating thereto, the following 8415 90 10 --- Separately presented indoor units or outdoor u 20% - shall be substituted, namely:— units for split-system air conditioning machines 8415 90 90 --- Other kg. 10% -”;

“8609 CONTAINERS (INCLUDING CONTAINERS FOR THE TRANSPORT OF FLUIDS) SPECIALLY DESIGNED

(ii) in heading 8421, for tariff item 8421 99 00 and the entries relating thereto, the following AND EQUIPPED FOR CARRIAGE BY shall be substituted, namely:— ONE OR MORE MODES OF TRANSPORT “8421 99 -- Other : 8609 00 - Containers (including containers for the transport of fluids) specially designed and 8421 99 10 --- Reverse Osmosis (RO) membrane element u 10% - equipped for carriage by one or more modes for household type filters

of transport :

8421 99 90 --- Other u 7.5% -”;

8609 00 10 --- Refrigerated containers u 5% - 8609 00 90 --- Other u 10% -”.

(20) in Chapter 85, —

(i) in heading 8507, for tariff item 8507 90 10 and the entries relating thereto, the following shall be substituted, namely:— “8507 90 10 --- Accumulator cases made of hard rubber kg. 10% - 8507 90 20 --- Battery separators kg. 5% -”;157 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 157

(ii) in heading 8529,––

(a) after tariff item 8529 10 92 and the entries relating thereto, the following shall be inserted, namely:— “8529 10 93 ---- Other, for apparatus of headings 8525 to u 10% -”;

8527

(b) after tariff item 8529 90 20 and the entries relating thereto, the following shall be inserted, namely:— “8529 90 30 --- Other, for apparatus of headings 8525 to u 10% -”;

8527

(21) in Chapter 86, in heading 8609, for tariff item 8609 00 00 and the entries relating thereto, the following shall be substituted, namely:— “8609 CONTAINERS (INCLUDING CONTAINERS FOR THE TRANSPORT OF FLUIDS) SPECIALLY DESIGNED AND EQUIPPED FOR CARRIAGE BY ONE OR MORE MODES OF TRANSPORT 8609 00 - Containers (including containers for the transport of fluids) specially designed and equipped for carriage by one or more modes

of transport :

8609 00 10 --- Refrigerated containers u 5% - 8609 00 90 --- Other u 10% -”.158 158 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— THE FIFTH SCHEDULE [See section 136(c)(ii)] In the First Schedule to the Customs Tariff Act,––

(1) in Chapter 2, for the entry in column (4) occurring against tariff items 0207 25 00 and 0207 27 00, the entry “5%” shall be substituted;

(2) in Chapter 3, for the entry in column (4) occurring against tariff item 0306 36 60, the entry “Free” shall be substituted;

(3) in Chapter 5, for the entry in column (4) occurring against tariff item 0511 91 40, the entry “Free” shall be substituted;

(4) in Chapter 8,––

(i) for the entry in column (4) occurring against tariff item 0802 11 00, the entry “Rs. 35 per kg.” shall be substituted;

(ii) for the entry in column (4) occurring against tariff item 0802 12 00, the entry “Rs. 100 per kg.” shall be substituted;

(iii) for the entry in column (4) occurring against tariff item 0802 31 00, the entry “100%” shall be substituted;

(5) in Chapter 12, for the entry in column (4) occurring against tariff items 1209 10 00, 1209 21 00, 1209 22 00, 1209 23 00, 1209 24 00, 1209 25 00, 1209 29 10, 1209 29 90 and 1209 30 00, the entry “15%” shall be substituted;

(6) in Chapter 15, for the entry in column (4) occurring against all the tariff items of heading 1505, the entry “15%” shall be substituted;

(7) in Chapter 20, for the entry in column (4) occurring against tariff items 2008 19 21, 2008 19 22, 2008 19 29, 2008 19 91 and 2008 19 92, the entry “30%” shall be substituted;

(8) in Chapter 21, for the entry in column (4) occurring against tariff items 2106 90 11, 2106 90 19, 2106 90 20, 2106 90 30, 2106 90 40, 2106 90 60, 2106 90 70, 2106 90 80, 2106 90 91, 2106 90 92 and 2106 90 99, the entry “50%” shall be substituted;

(9) in Chapter 23, for the entry in column (4) occurring against tariff item 2309 90 31, the entry “5%” shall be substituted;

(10) in Chapter 25,––158 159 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 159 THE FIFTH SCHEDULE

(i) for the entry in column (4) occurring against all the tariff [See section 136(c)(ii)] items of heading 2504, the entry “2.5%” shall be substituted;

(ii) for the entry in column (4) occurring against all the tariff In the First Schedule to the Customs Tariff Act,–– items of heading 2505, the entry “Free” shall be substituted;

(1) in Chapter 2, for the entry in column (4) occurring against tariff (iii) for the entry in column (4) occurring against all the tariff items of heading 2506, the entry “2.5%” shall be substituted; items 0207 25 00 and 0207 27 00, the entry “5%” shall be substituted;

(iv) for the entry in column (4) occurring against tariff item

(2) in Chapter 3, for the entry in column (4) occurring against tariff 2530 90 91, the entry “Free” shall be substituted; item 0306 36 60, the entry “Free” shall be substituted;

(3) in Chapter 5, for the entry in column (4) occurring against tariff

(11) in Chapter 27,–– item 0511 91 40, the entry “Free” shall be substituted;

(4) in Chapter 8,––

(i) for the entry in column (4) occurring against all the tariff

(i) for the entry in column (4) occurring against tariff item items of heading 2701, the entry “2.5%” shall be substituted;

0802 11 00, the entry “Rs. 35 per kg.” shall be substituted;

(ii) for the entry in column (4) occurring against all the tariff

(ii) for the entry in column (4) occurring against tariff item items of heading 2702, the entry “2.5%” shall be substituted;

0802 12 00, the entry “Rs. 100 per kg.” shall be substituted;

(iii) for the entry in column (4) occurring against all the tariff items of heading 2703, the entry “2.5%” shall be substituted;

(iii) for the entry in column (4) occurring against tariff item 0802 31 00, the entry “100%” shall be substituted; (iv) for the entry in column (4) occurring against tariff item 2709 00 10, the entry “Re 1 per tonne” shall be substituted;

(6) in Chapter 15, for the entry in column (4) occurring against all (i) for the entry in column (4) occurring against tariff item the tariff items of heading 1505, the entry “15%” shall be substituted; 2804 50 20, the entry “Free” shall be substituted;

(ii) for the entry in column (4) occurring against tariff item

(7) in Chapter 20, for the entry in column (4) occurring against 2804 61 00, the entry “Free” shall be substituted; tariff items 2008 19 21, 2008 19 22, 2008 19 29, 2008 19 91 and 2008 19 92, the entry “30%” shall be substituted; (iii) for the entry in column (4) occurring against tariff item 2804 69 00, the entry “Free” shall be substituted;

(8) in Chapter 21, for the entry in column (4) occurring against

(iv) for the entry in column (4) occurring against tariff item tariff items 2106 90 11, 2106 90 19, 2106 90 20, 2106 90 30, 2106 90 2804 90 00, the entry “Free” shall be substituted;

40, 2106 90 60, 2106 90 70, 2106 90 80, 2106 90 91, 2106 90 92 and

(v) for the entry in column (4) occurring against tariff item 2106 90 99, the entry “50%” shall be substituted;

2805 30 00, the entry “Free” shall be substituted;

(9) in Chapter 23, for the entry in column (4) occurring against

(vi) for the entry in column (4) occurring against tariff item tariff item 2309 90 31, the entry “5%” shall be substituted;

2809 20 10, the entry “5%” shall be substituted;

(10) in Chapter 25,––

(vii) for the entry in column (4) occurring against tariff item 2811 22 00, the entry “2.5%” shall be substituted;160 160 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—

(viii) for the entry in column (4) occurring against tariff item 2816 40 00, the entry “Free” shall be substituted;

(ix) for the entry in column (4) occurring against all the tariff items of heading 2822, the entry “Free” shall be substituted;

(x) for the entry in column (4) occurring against tariff item 2825 20 00, the entry “Free” shall be substituted;

(xi) for the entry in column (4) occurring against all the tariff items of sub-heading 2825 30, the entry “Free” shall be substituted;

(xii) for the entry in column (4) occurring against tariff item 2825 60 10, the entry “Free” shall be substituted;

(xiii) for the entry in column (4) occurring against all the tariff items of sub-heading 2825 70, the entry “Free” shall be substituted;

(xiv) for the entry in column (4) occurring against tariff item 2825 80 00, the entry “Free” shall be substituted;

(xv) for the entry in column (4) occurring against tariff item 2825 90 20, the entry “Free” shall be substituted;

(xvi) for the entry in column (4) occurring against tariff item 2827 35 00, the entry “Free” shall be substituted;

(xvii) for the entry in column (4) occurring against tariff item 2827 39 30, the entry “Free” shall be substituted;

(xviii) for the entry in column (4) occurring against tariff item 2833 24 00, the entry “Free” shall be substituted;

(xix) for the entry in column (4) occurring against tariff item 2834 21 00, the entry “Free” shall be substituted;

(xx) for the entry in column (4) occurring against tariff item 2836 91 00, the entry “Free” shall be substituted;

(xxi) for the entry in column (4) occurring against tariff item 2836 92 00, the entry “Free” shall be substituted;

(13) in Chapter 29,––

(i) for the entry in column (4) occurring against tariff item 2910 20 00, the entry “2.5%”, shall be substituted;

(ii) for the entry in column (4) occurring against tariff item 2918 15 30, the entry “Free” shall be substituted;

(14) in Chapter 31, for the entry in column (4) occurring against tariff item 3102 30 00, the entry “5%” shall be substituted;

(15) in Chapter 38,––160 161 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 161

(viii) for the entry in column (4) occurring against tariff item (i) for the entry in column (4) occurring against all the tariff 2816 40 00, the entry “Free” shall be substituted; items of heading 3801, the entry “2.5%” shall be substituted;

(ix) for the entry in column (4) occurring against all the tariff (ii) for the entry in column (4) occurring against tariff item items of heading 2822, the entry “Free” shall be substituted; 3808 93 30, the entry “5%” shall be substituted;

(x) for the entry in column (4) occurring against tariff item

(16) in Chapter 39, for the entry in column (4) occurring against 2825 20 00, the entry “Free” shall be substituted; all the tariff items of heading 3904, the entry “7.5%” shall be

(xi) for the entry in column (4) occurring against all the tariff substituted; items of sub-heading 2825 30, the entry “Free” shall be substituted;

(17) in Chapter 48, for the entry in column (4) occurring against

(xii) for the entry in column (4) occurring against tariff item tariff item 4823 90 90, the entry “10%” shall be substituted;

2825 60 10, the entry “Free” shall be substituted;

(18) in Chapter 49, for the entry in column (4) occurring against

(xiii) for the entry in column (4) occurring against all the tariff item 4906 00 00, the entry “Free” shall be substituted; tariff items of sub-heading 2825 70, the entry “Free” shall be substituted;

(19) in Chapter 52, for the entry in column (4) occurring against

(xiv) for the entry in column (4) occurring against tariff item tariff item 5201 00 25, the entry “Free” shall be substituted;

2825 80 00, the entry “Free” shall be substituted;

(20) in Chapter 72, for the entry in column (4) occurring against

(xv) for the entry in column (4) occurring against tariff item tariff item 7202 60 00, the entry “Free” shall be substituted;

2825 90 20, the entry “Free” shall be substituted;

(21) in Chapter 74, for the entry in column (4) occurring against

(xvi) for the entry in column (4) occurring against tariff item tariff item 7402 00 10, the entry “Free” shall be substituted;

2827 35 00, the entry “Free” shall be substituted;

(xvii) for the entry in column (4) occurring against tariff item (22) in Chapter 78, for the entry in column (4) occurring against 2827 39 30, the entry “Free” shall be substituted; all the tariff items of heading 7802, the entry “Free” shall be substituted;

(xviii) for the entry in column (4) occurring against tariff item 2833 24 00, the entry “Free” shall be substituted;

(23) in Chapter 79, for the entry in column (4) occurring against

(xix) for the entry in column (4) occurring against tariff item all the tariff items of heading 7902, the entry “Free” shall be 2834 21 00, the entry “Free” shall be substituted; substituted;

(xx) for the entry in column (4) occurring against tariff item

(24) in Chapter 81, for the entry in column (4) occurring against 2836 91 00, the entry “Free” shall be substituted; tariff item 8105 20 30, the entry “Free” shall be substituted;

(xxi) for the entry in column (4) occurring against tariff item

(25) in Chapter 84, for the entry in column (4) occurring against 2836 92 00, the entry “Free” shall be substituted; tariff items 8419 89 12, 8419 89 13, 8419 89 14, 8419 89 15, 8419 89

(13) in Chapter 29,–– 16, 8419 89 17 and 8419 89 19, the entry “7.5%” shall be substituted.

(i) for the entry in column (4) occurring against tariff item 2910 20 00, the entry “2.5%”, shall be substituted;

(ii) for the entry in column (4) occurring against tariff item 2918 15 30, the entry “Free” shall be substituted;

(14) in Chapter 31, for the entry in column (4) occurring against tariff item 3102 30 00, the entry “5%” shall be substituted;

(15) in Chapter 38,––162 162 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— THE SIXTH SCHEDULE (See section 142) In the Seventh Schedule to the Finance Act, 2001,––

(i) for the entry in column (4) occurring against tariff item 2403 99 10, the entry “60%” shall be substituted;

(ii) for the entry in column (4) occurring against tariff item 2403 99 30, the entry “60%” shall be substituted;

(iii) for the entry in column (4) occurring against tariff item 2403 99 90, the entry “60%” shall be substituted.162 163 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 163 STATEMENT OF OBJECTS AND REASONS THE SIXTH SCHEDULE The object of the Bill is to give effect to the financial proposals of the Central Government (See section 142) for the financial year 2026-2027. The notes on clauses explain the various provisions contained in the Bill.

In the Seventh Schedule to the Finance Act, 2001,––

(i) for the entry in column (4) occurring against tariff item NIRMALA SITHARAMAN.

2403 99 10, the entry “60%” shall be substituted;

NEW DELHI;

(ii) for the entry in column (4) occurring against tariff item The 31st January, 2026.

2403 99 30, the entry “60%” shall be substituted;

(iii) for the entry in column (4) occurring against tariff item 2403 99 90, the entry “60%” shall be substituted. _________________ PRESIDENT’S RECOMMENDATION UNDER ARTICLES 117 AND 274 OF THE CONSTITUTION OF INDIA [Copy of letter No. 2(13)-B(D)2026, dated the 31st January, 2026 from Smt. Nirmala Sitharaman, Minister of Finance, to the Secretary-General, Lok Sabha].

The President, having been informed of the subject matter of the proposed Bill, recommends under clauses (1) and (3) of article 117, read with clause (1) of article 274, of the Constitution of India, the introduction of the Finance Bill, 2026 to the Lok Sabha and also recommends to the Lok Sabha the consideration of the Bill.

2. The Bill will be introduced in the Lok Sabha immediately after the presentation of the Budget on the 1st February, 2026.164 164 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— Notes on Clauses Clause 2 read with the First Schedule to the Bill seeks to specify the rates at which income-tax is to be levied on income chargeable to tax for the assessment year 2026-2027 under the Income-tax Act, 1961.

Clause 3 read with the First Schedule to the Bill seeks to specify the rates at which income-tax is to be levied on income chargeable to tax for the tax year 2026-2027 under the Income-tax Act, 2025. Further, it lays down the rates at which tax is to be deducted at source during the financial year under the Income-tax Act, 2025; and the rates at which “advance tax” is to be paid, tax is to be deducted at source from, or paid on, income chargeable under the head “Salaries” or deducted under section 393(1) [Table: Sl. No. 8(iii)] of the Income- tax Act, 2025 and tax is to be calculated and charged in special cases for the financial year 2026-2027.

A.–– Income-tax under the Income-tax Act, 1961 Clause 4 of the Bill seeks to amend section 92CA of the Income-tax Act, 1961 relating to reference to Transfer Pricing Officer.

The said section provides that where an assessee, has entered into an international transaction or specified domestic transaction in any previous year, the Assessing Officer may refer to the Transfer Pricing Officer for the computation of the arm's length price under

section 92C in relation to the said international transaction or specified domestic transaction.

Sub-section (3A) of the said Act provides that the Transfer Pricing Officer is required to pass an order before sixty days prior to the date on which period of limitation specified in

section 153, or as the case may be, in section 153B for making the order of assessment or reassessment or recomputation or fresh assessment, as the case may be, expires.

In this regard, it is proposed to insert sub-section (3AA) so as to provide that for the purpose of making order under sub-section (3), the calculation of sixty days shall be made and shall be deemed to have been made in the following manner, namely:––

(a) where the period of limitation expires on 31st of March of any year (not being a leap year), the order under sub-section (3) may be made up to the 30th of January of that year;

(b) where the period of limitation expires on 31st of March of any year (being a leap year), the order under sub-section (3) may be made up to the 31st of January of that year;

(c) where the period of limitation expires on 31st of December of any year, the order under sub-section (3) may be made up to the 1st of November of that year.164 165 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 165 Notes on Clauses This amendment will take effect retrospectively from 1st June, 2007.

Clause 2 read with the First Schedule to the Bill seeks to specify the rates at which Clause 5 of the Bill seeks to amend section 139 of the Income-tax Act, 1961 relating to income-tax is to be levied on income chargeable to tax for the assessment year 2026-2027 return of income.

under the Income-tax Act, 1961.

Explanation 2 to sub-section (1) of said section provides definition for “due date” to Clause 3 read with the First Schedule to the Bill seeks to specify the rates at which mean the last date for filing the return by different classes of assessee or person for the income-tax is to be levied on income chargeable to tax for the tax year 2026-2027 under the assessment year, with different conditions applied therein.

Income-tax Act, 2025. Further, it lays down the rates at which tax is to be deducted at source during the financial year under the Income-tax Act, 2025; and the rates at which “advance It is proposed to substitute the said Explanation so as to provide that for the purposes tax” is to be paid, tax is to be deducted at source from, or paid on, income chargeable under of this sub-section “due date” means in respect of the persons mentioned in column B of the the head “Salaries” or deducted under section 393(1) [Table: Sl. No. 8(iii)] of the Income- Table below, subject to the conditions as mentioned in column C of the said Table, shall be tax Act, 2025 and tax is to be calculated and charged in special cases for the financial year the due date of assessment year as mentioned in column D thereof:

2026-2027. TABLE A.–– Income-tax under the Income-tax Act, 1961 Sl. Person Conditions Due date No.

Clause 4 of the Bill seeks to amend section 92CA of the Income-tax Act, 1961 relating A B C D to reference to Transfer Pricing Officer.

1. Assessee, including the partners Where the 30th of the firm or the spouse of such provisions of November.

The said section provides that where an assessee, has entered into an international partner (if section 5A applies to section 92E transaction or specified domestic transaction in any previous year, the Assessing Officer may such spouse). apply.

refer to the Transfer Pricing Officer for the computation of the arm's length price under

section 92C in relation to the said international transaction or specified domestic transaction.

2. (i) Company; Where the 31st provisions of October.

Sub-section (3A) of the said Act provides that the Transfer Pricing Officer is required to

(ii) Assessee (other than a section 92E do pass an order before sixty days prior to the date on which period of limitation specified in company) whose accounts are not apply.

section 153, or as the case may be, in section 153B for making the order of assessment or required to be audited under this reassessment or recomputation or fresh assessment, as the case may be, expires.

Act or under any other law for the time being in force;

In this regard, it is proposed to insert sub-section (3AA) so as to provide that for the purpose of making order under sub-section (3), the calculation of sixty days shall be made

(iii) partner of a firm whose and shall be deemed to have been made in the following manner, namely:–– accounts are required to be audited under this Act or under

(a) where the period of limitation expires on 31st of March of any year (not being a any other law in force or the leap year), the order under sub-section (3) may be made up to the 30th of January of that spouse of such partner (if year;

section 5A applies to such spouse).

(b) where the period of limitation expires on 31st of March of any year (being a leap year), the order under sub-section (3) may be made up to the 31st of January of that year;

3. (i) Assessee having income Where the 31st from profits and gains of provisions of August.

(c) where the period of limitation expires on 31st of December of any year, the order business or profession whose section 92E do under sub-section (3) may be made up to the 1st of November of that year.

accounts are not required to be not apply. audited under this Act or under166 166 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— any other law for the time being in force;

(ii) partner of a firm whose accounts are not required to be audited under this Act or under any other law in force or the spouse of such partner (if

section 5A applies to such spouse).

4. Any other assessee. 31st July.

Sub-section (5) of the said section of the said Act deal with the revised return of income. It allows a person who has already furnished a return under sub-sections (1) and

(4) of the said section to file a revised return, if any omission or wrong statement is discovered in the original or belated return. Such revised return must be furnished at any time before three months prior to the end of relevant assessment year or before completion of assessment, whichever is earlier.

It is further proposed to substitute said sub-section to provide that if any person, having furnished a return under sub-section (1) or sub-section (4), discovers any omission or any wrong statement therein, he may, subject to the provisions of section 234-I, furnish a revised return at any time before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.

Sub-section (8A) of the said section provides for updated return of Income. It allows a taxpayer, whether or not a return was furnished earlier, to file an updated return within forty-eight months from the end of the financial year succeeding the relevant tax year. This provision is meant to promote voluntary compliance on the part of taxpayer to offer the income for taxation.

It is proposed to provide for filing updated return for reducing the loss in specified circumstances. Also, an updated return may be furnished by a person for the relevant assessment year in pursuance of a notice under section 148 within such period as specified in the said notice and in such a case, the assessee shall be precluded from filing return in pursuance of the said notice in any other manner.

These amendments will take effect retrospectively from 1st March, 2026.

Clause 6 of the Bill seeks to amend section 140B of the Income-tax Act, 1961 relating to tax on updated return.

Sub-section (3) of the said section provides that additional income-tax amounting to twenty-five per cent., fifty per cent., sixty per cent., seventy per cent. of the aggregate of tax and interest payable, shall be paid along with original tax and interest payable, for filing the166 167 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 167 any other law for the time being updated return in first, second, third and fourth year, respectively from the end of the relevant in force; assessment year.

(ii) partner of a firm whose It is proposed to insert sub-section (3A) in the said section so as to provide that where accounts are not required to be an updated return is filed in pursuance of a notice issued under section 148 within the period audited under this Act or under specified in the said notice, the additional income-tax payable shall be increased by a further any other law in force or the sum of ten per cent. of the aggregate of tax and interest payable on account of furnishing the spouse of such partner (if updated return.

section 5A applies to such spouse). This amendment will take effect retrospectively from 1st March, 2026.

4. Any other assessee. 31st July. Clause 7 of the Bill seeks to amend section 144C of the Income-tax Act, 1961 relating to reference to Dispute Resolution Panel.

Sub-section (5) of the said section of the said Act deal with the revised return of income. It allows a person who has already furnished a return under sub-sections (1) and Section 144C of the said Act, inter alia, provides for the procedure and scheme for

(4) of the said section to file a revised return, if any omission or wrong statement is making a reference to the Dispute Resolution Panel in respect of certain eligible assessee. discovered in the original or belated return. Such revised return must be furnished at any Section 153 of the said Act provides for the time limits for completion of assessment, time before three months prior to the end of relevant assessment year or before completion reassessment, and recomputation proceedings and sets the time limit for concluding such of assessment, whichever is earlier. proceedings.

It is further proposed to substitute said sub-section to provide that if any person, having The Dispute Resolution Panel mechanism, as provided under section 144C of the said furnished a return under sub-section (1) or sub-section (4), discovers any omission or any Act provides for a specific procedure as below:–– wrong statement therein, he may, subject to the provisions of section 234-I, furnish a revised return at any time before the end of the relevant assessment year or before the completion of (i) filing of objections before the Dispute Resolution Panel — within thirty days the assessment, whichever is earlier. from the date of receipt of the draft assessment order;

Sub-section (8A) of the said section provides for updated return of Income. It allows (ii) issuance of directions by the Dispute Resolution Panel — within nine months a taxpayer, whether or not a return was furnished earlier, to file an updated return within from the end of the month in which the draft assessment order is forwarded to the eligible forty-eight months from the end of the financial year succeeding the relevant tax year. This assessee; and provision is meant to promote voluntary compliance on the part of taxpayer to offer the income for taxation. (iii) passing of the final assessment order — notwithstanding anything contained in sections 153 or 153B of the said Act, within one month from the end of the month in It is proposed to provide for filing updated return for reducing the loss in specified which the directions of the Dispute Resolution Panel are received, as mandated under circumstances. Also, an updated return may be furnished by a person for the relevant sub-section (13).

assessment year in pursuance of a notice under section 148 within such period as specified in the said notice and in such a case, the assessee shall be precluded from filing return in In cases where the assessee accepts the draft assessment order and does not file objections pursuance of the said notice in any other manner. before the Dispute Resolution Panel, the Assessing Officer is required, notwithstanding anything contained in sections 153 or 153B of the said Act, as the case may be, to pass the These amendments will take effect retrospectively from 1st March, 2026. final assessment order within one month from the end of the month in which the period specified for filing objections expires, in terms of sub-section (4) of section 144C of the said Clause 6 of the Bill seeks to amend section 140B of the Income-tax Act, 1961 relating to Act.

tax on updated return.

It is proposed to amend section 144C of the said Act so as to clarify the time-limits Sub-section (3) of the said section provides that additional income-tax amounting to available to the Assessing Officer to pass the final assessment order upon receipt of direction twenty-five per cent., fifty per cent., sixty per cent., seventy per cent. of the aggregate of tax issued by Dispute Resolution Panel. Therefore it is hereby clarified for the purposes of sub- and interest payable, shall be paid along with original tax and interest payable, for filing the section (4) that where a draft of the proposed order of assessment under sub-section (1) is168 168 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— forwarded within the time period allowed under section 153/153B, further time period available to the Assessing Officer to complete the assessment under sub-section (3) shall be governed and shall always be deemed to have been governed by the provisions of sub-section

(4).

Further, it is also clarified for the purposes of sub-section (13) that where a draft of the proposed order of assessment under sub-section (1) is forwarded within the time period allowed under section 153/153B, time period available for the Assessing Officer under sub-

section (13) to pass the assessment order upon receipt of the direction issued under sub-

section (5), shall be governed and shall always be deemed to have been governed by the provisions of sub-sections (12) and (13).

It is proposed to insert sub-section (4A), (4B), (13A) and (13B) in section 144C of the said Act so as to clarify the time period available to the Assessing Officer to complete the assessment under sub-section (3) and sub-section (13), as the case may be, of section 144C of the said Act.

These amendments will take effect retrospectively from 1st April, 2009 for sub-section

(4A) and (13A) of section 144C of the said Act.

These amendments will take effect retrospectively from 1st October, 2009 for sub-section

(4B) and (13B) of section 144C of the said Act.

Clause 8 of the Bill seeks to insert a new section 147A of the Income-tax Act, 1961 relating to Assessing Officer for the purposes of section 148 and 148A.

Vide the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, sections 144B and 151A were inserted in the said Act. Section 144B provides for statutory procedure for faceless assessments with effect from the 1st day of April, 2021.

Section 147 of the Income-tax Act, 1961 empowers the Assessing Officer to assess, reassess, or recompute income if any income chargeable to tax has escaped assessment for a particular assessment year. Section 148 of the said Act provides that the Assessing Officer is mandated to issue a notice to the assessee so as to furnish a return of income where income chargeable to tax has escaped assessment.

The Finance Act, 2021 had inserted section 148A into the said Act with effect from 1st day of April, 2021 to introduce a mandatory pre-notice inquiry process and opportunity of hearing before issuance of a notice under section 148. The said section requires the Assessing Officer to conduct an inquiry, if required, with prior approval of the specified authority, provide the assessee with a show cause notice along with information suggesting escapement of income, and grant an opportunity of being heard. After considering the assessee’s reply, the Assessing Officer is required to pass a reasoned order under sub-section (3) of section 148A, as the case may be, determining whether it is a fit case for issuance of notice under

section 148. The said order under sub-section (3) of section 148A is issued with the prior approval of the specified authority.169 168 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 169 forwarded within the time period allowed under section 153/153B, further time period It is proposed to insert section 147A after the said section 147 of the Income-tax Act, available to the Assessing Officer to complete the assessment under sub-section (3) shall be 1961 so as to remove doubts and to clarify that the Assessing Officer for the purposes of governed and shall always be deemed to have been governed by the provisions of sub-section sections 148 and 148A shall mean and shall always be deemed to have meant to be an

(4). Assessing Officer other than the National Faceless Assessment Centre or any assessment unit referred to in sub-section (3) of section 144B.

Further, it is also clarified for the purposes of sub-section (13) that where a draft of the proposed order of assessment under sub-section (1) is forwarded within the time period This amendment will take effect retrospectively from 1st April, 2021.

allowed under section 153/153B, time period available for the Assessing Officer under sub-

section (13) to pass the assessment order upon receipt of the direction issued under sub- Clause 9 of the Bill seeks to amend section 153 of the Income-tax Act, 1961 relating to

section (5), shall be governed and shall always be deemed to have been governed by the the time limit for completion of assessment, reassessment and recomputation. provisions of sub-sections (12) and (13).

Section 153 of the said Act provides for the time limits for completion of assessment, It is proposed to insert sub-section (4A), (4B), (13A) and (13B) in section 144C of reassessment, and recomputation proceedings and sets the time limit for concluding such the said Act so as to clarify the time period available to the Assessing Officer to complete proceedings.

the assessment under sub-section (3) and sub-section (13), as the case may be, of section 144C of the said Act. It is proposed to amend section 153 of the said Act by inserting sub-section (10) so as to clarify that in terms of provisions of sub-sections (1) to (4) of the said section, the draft of These amendments will take effect retrospectively from 1st April, 2009 for sub-section the proposed order of assessment referred to in sub-section (1) of section 144C shall be made,

(4A) and (13A) of section 144C of the said Act. and shall always be deemed to have been made, at any time up to the time limit of assessment, reassessment or recomputation referred in the said sub-sections.

These amendments will take effect retrospectively from 1st October, 2009 for sub-section

(4B) and (13B) of section 144C of the said Act. This amendment will take effect retrospectively from 1st April, 2009.

Clause 8 of the Bill seeks to insert a new section 147A of the Income-tax Act, 1961 relating to Assessing Officer for the purposes of section 148 and 148A. Clause 10 of the Bill seeks to amend section 153B of the Income-tax Act, 1961 relating to the time limit for completion of assessment, under section 153A .

Vide the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, sections 144B and 151A were inserted in the said Act. Section 144B provides for Section 153B of the said Act provides for the time limits for completion of assessment statutory procedure for faceless assessments with effect from the 1st day of April, 2021. and reassessment proceedings related to search initiated under section 132 and requisition made under section 132A and sets the time limit for concluding such proceedings.

Section 147 of the Income-tax Act, 1961 empowers the Assessing Officer to assess, reassess, or recompute income if any income chargeable to tax has escaped assessment for a It is proposed to amend section 153B of the said Act by inserting sub-section (1A) so as particular assessment year. Section 148 of the said Act provides that the Assessing Officer to clarify that in terms of provisions of this section, the draft of the proposed order of is mandated to issue a notice to the assessee so as to furnish a return of income where income assessment referred to in sub-section (1) of section 144C shall be made, and shall always be chargeable to tax has escaped assessment. deemed to have been made, at any time up to the time limit of assessment, reassessment or recomputation referred in this section.

The Finance Act, 2021 had inserted section 148A into the said Act with effect from 1st day of April, 2021 to introduce a mandatory pre-notice inquiry process and opportunity of This amendment will take effect retrospectively from 1st October, 2009.

hearing before issuance of a notice under section 148. The said section requires the Assessing Officer to conduct an inquiry, if required, with prior approval of the specified authority, Clause 11 of the Bill seeks to amend section 220 of the Income-tax Act, 1961 relating to provide the assessee with a show cause notice along with information suggesting escapement when tax payable and when assessee deemed in default.

of income, and grant an opportunity of being heard. After considering the assessee’s reply, the Assessing Officer is required to pass a reasoned order under sub-section (3) of section The said section provides the payment and recovery of tax demand, stating that any 148A, as the case may be, determining whether it is a fit case for issuance of notice under amount specified in a notice of demand under section 156 must be paid within thirty days of

section 148. The said order under sub-section (3) of section 148A is issued with the prior service of the notice. If the assessee fails to pay within this period, they are deemed to be in approval of the specified authority.170 170 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— default and become liable to interest under sub-section (2) of section 220, along with possible recovery proceedings such as attachment of property. The Assessing Officer may, however, allow payment by instalments or extend the time for payment, subject to conditions, to provide relief in genuine cases.

In section 274, it is proposed to provide that, penalty for under-reporting of income under leviable under section 270A shall be imposed in the assessment order.

It is proposed to make consequential amendment in sub-section (2) of section 220 for charging of interest under the said sub-section in respect of any demand raised on account of penalty levied under section 270A only after passing of the order by the Commissioner of Income-tax (Appeals) or the Income-tax Appellate Tribunal (for appeal against the order passed in pursuance of directions issued by the Dispute Resolution Panel order), as the case may be.

This amendment will take effect retrospectively from the 1st March, 2026.

Clause 12 of the Bill seeks to insert section 234-I after section 234H of the Income-tax Act, 1961, relating to fee for default in furnishing revised return of income.

It is proposed to levy of fee amounting to five thousand rupees for revising the return after nine months from the end of relevant previous year where the total income is more than five lakh rupees, and a fee of one thousand rupees for revising the return after nine months from the end of relevant previous year where the total income is less than five lakh rupees.

This amendment will take effect retrospectively from 1st March, 2026.

Clause 13 of the Bill seeks to amend section 245MA of the Income-tax Act, 1961 relating to Dispute Resolution Committee.

The said section provides for the constitution of a Dispute Resolution Committee to resolve disputes of specified small and medium taxpayers in a cost-effective and expeditious manner. The said Committee is empowered to reduce or waive penalties and grant immunity from prosecution, subject to conditions, with the objective of reducing litigation. The section lays down eligibility, procedure, and binding nature of the Dispute Resolution Committee

order, promoting voluntary compliance and speedy dispute resolution.

It is proposed to amend the said section so as to provide that penalty for under-reporting of income leviable under section 270A imposed in the assessment order may be waived by the Dispute Resolution Committee.

This amendment will take effect retrospectively from 1st March, 2026.

Clause 14 of the Bill seeks to amend section 270A of the Income-tax Act, 1961 relating to penalty for under reporting and misreporting of income.170 171 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 171 default and become liable to interest under sub-section (2) of section 220, along with possible It is proposed to insert a new sub-section (11A) in the said section so as to provide that recovery proceedings such as attachment of property. The Assessing Officer may, however, where additional income-tax is paid in accordance with sub-section (3A) of section 140B, allow payment by instalments or extend the time for payment, subject to conditions, to the income on which such additional income-tax is paid shall not form the basis of imposition provide relief in genuine cases. of penalty.

In section 274, it is proposed to provide that, penalty for under-reporting of income under This amendment will take effect retrospectively from 1st March, 2026. leviable under section 270A shall be imposed in the assessment order.

Clause 15 of the Bill seeks to amend section 270AA of the Income-tax Act, 1961 It is proposed to make consequential amendment in sub-section (2) of section 220 for relating to immunity from imposition of penalty, etc.

charging of interest under the said sub-section in respect of any demand raised on account of penalty levied under section 270A only after passing of the order by the Commissioner of The said section, inter alia, provides the procedure for granting immunity by the Income-tax (Appeals) or the Income-tax Appellate Tribunal (for appeal against the order Assessing Officer from imposition of penalty or initiation of prosecution, if assessee fulfils passed in pursuance of directions issued by the Dispute Resolution Panel order), as the case certain conditions, specified therein.

may be.

Under the said section immunity is granted only in the cases of under-reporting of This amendment will take effect retrospectively from the 1st March, 2026. income and not in the case of under-reporting of income in consequence of misreporting.

Clause 12 of the Bill seeks to insert section 234-I after section 234H of the Income-tax It is proposed to amend the said section so as to extend such immunity to cases where Act, 1961, relating to fee for default in furnishing revised return of income. penalty is initiated for under-reporting of income in consequence of misreporting, on payment of the tax and interest payable as per the order of assessment under sub-section (3) It is proposed to levy of fee amounting to five thousand rupees for revising the return of section 143 or reassessment under section 147, along with additional income-tax after nine months from the end of relevant previous year where the total income is more than amounting to one hundred per cent. of the aggregate of such tax payable.

five lakh rupees, and a fee of one thousand rupees for revising the return after nine months from the end of relevant previous year where the total income is less than five lakh rupees. This amendment will take effect retrospectively from 1st day of March, 2026.

This amendment will take effect retrospectively from 1st March, 2026. Clause 16 of the Bill seeks to amend section 274 of the Income-tax Act, 1961 relating to procedure.

Clause 13 of the Bill seeks to amend section 245MA of the Income-tax Act, 1961 relating to Dispute Resolution Committee. The said section prescribes the procedure for imposing penalties and mandates that no penalty shall be levied unless the assessee is given a reasonable opportunity of being The said section provides for the constitution of a Dispute Resolution Committee to heard. It requires the Assessing Officer to issue a show-cause notice for which the penalty is resolve disputes of specified small and medium taxpayers in a cost-effective and expeditious proposed, and in certain cases, prior approval of higher authorities is necessary before manner. The said Committee is empowered to reduce or waive penalties and grant immunity imposing the penalty. The section ensures adherence to the principles of natural justice and from prosecution, subject to conditions, with the objective of reducing litigation. The section aims to prevent arbitrary or invalid penalty proceedings.

lays down eligibility, procedure, and binding nature of the Dispute Resolution Committee

order, promoting voluntary compliance and speedy dispute resolution. It is proposed to amend the said section so as to provide that penalty for under- reporting of income leviable under section 270A shall be imposed in the assessment order It is proposed to amend the said section so as to provide that penalty for under-reporting made on or after the 1st April, 2027 for assessment year 2026-2027 or any earlier assessment of income leviable under section 270A imposed in the assessment order may be waived by year.

the Dispute Resolution Committee.

This amendment will take effect retrospectively from 1st March, 2026.

Clause 17 of the Bill seeks to amend section 275A of the Income-tax Act, 1961 Clause 14 of the Bill seeks to amend section 270A of the Income-tax Act, 1961 relating (hereinafter referred as the ‘Act’) relating to contravention of order made under sub-section to penalty for under reporting and misreporting of income. (3) of section 132.172 172 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— The said section provides that whoever contravenes any order referred to in the second proviso to sub-section (1) or sub-section (3) of section 132 shall be punishable with rigorous imprisonment which may extend to two years and shall also be liable to fine.

It is proposed to amend the said section so as to change the nature of punishment from “imprisonment which may extend to two years and shall also be liable to fine” to “simple imprisonment for term which may extend to two years and with fine”.

This amendment will take effect retrospectively from 1st March, 2026.

Clause 18 of the Bill seeks to amend section 275B of the Income-tax Act, 1961 relating to failure to comply with the provisions of clause (iib) of sub-section (1) of section 132.

The said section provides that if a person who is required to afford the authorised officer the necessary facility to inspect the books of account or other documents, as required under clause (iib) of sub-section (1) of section 132, fails to afford such facility to the authorised officer, he shall be punishable with rigorous imprisonment for a term which may extend to two years and shall also be liable to fine.

It is proposed to amend the said section so as to change the punishment from “rigorous imprisonment for a term which may extend to two years and shall also be liable to fine” to “simple imprisonment for a term which may extend to six months or with fine or with both”.

This amendment will take effect retrospectively from 1st March, 2026.

Clause 19 of the Bill seeks to amend section 276 of the Income-tax Act, 1961 relating to removal, concealment, transfer or delivery of property to thwart tax recovery.

The said section provides that whoever fraudulently removes, conceals, transfers or delivers to any person, any property or any interest therein, intending thereby to prevent that property or interest therein from being taken in execution of a certificate under the provisions of the Second Schedule shall be punishable with rigorous imprisonment for a term which may extend to two years and shall also be liable to fine.

This amendment will take effect retrospectively from 1st March, 2026.

Clause 20 of the Bill seeks to substitute sections 276B, 276BB, 276C, 276CC, 276CCC and 276D of the Income-tax Act, 1961 relating to failure to pay tax to the credit of Central Government under Chapter XII-D or XVII-B, failure to pay the tax collected at source, wilful attempt to evade tax, etc., failure to furnish returns of income, failure to furnish return of income in search cases and failure to produce accounts and documents, respectively with new sections.173 172 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 173 The said section provides that whoever contravenes any order referred to in the second The offences under section 276B are proposed to be fully decriminalized, as below:

proviso to sub-section (1) or sub-section (3) of section 132 shall be punishable with rigorous imprisonment which may extend to two years and shall also be liable to fine. (i) with simple imprisonment for a term which may extend to two years, or with fine, or with both, in a case where amount of such tax exceeds fifty lakh rupees;

It is proposed to amend the said section so as to change the nature of punishment from “imprisonment which may extend to two years and shall also be liable to fine” to “simple (ii) with simple imprisonment for a term which may extend to six months, or with fine, imprisonment for term which may extend to two years and with fine”. or with both, in a case where amount of such tax exceeds ten lakh rupees but does not exceed fifty lakh rupees;

This amendment will take effect retrospectively from 1st March, 2026.

(iii) with fine, in any other case.

Clause 18 of the Bill seeks to amend section 275B of the Income-tax Act, 1961 relating to failure to comply with the provisions of clause (iib) of sub-section (1) of section 132. Section 276BB provides that if a person fails to pay to the credit of the Central Government, the tax collected by him as required under the provisions of section 206C, he The said section provides that if a person who is required to afford the authorised officer shall be punishable with rigorous imprisonment for a term which shall not be less than three the necessary facility to inspect the books of account or other documents, as required under months but which may extend to seven years and with fine.

clause (iib) of sub-section (1) of section 132, fails to afford such facility to the authorised officer, he shall be punishable with rigorous imprisonment for a term which may extend to In this regard, it is proposed to amend section 276BB of the Act as below:

two years and shall also be liable to fine.

(i) with simple imprisonment for a term which may extend to two years, or with fine, It is proposed to amend the said section so as to change the punishment from “rigorous or with both, in a case where amount of such tax exceeds fifty lakh rupees;

imprisonment for a term which may extend to two years and shall also be liable to fine” to “simple imprisonment for a term which may extend to six months or with fine or with both”. (ii) with simple imprisonment for a term which may extend to six months or with fine, or with both, in a case where amount of such tax exceeds ten lakh rupees but does not exceed This amendment will take effect retrospectively from 1st March, 2026. fifty lakh rupees;

Clause 19 of the Bill seeks to amend section 276 of the Income-tax Act, 1961 relating (iii) with fine, in any other case. to removal, concealment, transfer or delivery of property to thwart tax recovery.

Section 276C(1) provides that if a person wilfully attempts in any manner whatsoever The said section provides that whoever fraudulently removes, conceals, transfers or to evade any tax, penalty or interest chargeable or imposable, or under reports his income, delivers to any person, any property or any interest therein, intending thereby to prevent that under this Act, he shall, without prejudice to any penalty that may be imposable on him under property or interest therein from being taken in execution of a certificate under the provisions any other provision of this Act, be punishable,— (i) in a case where the amount sought to be of the Second Schedule shall be punishable with rigorous imprisonment for a term which evaded or tax on under-reported income exceeds twenty-five hundred thousand rupees, with may extend to two years and shall also be liable to fine. rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine; (ii) in any other case, with rigorous imprisonment for a It is proposed to amend the said section so as to change the punishment from “rigorous term which shall not be less than three months but which may extend to two years and with imprisonment for a term which may extend to two years and shall also be liable to fine” to fine. Further, section 276C(2) states that if a person wilfully attempts in any manner “simple imprisonment for a term which may extend to two years and with fine”. whatsoever to evade the payment of any tax, penalty or interest under this Act, he shall, without prejudice to any penalty that may be imposable on him under any other provision of This amendment will take effect retrospectively from 1st March, 2026. this Act, be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to two years and shall, in the discretion of the court, also Clause 20 of the Bill seeks to substitute sections 276B, 276BB, 276C, 276CC, 276CCC be liable to fine.

and 276D of the Income-tax Act, 1961 relating to failure to pay tax to the credit of Central Government under Chapter XII-D or XVII-B, failure to pay the tax collected at source, wilful It is proposed to amend section 276C as below:

attempt to evade tax, etc., failure to furnish returns of income, failure to furnish return of income in search cases and failure to produce accounts and documents, respectively with new sections.174 174 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—

(a) with simple imprisonment for a term which may extend to two years, or with fine, or with both, in a case where the amount sought to be evaded or tax on under-reported income exceeds fifty lakh rupees;

(b) with simple imprisonment for a term which may extend to six months, or with fine, or with both, in a case where the amount sought to be evaded or tax on under-reported income exceeds ten lakh rupees but does not exceed fifty lakh rupees;

Further, punishment of offences under section 276C(2) is proposed to be changed

as below:

(a) with simple imprisonment for a term which may extend to two years, or with fine, or with both, in a case where the amount sought to be evaded exceeds fifty lakh rupees;

(b) with simple imprisonment for a term which may extend to six months, or with fine, or with both, in a case where the amount sought to be evaded exceeds ten lakh rupees but does not exceed fifty lakh rupees;

Section 276CC provides that if a person wilfully fails to furnish in due time the return of fringe benefits which he is required to furnish under sub-section (1) of section 115WD or by notice given under sub-section (2) of the said section or section 115WH or the return of income which he is required to furnish under sub-section (1) of section 139 or by notice given under clause (i) of sub-section (1) of section 142 or section 148 or section 153A, he shall be punishable,— (i) in a case where the amount of tax, which would have been evaded if the failure had not been discovered, exceeds twenty-five hundred thousand rupees, with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine; (ii) in any other case, with imprisonment for a term which shall not be less than three months but which may extend to two years and with fine It is proposed to amend section 276CC of the Act so as to change the punishment

as below:

(a) with simple imprisonment for a term which may extend to two years, or with fine, or with both, in a case where the amount of tax, which would have been evaded if the failure had not been discovered, exceeds fifty lakh rupees;

(b) with simple imprisonment for a term which may extend to six months, or with fine, or with both, in a case where the amount of tax, which would have been evaded if the failure had not been discovered, exceeds ten lakh rupees but does not exceed fifty lakh rupees;

(a) with simple imprisonment for a term which may extend to two years, or with fine, Section 276CCC provides that if a person wilfully fails to furnish in due time the or with both, in a case where the amount sought to be evaded or tax on under-reported income return of total income which he is required to furnish by notice given under clause (a) of sub- exceeds fifty lakh rupees; section (1) of section 158BC, he shall be punishable with imprisonment for a term which shall not be less than three months but which may extend to three years and with fine.

(b) with simple imprisonment for a term which may extend to six months, or with fine, or with both, in a case where the amount sought to be evaded or tax on under-reported income It is proposed to amend section 276CCC so as to change the punishment as below:

exceeds ten lakh rupees but does not exceed fifty lakh rupees;

(a) with simple imprisonment for a term which may extend to two years, or with fine,

Further, punishment of offences under section 276C(2) is proposed to be changed (b) with simple imprisonment which may extend to six months, or with fine, or with

as below: both, in a case where the amount of tax, exceeds ten lakh rupees but does not exceed fifty lakh rupees;

(a) with simple imprisonment for a term which may extend to two years, or with fine, or with both, in a case where the amount sought to be evaded exceeds fifty lakh rupees; (c) with fine, in any other case.

(b) with simple imprisonment for a term which may extend to six months, or with fine, Section 276D provides that if a person wilfully fails to produce, or cause to be or with both, in a case where the amount sought to be evaded exceeds ten lakh rupees but produced, on or before the date specified in any notice served on him under sub-section (1) does not exceed fifty lakh rupees; of section 142, such accounts and documents as are referred to in the notice or wilfully fails to comply with a direction issued to him under sub-section (2A) of that section, he shall be

(c) with fine, in any other case. punishable with rigorous imprisonment for a term which may extend to one year and with fine.

Section 276CC provides that if a person wilfully fails to furnish in due time the return of fringe benefits which he is required to furnish under sub-section (1) of section 115WD or It is proposed to amend section 276D of the Act so as to change the punishment as by notice given under sub-section (2) of the said section or section 115WH or the return of below:

income which he is required to furnish under sub-section (1) of section 139 or by notice given under clause (i) of sub-section (1) of section 142 or section 148 or section 153A, he (a) in the case where a person wilfully fails to produce, or cause to be produced, on or shall be punishable,— (i) in a case where the amount of tax, which would have been evaded before the date specified in any notice served on him under sub-section (1) of section 142, if the failure had not been discovered, exceeds twenty-five hundred thousand rupees, with such accounts and documents as are referred to in the notice. This offence is proposed to be rigorous imprisonment for a term which shall not be less than six months but which may decriminalised.

extend to seven years and with fine; (ii) in any other case, with imprisonment for a term which shall not be less than three months but which may extend to two years and with fine (b) in the case where a person wilfully fails to comply with a direction issued to him under sub-section (2A) of section 142, he shall be punishable with rigorous imprisonment It is proposed to amend section 276CC of the Act so as to change the punishment for a term which may extend to one year and with fine. This punishment is proposed to be

as below: changed to “simple imprisonment for a term which may extend to six months or with fine”.

(a) with simple imprisonment for a term which may extend to two years, or with fine, These amendments will take effect retrospectively from 1st March, 2026. or with both, in a case where the amount of tax, which would have been evaded if the failure had not been discovered, exceeds fifty lakh rupees; Clause 21 of the Bill seeks to amend section 277 of the Income-tax Act, 1961 relating to false statement in verification, etc.

(b) with simple imprisonment for a term which may extend to six months, or with fine, or with both, in a case where the amount of tax, which would have been evaded if the failure The said section provides that if a person makes a statement in any verification under this had not been discovered, exceeds ten lakh rupees but does not exceed fifty lakh rupees; Act or under any rule made thereunder, or delivers an account or statement which is false, and which he either knows or believes to be false, or does not believe to be true, he shall be

(c) with fine, in any other case. punishable,— (i) in a case where the amount of tax, which would have been evaded if the statement or account had been accepted as true, exceeds twenty-five hundred thousand176 176 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— rupees, with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine; (ii) in any other case, with rigorous imprisonment for a term which shall not be less than three months but which may extend to two years and with fine.

It is proposed to amend the said section so as to change the as below:

(a) with simple imprisonment for a term which may extend to two years, or with fine, or with both, in a case where the amount of tax, which would have been evaded if the statement or account had been accepted as true, exceeds fifty lakh rupees;

(b) with simple imprisonment for a term which may extend to six months, or with fine, or with both, in a case where the amount of tax, which would have been evaded if the statement or account had been accepted as true, exceeds ten lakh rupees but does not exceed fifty lakh rupees;

This amendment will take effect retrospectively from 1st March, 2026.

Clause 22 of the Bill seeks to amend section 277A of the Income-tax Act, 1961 relating to falsification of books of account or document, etc.

The said section, inter alia, provides that if any person wilfully and with intent to enable any other person to evade any tax or interest or penalty chargeable and imposable under this Act, makes or causes to be made any entry or statement which is false and which the first person either knows to be false or does not believe to be true, in any books of account or other document relevant to or useful in any proceedings against the first person or the second person, under this Act, the first person shall be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to two years and with fine.

It is proposed to amend the said section of the Act so as to change the punishment from “rigorous imprisonment for a term which shall not be less than three months but which may extend to two years and with fine” to “simple imprisonment for a term which may extend to two years and shall also be liable to fine”.

This amendment will take effect retrospectively from 1st March, 2026.

Clause 23 of the Bill seeks to amend section 278 of the Income-tax Act, 1961 relating to abetment of false return, etc.

The said section, inter alia, provides that if a person abets or induces in any manner another person to make and deliver an account or a statement or declaration relating to any income or any fringe benefits chargeable to tax which is false and which he either knows to be false or does not believe to be true or to commit an offence under sub-section (1) of section176 177 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 177 rupees, with rigorous imprisonment for a term which shall not be less than six months but 276C, he shall be punishable,— (i) in a case where the amount of tax, penalty or interest which may extend to seven years and with fine; (ii) in any other case, with rigorous which would have been evaded, if the declaration, account or statement had been accepted imprisonment for a term which shall not be less than three months but which may extend to as true, or which is wilfully attempted to be evaded, exceeds twenty-five hundred thousand two years and with fine. rupees, with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine; (ii) in any other case, with rigorous

It is proposed to amend the said section so as to change the as below: imprisonment for a term which shall not be less than three months but which may extend to two years and with fine.

(a) with simple imprisonment for a term which may extend to two years, or with fine, or with both, in a case where the amount of tax, which would have been evaded if the statement It is proposed to amend the said section so as to change the punishment as below:

or account had been accepted as true, exceeds fifty lakh rupees;

(i) with simple imprisonment for a term which may extend to two years, or with

(b) with simple imprisonment for a term which may extend to six months, or with fine, fine, or with both, in a case where the amount of tax, penalty or interest which would or with both, in a case where the amount of tax, which would have been evaded if the have been evaded, if the declaration, account or statement had been accepted as true, or statement or account had been accepted as true, exceeds ten lakh rupees but does not exceed which is wilfully attempted to be evaded, exceeds fifty lakh rupees;

fifty lakh rupees;

(ii) with simple imprisonment for a term which may extend to six months, or with

(c) with fine, in any other case. fine, or with both, in a case where the amount of tax, penalty or interest which would have been evaded, if the declaration, account or statement had been accepted as true, or This amendment will take effect retrospectively from 1st March, 2026. which is wilfully attempted to be evaded, exceeds ten lakh rupees but does not exceed fifty lakh rupees;

Clause 22 of the Bill seeks to amend section 277A of the Income-tax Act, 1961 relating to falsification of books of account or document, etc. (iii) with fine, in any other case.

The said section, inter alia, provides that if any person wilfully and with intent to enable This amendment will take effect retrospectively from 1st March, 2026. any other person to evade any tax or interest or penalty chargeable and imposable under this Act, makes or causes to be made any entry or statement which is false and which the first Clause 24 of the Bill seeks to amend section 278A of the Income-tax Act, 1961 relating person either knows to be false or does not believe to be true, in any books of account or to punishment for second and subsequent offences.

other document relevant to or useful in any proceedings against the first person or the second person, under this Act, the first person shall be punishable with rigorous imprisonment for a The said section provides that if any person convicted of an offence under section 276B term which shall not be less than three months but which may extend to two years and with or section 276BB or sub-section (1) of section 276C or section 276CC or section 276DD or fine. section 276E or section 277 or section 278 is again convicted of an offence under any of the aforesaid provisions, he shall be punishable for the second and for every subsequent offence It is proposed to amend the said section of the Act so as to change the punishment from with rigorous imprisonment for a term which shall not be less than six months but which “rigorous imprisonment for a term which shall not be less than three months but which may may extend to seven years and with fine.

extend to two years and with fine” to “simple imprisonment for a term which may extend to two years and shall also be liable to fine”. It is proposed to amend the said section so as to change the from “rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years, and This amendment will take effect retrospectively from 1st March, 2026. with fine” to “simple imprisonment for a term which shall not be less than six months but which may extend to three years and shall also be liable to fine”.

Clause 23 of the Bill seeks to amend section 278 of the Income-tax Act, 1961 relating to abetment of false return, etc. This amendment will take effect retrospectively from 1st March, 2026.

The said section, inter alia, provides that if a person abets or induces in any manner Clause 25 of the Bill seeks to amend section 280 of the Income-tax Act, 1961 relating to another person to make and deliver an account or a statement or declaration relating to any disclosure of particulars by public servants.

income or any fringe benefits chargeable to tax which is false and which he either knows to be false or does not believe to be true or to commit an offence under sub-section (1) of section178 178 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— The said section 280(1), inter alia, that if a public servant furnishes any information or produces any document in contravention of the provisions of sub-section (2) of section 138, he shall be punishable with imprisonment which may extend to six months, and shall also be liable to fine.

It is proposed to amend the said section so as to change the punishment from “imprisonment which may extend to six months, and shall also be liable to fine” to “simple imprisonment which may extend to one month, or with fine, or with both”.

This amendment will take effect retrospectively from 1st March, 2026.

Clause 26 of the Bill seeks to insert a new section 292BA of the Income-tax Act, 1961 relating to return of income, etc., not to be invalid on certain grounds.

It is proposed to insert a new section 292BA so as to clarify that no assessment under any of the provisions of the said Act shall be invalid or shall be deemed to have been invalid on the ground of any mistake, defect or omission in respect of quoting of a computer generated Document Identification Number, if the assessment order is referenced by such number in any manner.

This amendment will take effect retrospectively from 1st October, 2019.

B.–– Income-tax under the Income-tax Act, 2025 Clause 27 of the Bill seeks to amend section 2 of the Income-tax Act, 2025 relating to definitions of the expressions.

Clause (32) of the said section provides for the definition of the expression “co-operative society”.

However, co-operative societies registered under the Multi-State Cooperative Societies Act, 2002, are not explicitly recognised in the definition presently provided in the said clause.

It is proposed to amend the said clause so as to include the co-operative societies registered under the Multi-State Co-operative Societies Act, 2002, within the scope of the definition of the expression “co-operative society”.

Clause (40) of the said section, inter alia, provides the definition of the expression “dividend”.

It is further proposed to omit sub-clause (f) of the said section so as to exclude consideration received on buyback of shares from the scope of dividend.

Sub-clause (v) to the first long line of the said clause provides that dividend does not include any advance or loan between two group entities, where,––178 179 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 179 The said section 280(1), inter alia, that if a public servant furnishes any information or (A) one of the group entities is a “Finance company” or a “Finance unit”; and produces any document in contravention of the provisions of sub-section (2) of section 138, he shall be punishable with imprisonment which may extend to six months, and shall also be (B) the parent entity or principal entity of such group is listed on stock exchange in a liable to fine. country or territory outside India other than the country or territory outside India as may be specified by the Board in this behalf.

It is proposed to amend the said section so as to change the punishment from “imprisonment which may extend to six months, and shall also be liable to fine” to “simple It is also proposed to substitute the said sub-clause, inter alia, so as to provide that the imprisonment which may extend to one month, or with fine, or with both”. other group entity to the transaction is located in a country or territory outside India, the parent entity or the principal entity of such group is listed on stock exchange in a country or This amendment will take effect retrospectively from 1st March, 2026. territory outside India, and for such purposes the country or territory outside India shall be specified by the Central Government, by notification in the Official Gazette.

Clause 26 of the Bill seeks to insert a new section 292BA of the Income-tax Act, 1961 relating to return of income, etc., not to be invalid on certain grounds. It is also proposed to provide definition of the expressions “group entity”, “parent entity” and “principal entity”.

It is proposed to insert a new section 292BA so as to clarify that no assessment under any of the provisions of the said Act shall be invalid or shall be deemed to have been invalid These amendments will take effect from 1st April, 2026 and will, accordingly, apply in on the ground of any mistake, defect or omission in respect of quoting of a computer relation to the tax year 2026-2027 and subsequent years.

generated Document Identification Number, if the assessment order is referenced by such number in any manner. Clause 28 seeks to amend section 7 of the Income-tax Act, 2025 relating to income deemed to be received and dividend deemed to be income in a tax year.

This amendment will take effect retrospectively from 1st October, 2019.

Clause (a) of sub-section (2) of the said section provides for the year of taxability of B.–– Income-tax under the Income-tax Act, 2025 dividend income by reference to the definition of dividend under section 2(40)(a) to (f). It is proposed to amend clause (a) of the said sub-section so as to omit the reference of clause (f) Clause 27 of the Bill seeks to amend section 2 of the Income-tax Act, 2025 relating to of section 2(40).

definitions of the expressions.

This amendment will take effect from 1st April, 2026 and will, accordingly, apply in Clause (32) of the said section provides for the definition of the expression “co-operative relation to the tax year 2026-2027 and subsequent years.

society”.

Clause 29 of the Bill seeks to amend section 21 of the Income-tax Act, 2025 relating to However, co-operative societies registered under the Multi-State Cooperative Societies determination of annual value.

Act, 2002, are not explicitly recognised in the definition presently provided in the said clause.

Sub-section (5) of the said provides that where a property is held as stock-in-trade and is It is proposed to amend the said clause so as to include the co-operative societies not let wholly or partly at any time during the tax year, the annual value of such property or registered under the Multi-State Co-operative Societies Act, 2002, within the scope of the part thereof shall be nil for two years from the end of the financial year in which the definition of the expression “co-operative society”. certificate for completion of construction is obtained from the competent authority.

Clause (40) of the said section, inter alia, provides the definition of the expression It is proposed to amend the said sub-section so as to change the annual value of property “dividend”. or part thereof to be treated as nil “for two years” instead of “up to two years”.

It is further proposed to omit sub-clause (f) of the said section so as to exclude This amendment will take effect from 1st April, 2026. consideration received on buyback of shares from the scope of dividend.

Clause 30 of the Bill seeks to amend section 22 of the Income-tax Act, 2025 relating to Sub-clause (v) to the first long line of the said clause provides that dividend does not deductions from income from house property.

include any advance or loan between two group entities, where,––180 180 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— The said section deals with deductions in the case of income from house property.

Further, sub-section (2) of the said section provides that the aggregate amount of deduction in the case of self-occupied property shall not exceed ₹ 2 lakhs where property is acquired or constructed with borrowed capital. However, this ceiling of ₹ 2 lakhs has not included the deduction of prior-period interest payable for the acquisition or construction of property.

It is proposed to amend the said sub-section so as to provide that aggregate amount of deduction for interest on borrowed capital shall be inclusive of prior-period interest payable.

This amendment will take effect from 1st April, 2026.

Clause 31 of the Bill seeks to amend section 29 of the Income-tax Act, 2025 relating to deductions related to employee welfare.

Sub-clause (i) of clause (e) of sub-section (1) of the said section provides for deduction of any amount of contribution received by the assesee being an employer from an employee to which the provisions of section 2(49)(o) apply, if such amount is credited by the assessee to the account of the employee in the relevant fund or funds by the due date.

Sub-clause (ii) of clause (e) of sub-section (1) of the said section provides that “due date” means the date by which the assessee is required as an employer to credit employee contribution to the account of an employee in the relevant fund under any Act, rule, order or

notification issued under it or under any standing order, award, contract of service or otherwise.

It is proposed to substitute the said clause so as to provide that due date for the purposes of the said section shall be on or before the due date of filing of return of income under

section 263(1) for the assessee.

This amendment will take effect from 1st April, 2026 and will, accordingly, apply in relation to the tax year 2026-2027 and subsequent years.

Clause 32 seeks to amend section 58 of the Income-tax Act, 2025 relating to special provision for computing profits and gains of business or profession on presumptive basis in case of certain residents.

It is proposed to amend this section omit the reference of section 144 and consequentially to omit sub-clause (i) of clause (a) of sub-section (11) of the said section.

This amendment will take effect from 1st April, 2026.

Clause 33 of the Bill seeks to amend section 66 of the Income-tax Act, 2025 relating to interpretation of certain expression in Part D of Chapter IV.

It is proposed to provide the definition of commodity derivative therein.180 181 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 181 The said section deals with deductions in the case of income from house property. This amendment will take effect from 1st April, 2026 and will, accordingly, apply in Further, sub-section (2) of the said section provides that the aggregate amount of deduction relation to the tax year 2026-2027 and subsequent years.

in the case of self-occupied property shall not exceed ₹ 2 lakhs where property is acquired or constructed with borrowed capital. However, this ceiling of ₹ 2 lakhs has not included the Clause 34 seeks to amend section 69 of the Income-tax Act, 2025 relating to capital deduction of prior-period interest payable for the acquisition or construction of property. gains on purchase by company of its own shares or other specified securities.

It is proposed to amend the said sub-section so as to provide that aggregate amount of It is proposed to substitute sub-section (2) so as to provide that in respect of capital deduction for interest on borrowed capital shall be inclusive of prior-period interest payable. gains referred to in sub-section (1), where the shareholder or holder of other specified securities is a promoter, the aggregate income-tax payable on such capital gains shall be,–– This amendment will take effect from 1st April, 2026.

(a) the income-tax payable on such capital gains in accordance with the provisions Clause 31 of the Bill seeks to amend section 29 of the Income-tax Act, 2025 relating to of the Act; and deductions related to employee welfare.

(b) an additional income tax in respect of capital gains specified in column B of Sub-clause (i) of clause (e) of sub-section (1) of the said section provides for deduction the Table below, computed at the rate specified in column C or column D of the said of any amount of contribution received by the assesee being an employer from an employee Table;

to which the provisions of section 2(49)(o) apply, if such amount is credited by the assessee to the account of the employee in the relevant fund or funds by the due date. TABLE Sub-clause (ii) of clause (e) of sub-section (1) of the said section provides that “due Sl. Income Rate, Rate, date” means the date by which the assessee is required as an employer to credit employee No where the where the contribution to the account of an employee in the relevant fund under any Act, rule, order or promoter is a promoter is

notification issued under it or under any standing order, award, contract of service or domestic other than a otherwise. company domestic company It is proposed to substitute the said clause so as to provide that due date for the purposes of the said section shall be on or before the due date of filing of return of income under A B C D

section 263(1) for the assessee. 1. Short-term capital gains 2% 10% referred to in section 196 arising This amendment will take effect from 1st April, 2026 and will, accordingly, apply in from the transfer of such securities.

relation to the tax year 2026-2027 and subsequent years. 2. Long-term capital gains 9.5% 17.5% referred to in section 197 or section Clause 32 seeks to amend section 58 of the Income-tax Act, 2025 relating to special 198 arising from the transfer of provision for computing profits and gains of business or profession on presumptive basis in such securities.

case of certain residents.

It is further proposed to substitute sub-section (3) so as to provide definitions to certain It is proposed to amend this section omit the reference of section 144 and consequentially expressions. to omit sub-clause (i) of clause (a) of sub-section (11) of the said section.

These amendments will take effect from the 1st April, 2026 and will, accordingly, apply This amendment will take effect from 1st April, 2026. in relation to the tax year 2026-2027 and subsequent years.

Clause 33 of the Bill seeks to amend section 66 of the Income-tax Act, 2025 relating to Clause 35 of the Bill seeks to amend section 70 of the Income-tax Act, 2025 relating to interpretation of certain expression in Part D of Chapter IV. transactions not regarded as transfer.

It is proposed to provide the definition of commodity derivative therein. It is proposed to substitute clause (x) of sub-section (1) of the said section so as to provide that the exemption will be applicable only to those Sovereign Gold Bonds issued by the182 182 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— Reserve Bank of India that are subscribed to by an individual at the time of original issue and are held continuously by such individual until redemption upon maturity, and to provide that this exemption shall apply uniformly to all Sovereign Gold Bonds issued by the Reserve Bank of India.

This amendment will take effect from 1st April, 2026 and will, accordingly, apply in relation to the tax year 2026-2027 and subsequent years.

Clause 36 seeks to amend section 93 of the Income-tax Act, 2025 relating to deductions.

The said section provides for deduction of interest expenditure, subject to a specified limit, while computing dividend income and income from units of mutual funds.

These amendments will take effect from 1st April, 2026 and will, accordingly, apply in relation to the tax year 2026–2027 and subsequent years.

Clause 37 of the Bill seeks to amend section 99 of the Income-tax Act, 2025 relating to income of individual to include income of spouse, minor, child, etc.

It is proposed to make consequential amendment in the said section regarding cross reference.

This amendment will take effect from 1st April, 2026.

Clause 38 of the Bill seeks to amend section 147 of the Income-tax Act 2025 relating to deductions for income of Offshore Banking Units and Units of International Financial Services Centre.

Sub-section (1) of the said section allows deduction to certain entities specified therein.

Sub-section (2) of the said section provides the time period for such deduction.

It is proposed to amend sub-section (2) of the said section so as to extend the tax holiday for twenty consecutive years from ten years and twenty consecutive years out of twenty-five years respectively to entities under clauses (a) and (b) of sub-section (1) of the said section.

It is further proposed to substitute sub-sections (5) so as to provide that the units referred to in sub-section (1) shall be entitled to benefit if such unit is not formed by splitting up, reconstruction, reorganisation or transfer a business.

It is also proposed to insert sub-section (6) to the said section so as to explain the expression “relevant tax year”, and to define the expressions “Unit” and “aircraft and ship”.182 183 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 183 Reserve Bank of India that are subscribed to by an individual at the time of original issue These amendments will take effect from 1st April, 2026 and will, accordingly, apply in and are held continuously by such individual until redemption upon maturity, and to provide relation to the tax year 2026-2027 and subsequent years.

that this exemption shall apply uniformly to all Sovereign Gold Bonds issued by the Reserve Bank of India. Clause 39 of the Bill seeks to amend section 149 of the Income-tax Act, 2025 relating to deduction in respect of income of co-operative societies.

This amendment will take effect from 1st April, 2026 and will, accordingly, apply in relation to the tax year 2026-2027 and subsequent years. Clause (b) of sub-section (2) of the said section, inter alia, provides for deduction of whole of the amount of profits and gains of business in the case of a co-operative society, Clause 36 seeks to amend section 93 of the Income-tax Act, 2025 relating to deductions. being a primary society engaged in supplying milk, oilseeds, fruits, or vegetables raised or grown by its members to certain entities.

The said section provides for deduction of interest expenditure, subject to a specified limit, while computing dividend income and income from units of mutual funds. It is proposed to include cotton seeds and cattle feed also within the ambit of the said clause.

It is proposed to amend sub-section (1) and substitute sub-section (2) of the said section so as to provide that no deduction shall be allowed in respect of any expenditure against Clause (d) of sub-section (2) of the said section allows for deduction of income by way dividend income and income from units of mutual funds. of dividends received by the co-operative society from any other co-operative society in the old tax regime.

These amendments will take effect from 1st April, 2026 and will, accordingly, apply in relation to the tax year 2026–2027 and subsequent years. It is further proposed to amend said clause so as to provide that the inter-cooperative societies dividend shall also be allowed as a deduction under the new tax regime under Clause 37 of the Bill seeks to amend section 99 of the Income-tax Act, 2025 relating to sections 203 and 204 of the Act, for the co-operative societies, to the extent such dividend is income of individual to include income of spouse, minor, child, etc. distributed by the co-operative society to its members.

It is proposed to make consequential amendment in the said section regarding cross It is also proposed to insert a new sub-section (6) to define to certain expressions. reference.

These amendments will take effect from 1st April, 2026 and will, accordingly, apply in This amendment will take effect from 1st April, 2026. relation to the tax year 2026-2027 and subsequent years.

Clause 38 of the Bill seeks to amend section 147 of the Income-tax Act 2025 relating to Clause 40 of the Bill seeks to substitute section 150 of the Income-tax Act, 2025 relating deductions for income of Offshore Banking Units and Units of International Financial to interpretation for purposes of section 149.

Services Centre.

The proposed section provides for deduction in respect of federal co-operative.

Sub-section (1) of the said section allows deduction to certain entities specified therein.

Sub-section (2) of the said section provides the time period for such deduction. Sub-section (1) of the proposed section provides that the income by way of dividend by federal co-operative from any company in respect of investments made on or before the 31st It is proposed to amend sub-section (2) of the said section so as to extend the tax holiday January, 2026 is to be allowed as deduction in both the new and the old tax regime.

for twenty consecutive years from ten years and twenty consecutive years out of twenty-five years respectively to entities under clauses (a) and (b) of sub-section (1) of the said section. Sub-section (2) thereof provides that such deduction shall not apply to any tax year beginning on or after the 1st April, 2029.

It is further proposed to substitute sub-sections (5) so as to provide that the units referred to in sub-section (1) shall be entitled to benefit if such unit is not formed by splitting up, Sub-section (3) thereof provides for the definition of the expression “federal co- reconstruction, reorganisation or transfer a business. operative”.

It is also proposed to insert sub-section (6) to the said section so as to explain the This amendment will take effect from 1st April, 2026 and will, accordingly, apply in expression “relevant tax year”, and to define the expressions “Unit” and “aircraft and ship”. relation to the tax year 2026-2027 and subsequent years.184 184 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— Clause 41 seeks to amend section 162 of the Income-tax Act, 2025 relating to meaning of associate of enterprise.

It is proposed to amend the said section to substitute clause (c) of sub-section (1) to remove the reference of section 144.

This amendment will take effect from 1st April, 2026.

Clause 42 seeks to amend section 164 of the Income-tax Act, 2025 relating to meaning of specified domestic transaction.

It is proposed to substitute clause (d) of the said section to omit the reference of section

144.

This amendment will take effect from 1st April, 2026.

Clause 43 seeks to amend section 165 of the Income-tax Act, 2025 relating to determination of arm’s length price.

It is proposed to amend sub-section (7) of the said section to omit the reference of section

144.

This amendment will take effect from 1st April, 2026.

Clause 44 of the Bill seeks to amend section 166 of the Income-tax Act, 2025 relating to reference to Transfer Pricing Officer.

The said section provides that where an assessee, has entered into an international transaction or specified domestic transaction in any previous year, and the Assessing Officer has made a reference for computation of the arm's length price in relation to the said international transaction or specified domestic transaction to the Transfer Pricing Officer.

Sub-section (7) of the said section 166 provides that where a reference to Transfer pricing Officer was made under sub-section (1), an order under sub-section (6) has to be made at any time sixty days before the expiry of the period specified in section 286 or 296, for making the order of assessment or reassessment or recomputation or fresh assessment.

It is proposed to amend the said sub-section to clarify that where a reference has been made under sub-section (1), an order under sub-section (6) has to be made at any time before one month prior to the month in which the period of limitation referred to in section 286 or 296, for making the order of assessment or reassessment or recomputation or fresh assessment, expires and accordingly, where such period–

(a) expires on the 31st March of any year, the order under sub-section (6) has to be made on or before the 31st January of that year;184 185 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 185 Clause 41 seeks to amend section 162 of the Income-tax Act, 2025 relating to meaning (b) expires on the 31st December of any year, the order under sub-section (6) of associate of enterprise. has to be made on or before the 31st October of that year.

It is proposed to amend the said section to substitute clause (c) of sub-section (1) to This amendment will take effect from 1st April, 2026 and will, accordingly, apply in remove the reference of section 144. relation to the tax year 2026-2027 and subsequent years.

This amendment will take effect from 1st April, 2026. Clause 45 of the Bill seeks to amend section 169 of the Income-tax Act, 2025 relating to effect to advance pricing agreement.

Clause 42 seeks to amend section 164 of the Income-tax Act, 2025 relating to meaning of specified domestic transaction. Sub-section (1) of the said section provides that if return for any tax year covered by an advance pricing agreement has been furnished by any person, before the date of entering into It is proposed to substitute clause (d) of the said section to omit the reference of section the said agreement, he shall, irrespective of anything to the contrary contained in section 263,

144. furnish a modified return, in accordance with and limited to the agreement, in respect of such tax years, within three months from the end of the month in which the agreement was entered This amendment will take effect from 1st April, 2026. into.

Clause 43 seeks to amend section 165 of the Income-tax Act, 2025 relating to It is proposed to substitute the said sub-section so as to provide that where an income is determination of arm’s length price. modified as a result of advance pricing agreement entered into with any person then, such person shall, or any other person being an associated enterprise, may, furnish a return or a It is proposed to amend sub-section (7) of the said section to omit the reference of section modified return, as the case may be, in accordance with and limited to the agreement; within

144. a period of three months from the end of the month in which the said agreement was entered into, in respect of tax years covered by such agreement.

This amendment will take effect from 1st April, 2026.

This amendment will take effect from 1st April, 2026 and will, accordingly, apply in Clause 44 of the Bill seeks to amend section 166 of the Income-tax Act, 2025 relating relation to the tax year 2026-2027 and subsequent years.

to reference to Transfer Pricing Officer.

Clause 46 of the Bill seeks to amend section 195 of the Income-tax Act, 2025 relating to The said section provides that where an assessee, has entered into an international tax on income referred to in sections 102 to 106.

transaction or specified domestic transaction in any previous year, and the Assessing Officer has made a reference for computation of the arm's length price in relation to the said It is to proposed to amend the said section so as to reduce the rate of income-tax calculated international transaction or specified domestic transaction to the Transfer Pricing Officer. on income referred to in sections 102 to 106 from 60% to 30%.

Sub-section (7) of the said section 166 provides that where a reference to Transfer This amendment will take effect from 1st April, 2026 and will, accordingly, apply in pricing Officer was made under sub-section (1), an order under sub-section (6) has to be relation to the tax year 2026-2027 and subsequent years.

made at any time sixty days before the expiry of the period specified in section 286 or 296, for making the order of assessment or reassessment or recomputation or fresh assessment. Clause 47 seeks to amend section 202 of the Income-tax Act, 2025 relating to new tax regime for individual Hindu undivided family and others.

It is proposed to amend the said sub-section to clarify that where a reference has been made under sub-section (1), an order under sub-section (6) has to be made at any time before It is proposed to omit sub-clause (iii) of clause (a) of sub-section (2) of the said section one month prior to the month in which the period of limitation referred to in section 286 or to omit the reference of section 144.

296, for making the order of assessment or reassessment or recomputation or fresh assessment, expires and accordingly, where such period– This amendment will take effect from 1st April, 2026.

(a) expires on the 31st March of any year, the order under sub-section (6) has to be Clause 48 of the Bill seeks to amend section 203 of the Income-tax Act, 2025 relating made on or before the 31st January of that year; to tax on income of certain resident co-operative societies.186 186 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— The said section provides for the deduction not to be allowed on dividends received by co-operatives.

It is proposed to amend sub-clause (i) of clause (a) of sub-section (1) of the said section so as to provide that the inter-co-operative societies dividend be allowed as a deduction under the new tax regime provided under the said section for co-operative societies, to the extent such dividend is distributed by the cooperative society to its members.

It is further proposed that the income by way of dividend received by federal co- operative referred to in section 150 from any company in respect of investments made before the 31st January, 2026 be allowed as deduction in the new tax regime. This deduction is proposed to be limited to the amount of dividend distributed by the federal cooperative to its members and which is received on or before 31st March, 2029.

It is also proposed to insert a new sub-section (7) so as to provide that in case of on assessee, being a co-operative societies, which has exercised option under sub-section (5) the requirements contained in sub-section (1) shall be modified to the extent that the deduction under section 149(2)(d)(ii) shall be available to such assessee as does not exceed the amount of dividend distributed by it to its members at least one month before the due date for filing the return of income under section 263(1).

These amendments will take effect from 1st April, 2026 and will, accordingly, apply in relation to the tax year 2026-2027 and subsequent years.

Clause 49 of the Bill seeks to amend section 204 of the Income-tax Act, 2025 relating to tax on income of certain new manufacturing co-operative societies.

The said section provides for the deduction not to be allowed on dividends received by co-operatives.

It is proposed to amend sub-section (i) of clause (a) of sub-section (1) of the said section to provide that the inter-co-operative societies dividend be allowed as a deduction under the new tax regime provided under section 204 for the cooperative societies, to the extent such dividend is distributed by the cooperative society to its members.

It is further proposed that the income by way of dividend received by federal cooperatives from any company in respect of investments made before 31st January, 2026 be allowed as deduction in the new tax regime. This deduction is proposed to be limited to the amount of dividend distributed by the federal cooperative to its members and which is received on or before 31st March, 2029.

It is also proposed to insert a new sub-section (5) so as to provide that in case of on assessee, being a co-operative societies, which has exercised option under sub-section (2), the requirements contained in sub-section (3), shall be modified to the extent that the deduction under section 149(2)(d)(ii) shall be available to such assessee as does not exceed186 187 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 187 The said section provides for the deduction not to be allowed on dividends received by the amount of dividend distributed by it to its members at least one month before the due co-operatives. date for filing the return of income under section 263(1).

It is proposed to amend sub-clause (i) of clause (a) of sub-section (1) of the said section These amendments will take effect from 1st April, 2026 and will, accordingly, apply in so as to provide that the inter-co-operative societies dividend be allowed as a deduction under relation to the tax year 2026-2027 and subsequent years.

the new tax regime provided under the said section for co-operative societies, to the extent such dividend is distributed by the cooperative society to its members. Clause 50 of the Bill seeks to amend section 206 of the Income-tax Act relating to special provision for minimum alternate tax and alternate minimum tax.

It is further proposed that the income by way of dividend received by federal co- operative referred to in section 150 from any company in respect of investments made before The said section, inter alia, provides for minimum alternate tax applicable only for the 31st January, 2026 be allowed as deduction in the new tax regime. This deduction is companies. This tax is charged on the book profit of the assessee and not the taxable income proposed to be limited to the amount of dividend distributed by the federal cooperative to its computed under the provisions of the Act. The rate of minimum alternate tax is 15% for members and which is received on or before 31st March, 2029. corporates other than units located in an International Financial Services Centre. In case the minimum alternate tax is higher than the income-tax payable on the company's total income It is also proposed to insert a new sub-section (7) so as to provide that in case of on computed under normal tax provisions, the assessee pays minimum alternate tax and is assessee, being a co-operative societies, which has exercised option under sub-section (5) allowed credit on the difference.

the requirements contained in sub-section (1) shall be modified to the extent that the deduction under section 149(2)(d)(ii) shall be available to such assessee as does not exceed If a company pays minimum alternate tax when it is higher than regular tax, the excess the amount of dividend distributed by it to its members at least one month before the due amount paid is allowed as a tax credit which can be carried forward up to fifteen years and date for filing the return of income under section 263(1). can be set off in future years where the company's regular tax liability exceeds the minimum alternate tax liability.

These amendments will take effect from 1st April, 2026 and will, accordingly, apply in relation to the tax year 2026-2027 and subsequent years. It is proposed that minimum alternate tax is to be made a final tax in the old regime and shall be liable to a tax rate of 14% instead of the existing 15%. Further, set-off of minimum Clause 49 of the Bill seeks to amend section 204 of the Income-tax Act, 2025 relating alternate tax credit is to be allowed only in the new tax regime for domestic companies.

to tax on income of certain new manufacturing co-operative societies. However, the amount of set off shall be restricted to 25% of the tax liability. In the case of foreign companies, set off is proposed to be allowed to the extent of the difference between The said section provides for the deduction not to be allowed on dividends received by the tax on the total income and the minimum alternate tax for the tax year in normal tax is co-operatives. more than minimum alternate tax.

It is proposed to amend sub-section (i) of clause (a) of sub-section (1) of the said section Clause (l) of sub-section (1) of the said section provides for the provisions pertaining to provide that the inter-co-operative societies dividend be allowed as a deduction under the to minimum alternate tax shall not apply to any assessee, being a foreign company, where new tax regime provided under section 204 for the cooperative societies, to the extent such the total income of the assessee comprises solely of profits and gains from business referred dividend is distributed by the cooperative society to its members. to in section 61(2) (Table: Sl. Nos. 1, 3, 4 and 5), and such income has been offered to tax at the rates specified in the respective sections. However, certain other specified businesses of It is further proposed that the income by way of dividend received by federal non-residents who have also opted for presumptive taxation under section 61 have not been cooperatives from any company in respect of investments made before 31st January, 2026 so excluded.

be allowed as deduction in the new tax regime. This deduction is proposed to be limited to It is further proposed to amend the said clause to substitute sub-clause (iii) so as to the amount of dividend distributed by the federal cooperative to its members and which is provide that the specified businesses shall also be excluded from the applicability of received on or before 31st March, 2029. minimum alternate tax.

It is also proposed to insert a new sub-section (5) so as to provide that in case of on These amendments will take effect from 1st April, 2026 and will, accordingly, apply in assessee, being a co-operative societies, which has exercised option under sub-section (2), relation to the tax year 2026-2027 and subsequent years.

the requirements contained in sub-section (3), shall be modified to the extent that the deduction under section 149(2)(d)(ii) shall be available to such assessee as does not exceed188 188 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— Clause 51 of the Bill seeks to substitute sections 217 and 218 of the Income-tax Act, 2025 relating to benefit under Chapter to be available in certain cases even after assessee becomes resident and Chapter not to apply if the assessee so chooses, respectively, with new sections.

The proposed section 217 provides for application of benefits under sections 212 to 216.

This amendment will take effect from 1st April, 2026 and will, accordingly, apply in relation to the tax year 2026-2027 and subsequent years.

Clause 52 seeks to amend section 227 of the Income-tax Act, 2025 relating to computation of tonnage income.

Sub-section (4) of the said section provides that the tonnage shall mean the tonnage of a ship or inland vessel, as the case may be, indicated in the certificate referred to in sub-

section (9) of the said section.

It is proposed to amend clause (a) of sub-section (4) of the said section so as to substitute the word “certificate” with the words “valid certificate”.

Sub-clause (iii) of clause (b) of sub-section (9) of the said section provides that in case of inland vessel registered in India, a valid certificate shall mean a certificate issued under the Inland Vessels Act, 2021.

It is proposed to amend the said sub- clause so as to substitute the word “certificate” with the words “certificate of registration”.

These amendments will take effect from 1st April, 2026 and will, accordingly, apply in relation the tax year 2026-2027 and subsequent years.

Clause 53 seeks to amend section 228 of the Income-tax Act, 2025 relating to relevant shipping income and exclusion from book profit.

Item (A) of sub-clause (ii) of clause (b) of sub-section (3) of the said section provides that on-board or on-shore activities of passenger ships would be included in the core activities of a tonnage company.

It is proposed to amend the said item so as to bring inland vessels also under its ambit.

This amendment will take effect from 1st April, 2026 and will, accordingly, apply in relation to the tax year 2026-2027 and subsequent years.188 189 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 189 Clause 51 of the Bill seeks to substitute sections 217 and 218 of the Income-tax Act, 2025 Clause 54 seeks to amend section 232 of the Income-tax Act, 2025 relating to certain relating to benefit under Chapter to be available in certain cases even after assessee becomes conditions for applicability of tonnage tax scheme.

resident and Chapter not to apply if the assessee so chooses, respectively, with new sections.

Sub-section (12) of the said section provides that a tonnage tax company shall comply The proposed section 217 provides for application of benefits under sections 212 to 216. with the minimum training requirement in respect of trainee officers as per the guidelines issued by the Director-General of Shipping and notified by the Central Government.

It is proposed to substitute the said sections so as to give effect to the proposal related to taxation of income of Offshore Banking Units and Units of International Financial Services It is proposed to amend the said sub-section so as to insert reference to Inland Centre in non-holiday period. Waterways Authority of India, in case of inland vessels.

This amendment will take effect from 1st April, 2026 and will, accordingly, apply in Sub-section (13) of the said section provides that a tonnage tax company is required to relation to the tax year 2026-2027 and subsequent years. furnish a copy of the certificate issued by the Director-General of Shipping to the effect that such company has complied with the minimum training requirement a per the relevant Clause 52 seeks to amend section 227 of the Income-tax Act, 2025 relating to guidelines along with the return of income under section 263.

computation of tonnage income.

It is further proposed to amend the said sub-section so as to insert reference to Sub-section (4) of the said section provides that the tonnage shall mean the tonnage of designated authority as appointed by the respective State Governments under the Inland a ship or inland vessel, as the case may be, indicated in the certificate referred to in sub- Vessels Act, 2021.

section (9) of the said section.

Sub-section (17) of the said section provides that the average of net tonnage shall be It is proposed to amend clause (a) of sub-section (4) of the said section so as to computed in the manner prescribed, in consultation with the Director-General of Shipping.

substitute the word “certificate” with the words “valid certificate”.

It is also proposed to amend the said sub-section so as to insert reference to the Inland Sub-clause (iii) of clause (b) of sub-section (9) of the said section provides that in case Waterways Authority of India.

of inland vessel registered in India, a valid certificate shall mean a certificate issued under the Inland Vessels Act, 2021. These amendments will take effect from 1st April, 2026 and will, accordingly, apply in relation to the tax year 2026-2027 and subsequent years.

It is proposed to amend the said sub- clause so as to substitute the word “certificate” with the words “certificate of registration”. Clause 55 seeks to amend section 235 of the Income-tax Act, 2025 relating to interpretation for certain expressions in Part G of Chapter XIII.

These amendments will take effect from 1st April, 2026 and will, accordingly, apply in relation the tax year 2026-2027 and subsequent years. It is proposed to amend the said section to insert new sub-clause (fa) so as to provide that “Inland Waterways Authority of India” shall have the same meaning as assigned to it in Clause 53 seeks to amend section 228 of the Income-tax Act, 2025 relating to relevant section 3 of the Inland Waterways Authority of India Act, 1985.

shipping income and exclusion from book profit.

This amendment will take effect from 1st April, 2026 and will, accordingly, apply in Item (A) of sub-clause (ii) of clause (b) of sub-section (3) of the said section provides relation to the tax year 2026-2027 and subsequent years.

that on-board or on-shore activities of passenger ships would be included in the core activities of a tonnage company. Clause 56 of the Bill seeks to amend section 262 of the Income-tax Act, 2025 relating to Permanent Account Number.

It is proposed to amend the said item so as to bring inland vessels also under its ambit.

The said section provides that the Board may make rules to provide for categories of This amendment will take effect from 1st April, 2026 and will, accordingly, apply in documents pertaining to business or profession in which Permanent Account Number shall relation to the tax year 2026-2027 and subsequent years. be quoted by every person;190 190 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— It is proposed to amend clause (c) of sub-section (10) of the said section so as to enable the Central Board of Direct Taxes to make rules for quoting of Permanent Account Number in documents in such transactions which do not relate to business or profession.

This amendment will take effect from 1st April, 2026.

Clause 57 of the Bill seeks to amend section 263 of the Income-tax Act, 2025 relating to return of income.

Clause (c) of sub-section (1) of said section defines the expression “due date” as the date of the financial year succeeding the relevant tax year for filing the return of income by different classes of assessee or person with different conditions applied therein.

It is proposed to substitute said clause (c) for the purposes of this section “due date” in respect of the persons mentioned column B of the Table below, subject to the conditions mentioned in column C of the said Table, shall be the due date of the financial year

succeeding the relevant tax year as mentioned in column D thereof:

TABLE Sl. No. Person Conditions Due date A B C D

1. Assessee, including the partners Where the 30th of the firm or the spouse of such provisions of November. partner (if section 10 applies to section 172 such spouse). apply.

2. (i) Company; Where the 31st provisions of October.

(ii) Assessee (other than a section 172 do company) whose accounts are not apply. required to be audited under this Act or under any other law in force;

(iii) partner of a firm whose accounts are required to be audited under this Act or under any other law in force; or the spouse of such partner (if

section 10 applies to such spouse).190 191 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 191 It is proposed to amend clause (c) of sub-section (10) of the said section so as to enable 3. (i) Assessee having income Where the 31st the Central Board of Direct Taxes to make rules for quoting of Permanent Account Number from profits and gains of provisions of August.

in documents in such transactions which do not relate to business or profession. business or profession whose section 172 do accounts are not required to be not apply.

This amendment will take effect from 1st April, 2026. audited under this Act or under any other law in force;

Clause 57 of the Bill seeks to amend section 263 of the Income-tax Act, 2025 relating to return of income. (ii) partner of a firm whose accounts are not required to be Clause (c) of sub-section (1) of said section defines the expression “due date” as the audited under this Act or under date of the financial year succeeding the relevant tax year for filing the return of income by any other law in force or the different classes of assessee or person with different conditions applied therein. spouse of such partner (if

section 10 applies to such It is proposed to substitute said clause (c) for the purposes of this section “due date” in spouse). respect of the persons mentioned column B of the Table below, subject to the conditions mentioned in column C of the said Table, shall be the due date of the financial year 4. Any other assessee. 31st July.

succeeding the relevant tax year as mentioned in column D thereof:

Sub-section (5) of the said section deals with the revised return of income. It allows a TABLE person who has already furnished a return under section 263(1) and (4) to file a revised return, if any omission or wrong statement is discovered in the original or belated return.

Sl. No. Person Conditions Due date Such revised return required to be furnished within nine months from the end of the relevant tax year or before completion of assessment, whichever is earlier.

A B C D

1. Assessee, including the partners Where the 30th It is further proposed to amend the said section so as to increase the prescribed time of the firm or the spouse of such provisions of November. limit for filing the revised return from its existing time limit of nine months to twelve months partner (if section 10 applies to section 172 from the end of the relevant tax year.

such spouse). apply.

The said section provides for comprehensive framework that lays down the class of

2. (i) Company; Where the 31st persons who are required to file a return, the due dates, and the different types of returns that provisions of October. may be furnished. It covers the original return, belated return, revised return and updated

(ii) Assessee (other than a section 172 do return. company) whose accounts are not apply. required to be audited under this Sub-section (6) of the said section provides for the updated return of income. It allows Act or under any other law in a taxpayer, whether or not a return was furnished earlier, to file an updated return within force; forty-eight months from the end of the financial year succeeding the relevant tax year. This provision promotes voluntary compliance on the part of taxpayer to offer the income for

(iii) partner of a firm whose taxation. accounts are required to be audited under this Act or under Sub-clause (v) of clause (c) of the said sub-section prohibits filing of updated return any other law in force; or the in such cases where any proceedings for assessment or reassessment or recomputation or spouse of such partner (if revision of income is pending or has been completed for the said tax year.

section 10 applies to such spouse). It is proposed to amend the said sub-section so that an updated return may be furnished by a person for the relevant tax year in pursuance of a notice issued under section192 192 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— 280 within such period as specified in the said notice and in such a case, the assessee shall be precluded from filing of return in pursuance of the said notice in any other manner.

It is also proposed to provide the filing of updated return for reducing the loss in specified circumstances.

It is also proposed to amend clause (e) of sub-section (6) of the said section so as to give the reference of “206(3) and (4)” instead of “206(l)(m) to (p)”.

These amendments will take effect from 1st April, 2026.

Clause 58 of the Bill seeks to amend section 266 of the Income-tax Act, 2025 relating to self-assessment.

It is proposed to make consequential amendments in order to bring the changes proposed in the minimum alternate tax regime by giving reference of section 206(3) and (4) instead of 206(1) (m) to (p).

These amendments will take effect from 1st April, 2026 and will, accordingly, apply in relation to the tax year 2026-2027 and subsequent years.

Clause 59 of the Bill seeks to amend section 267 of the Income-tax Act, 2025 relating to tax on updated return.

It is proposed to make consequential amendments in order to bring changes proposed in the minimum alternate tax regime by giving reference of section 206(3) and (4) instead of

section 206(1)(m) to (p).

Sub-section (5) of the said section provides that additional income-tax amounting to 25%, 50%, 60% and 70% of the aggregate of tax and interest payable, shall be paid alongwith original tax and interest payable, for filing the updated return in first, second, third and fourth year, respectively from the end of the financial year succeeding the relevant tax year.

It is proposed to amend the said sub-section so as to prescribe that where an updated return is filed in pursuance of a notice issued under section 280 within the period specified in the said notice, the additional income-tax payable shall be increased by a further sum of 10 % of the aggregate of tax and interest payable on account of furnishing the updated return.

These amendments will take effect from 1st April, 2026 and will, accordingly, apply in relation to the tax year 2026-2027 and subsequent years.

Clause 60 seeks to amend section 270 of the Income-tax Act, 2025 relating to assessment.

It is proposed to amend sub-clause (vi) of clause (a) of sub-section (1) of the said section to omit the reference of section 144.192 193 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 193 280 within such period as specified in the said notice and in such a case, the assessee shall This amendment will take effect from 1st April, 2026.

be precluded from filing of return in pursuance of the said notice in any other manner.

Clause 61 of the Bill seeks to amend section 275 of the Income-tax Act, 2025 relating It is also proposed to provide the filing of updated return for reducing the loss in specified to reference to Dispute Resolution Panel.

circumstances.

The said section, inter alia, provides for the procedure and scheme for making a It is also proposed to amend clause (e) of sub-section (6) of the said section so as reference to the Dispute Resolution Panel in respect of certain eligible assessee. Further, to give the reference of “206(3) and (4)” instead of “206(l)(m) to (p)”. section 286 of the said Act provides for the time limits for completion of assessment, reassessment and recomputation proceedings and sets the time limit for concluding such These amendments will take effect from 1st April, 2026. proceedings.

Clause 58 of the Bill seeks to amend section 266 of the Income-tax Act, 2025 relating to The Dispute Resolution Panel mechanism, as provided under section 275 of the said self-assessment. Act provides for a specific procedure as below:–– It is proposed to make consequential amendments in order to bring the changes proposed (i) filing of objections before the Dispute Resolution Panel — within thirty days in the minimum alternate tax regime by giving reference of section 206(3) and (4) instead of from the date of receipt of the draft assessment order;

206(1) (m) to (p).

(ii) issuance of directions by the Dispute Resolution Panel — within nine months These amendments will take effect from 1st April, 2026 and will, accordingly, apply in from the end of the month in which the draft assessment order is forwarded to the eligible relation to the tax year 2026-2027 and subsequent years. assessee; and Clause 59 of the Bill seeks to amend section 267 of the Income-tax Act, 2025 relating to (iii) passing of the final assessment order — irrespective of anything contained in tax on updated return. section 286 of the said Act, within one month from the end of the month in which the directions of the Dispute Resolution Panel are received, as mandated under section It is proposed to make consequential amendments in order to bring changes proposed in 275(14) of the said Act.

the minimum alternate tax regime by giving reference of section 206(3) and (4) instead of

section 206(1)(m) to (p). In cases where the assessee accepts the draft assessment order and does not file objections before the Dispute Resolution Panel, the Assessing Officer is required, Sub-section (5) of the said section provides that additional income-tax amounting to 25%, notwithstanding anything contained in sections 286 of the said Act, as the case may be, to 50%, 60% and 70% of the aggregate of tax and interest payable, shall be paid alongwith pass the final assessment order within one month from the end of the month in which the original tax and interest payable, for filing the updated return in first, second, third and fourth period specified for filing objections expires, in terms of section 275(4) of the said Act.

year, respectively from the end of the financial year succeeding the relevant tax year.

It is proposed to amend sub-sections (4) and (14) of section 275 of the said Act so as It is proposed to amend the said sub-section so as to prescribe that where an updated to clarify that the period available to the Assessing Officer under the section shall be in return is filed in pursuance of a notice issued under section 280 within the period specified addition to the period available to him under section 286 of the said Act.

in the said notice, the additional income-tax payable shall be increased by a further sum of 10 % of the aggregate of tax and interest payable on account of furnishing the updated return. These amendments will take effect from 1st April, 2026 and will, accordingly, apply in relation to the tax year 2026-2027 and subsequent years.

These amendments will take effect from 1st April, 2026 and will, accordingly, apply in relation to the tax year 2026-2027 and subsequent years. Clause 62 of the Bill seeks to amend section 279 of the Income-tax Act, 2025 relating to income escaping assessment.

Clause 60 seeks to amend section 270 of the Income-tax Act, 2025 relating to assessment.

Vide the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) It is proposed to amend sub-clause (vi) of clause (a) of sub-section (1) of the said section Act, 2020, section 144B and 151A have been inserted in the Income-tax Act, 1961. Further, to omit the reference of section 144. section 144B of the Act prescribes a statutory procedure for faceless assessments with effect from 1st April, 2021.194 194 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—

Section 147 of the Income-tax Act, 1961 empowers the Assessing Officer to assess, reassess, or recompute income if any income chargeable to tax has escaped assessment for a particular assessment year. Further, section 148 of the Act, Assessing Officer is mandated to issue a notice to the assessee so as to furnish a return of income where income chargeable to tax has escaped assessment.

The Finance Act, 2021 had inserted section 148A in the Income-tax Act, 1961 with effect from 1st April 2021 to introduce a mandatory pre-notice inquiry process and opportunity of hearing before issuance of a notice under section 148. The provision requires the Assessing Officer to conduct an inquiry, if required, with prior approval of the specified authority, provide the assessee with a show cause notice along with information suggesting escapement of income, and grant an opportunity of being heard. After considering the assessee’s reply, the Assessing Officer is required to pass a reasoned order under sub-section

(3) of section 148A, as the case maybe, determining whether it is a fit case for issuance of notice under section 148. The said order under sub-section (3) of section 148A is issued with the prior approval of the specified authority.

It is proposed to amend section 279 of the Income-tax Act, 2025 so as to align it with proposed insertion of section 147A of the Income-tax Act, 1961 to provide that the “Assessing Officer” for the purposes of sections 280 and 281 shall mean to be an Assessing Officer other than the National Faceless Assessment Centre or any assessment unit referred to in section 273(3).

This amendment will take effect from 1st April, 2026.

Clause 63 of the Bill seeks to amend section 286 of the Income-tax Act, 2025 relating to the time limit for completion of assessment, reassessment and recomputation.

Section 286 of the said Act provides for the time limits for completion of assessment, reassessment, and recomputation proceedings and sets the outer time limit for concluding such proceedings.

It is proposed to amend sub-section (2) of the said section so as to clarify that in terms of provisions of section 286(1) [Table: Sl No. 1 to 4] and sub-section (2), the draft of the proposed order of assessment referred to in section 275 shall be made at any time up to the time limit of assessment, reassessment or recomputation referred in the said table and the said sub-section.

This amendment will take effect from 1st April, 2026 and will, accordingly, apply in relation to the tax year 2026-2027 and subsequent years.

Clause 64 of the Bill seeks to amend section 295 of the Income-tax Act, 2025 relating to undisclosed income of any other person.194 195 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 195

Section 147 of the Income-tax Act, 1961 empowers the Assessing Officer to assess, The said section provides for taxing undisclosed income where the Assessing officer is reassess, or recompute income if any income chargeable to tax has escaped assessment for a satisfied that any undisclosed income belongs to or pertains to or relates to any person in particular assessment year. Further, section 148 of the Act, Assessing Officer is mandated whose case search is not initiated or requisition is not made.

to issue a notice to the assessee so as to furnish a return of income where income chargeable to tax has escaped assessment. It is proposed to amend sub-section (2) of the said section so as to limit the period of block assessment in case of third party where incriminating material has bearing on the The Finance Act, 2021 had inserted section 148A in the Income-tax Act, 1961 with undisclosed income of only a single tax year immediately preceding the tax year in which effect from 1st April 2021 to introduce a mandatory pre-notice inquiry process and search is initiated or requisition is made.

opportunity of hearing before issuance of a notice under section 148. The provision requires the Assessing Officer to conduct an inquiry, if required, with prior approval of the specified This amendment will take effect from 1st April, 2026 and will, accordingly, apply in authority, provide the assessee with a show cause notice along with information suggesting relation to the tax year 2026-2027 and subsequent years.

escapement of income, and grant an opportunity of being heard. After considering the assessee’s reply, the Assessing Officer is required to pass a reasoned order under sub-section Clause 65 of the Bill seeks to amend section 296 of the Income-tax Act, 2025 relating

(3) of section 148A, as the case maybe, determining whether it is a fit case for issuance of to time-limit for completion of block assessment. notice under section 148. The said order under sub-section (3) of section 148A is issued with the prior approval of the specified authority. Section 296 of the Act, provides for time-limit for completing a block assessment. An assessment or reassessment order under section 294 (procedure for block assessment) must It is proposed to amend section 279 of the Income-tax Act, 2025 so as to align it with be completed within twelve months from the end of the quarter in which the last search proposed insertion of section 147A of the Income-tax Act, 1961 to provide that the authorization was executed or requisition was made. While, the time-limit for completion of “Assessing Officer” for the purposes of sections 280 and 281 shall mean to be an Assessing block assessment of any other person shall be twelve months from the end of the quarter in Officer other than the National Faceless Assessment Centre or any assessment unit referred which the notice under section 294 in pursuance of section 295, was issued to such other to in section 273(3). person.

This amendment will take effect from 1st April, 2026. It is proposed to amend the said section so as to take the date of initiation of search as the reference point to decide the date of limitation for block assessment and consequently, Clause 63 of the Bill seeks to amend section 286 of the Income-tax Act, 2025 relating to the period of twelve months is proposed to be to eighteen months from the end of the quarter the time limit for completion of assessment, reassessment and recomputation. in which search was initiated or requisition was made.

Section 286 of the said Act provides for the time limits for completion of assessment, This amendment will take effect from 1st April, 2026 and will, accordingly, apply in reassessment, and recomputation proceedings and sets the outer time limit for concluding relation to the tax year 2026-2027 and subsequent years.

such proceedings.

It is proposed to amend sub-section (2) of the said section so as to clarify that in terms of Clause 66 of the Bill seeks to amend section 332 of the Income-tax Act, 2025 relating to provisions of section 286(1) [Table: Sl No. 1 to 4] and sub-section (2), the draft of the application for registration.

proposed order of assessment referred to in section 275 shall be made at any time up to the time limit of assessment, reassessment or recomputation referred in the said table and the It is proposed to amend clause (f) of sub-section (1) of the said section to give reference said sub-section. of “Schedule VII [Table : S. Nos. 17 to 19]”.

This amendment will take effect from 1st April, 2026 and will, accordingly, apply in This amendment will take effect from 1st April, 2026. relation to the tax year 2026-2027 and subsequent years.

Clause 67 of the Bill seeks to amend section 349 of the Income-tax Act, 2025 relating to Clause 64 of the Bill seeks to amend section 295 of the Income-tax Act, 2025 relating return of income under Chapter XVII.

to undisclosed income of any other person.

It is proposed to amend the said section so as to provide the reference of section 263(4) therein.196 196 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— This amendment will take effect from 1st April, 2026.

Clause 68 of the Bill seeks to amend section 351 of the Income-tax Act, 2025 relating to specified violation.

It is proposed to amend clause (b) of sub-section (1) of the said section so as to omit the reference of section 346 and further to make consequential amendment thereto.

This amendment will take effect from 1st April, 2026.

Clause 69 of the Bill seeks to amend section 352 of the Income-tax Act relating to tax on accreted income.

It is proposed to substitute serial number 8 and entries relating thereto of the Table in sub-section (4) of the said section so as to provide that the specified person shall be liable to pay tax on accreted income, where it has merged with, any other __

(a) entity other than a registered non-profit organisation; or

(b) registered non-profit organisation having objects same or similar to it but the said merger does not fulfil such conditions, as may be prescribed; or

This amendment will take effect from 1st April, 2026.

Clause 70 of the Bill seeks to insert a new section 354A in the Income-tax Act, 2025 relating to merger of registered non-profit organisations in certain cases.

It is proposed to insert a new section 354A so as to provide that where any registered non-profit organisation has merged with any other registered non-profit organisation, the provisions of section 352 shall not apply if, —

(a) the other registered nonprofit organisation has same or similar objects; and

(b) the said merger fulfils such conditions as may be provided by rules.

This amendment will take effect from 1st April, 2026.

Clause 71 of the Bill seeks to amend section 379 of the Income-tax Act, 2025 relating to Dispute Resolution Committee.

The said section provides for the constitution of Dispute Resolution Committee to resolve disputes of specified small and medium taxpayers in a cost-effective and expeditious manner.

The said Committee is empowered to reduce or waive penalties and grant immunity from prosecution, subject to certain conditions, with the objective of reducing litigation. The196 197 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 197 This amendment will take effect from 1st April, 2026. section lays down eligibility, procedure, and binding nature of the Dispute Resolution Committee order, promoting voluntary compliance and speedy dispute resolution.

Clause 68 of the Bill seeks to amend section 351 of the Income-tax Act, 2025 relating to specified violation. It is proposed to consequentially amend sub-section (2) of section 379 to give reference of the amendment proposed in section 471 to provide that penalty for under-reporting of It is proposed to amend clause (b) of sub-section (1) of the said section so as to omit income leviable under section 439 imposed in the assessment order may be waived by the the reference of section 346 and further to make consequential amendment thereto. Dispute Resolution Committee.

This amendment will take effect from 1st April, 2026. This amendment will take effect from 1st April, 2026.

Clause 69 of the Bill seeks to amend section 352 of the Income-tax Act relating to tax on Clause 72 seeks to amend section 393 of the Income-tax Act, 2025 relating to tax to be accreted income. deducted at source.

It is proposed to substitute serial number 8 and entries relating thereto of the Table in It is proposed to make consequential amendment in sub-section (1) of the said section sub-section (4) of the said section so as to provide that the specified person shall be liable to regarding cross reference.

pay tax on accreted income, where it has merged with, any other __ Sub-section (4) [Table: Sl. No. 7] of the said section provides for condition where tax

(a) entity other than a registered non-profit organisation; or is not required to be deducted at source in respect of interest on income other than interest on securities referred to in sub-section (1) [Table Sl. No. 5(ii) and 5(iii)] of the said section.

(b) registered non-profit organisation having objects same or similar to it but the said merger does not fulfil such conditions, as may be prescribed; or It is further proposed to amend clause (a)(i) of sub-section (4) [Table: Sl. No. 7. C] so as to provide that interest income paid or credited to any co-operative society engaged in

(c) registered non-profit organisation that does not have same or similar objects. carrying on the business of banking (including a co-operative land mortgage bank) shall be exempt from applicability of deduction of tax at source.

This amendment will take effect from 1st April, 2026. It is also proposed to amend clause (b)(c)(iv) thereof so as to provide for non- applicability of tax to be deducted at source on the payment or credit of interest on the Clause 70 of the Bill seeks to insert a new section 354A in the Income-tax Act, 2025 compensation amount awarded by a Motor Accidents Claims Tribunal, in case of deductee relating to merger of registered non-profit organisations in certain cases. being an individual. For persons other than individuals, the earlier threshold of ₹50000 in the said clause shall continue.

It is proposed to insert a new section 354A so as to provide that where any registered non-profit organisation has merged with any other registered non-profit organisation, the These amendments will take effect from 1st April, 2026 and will, accordingly, apply in provisions of section 352 shall not apply if, — relation to the tax year 2026-2027 and subsequent years.

(a) the other registered nonprofit organisation has same or similar objects; and It is also proposed to insert a new sub-section (6A) in the said section so as to allow depository to accept declaration from the assessee as per the provisions of section 393(6) of

(b) the said merger fulfils such conditions as may be provided by rules. the said Act and provide it to the person responsible for paying income of the nature referred to in 393(1) [Table: Sl. Nos. 4(i), 5(i) and 7] within a fixed timeline. However, this additional This amendment will take effect from 1st April, 2026. option shall be available only to those investors who have held the securities in the depository as defined in section 2(e) of the Depositories Act, 1996 and where the securities are listed in Clause 71 of the Bill seeks to amend section 379 of the Income-tax Act, 2025 relating to a registered stock exchange in India.

Dispute Resolution Committee.

It is also proposed to make consequential amendments in sub-section (7) of the said The said section provides for the constitution of Dispute Resolution Committee to resolve section. disputes of specified small and medium taxpayers in a cost-effective and expeditious manner.

The said Committee is empowered to reduce or waive penalties and grant immunity from These amendments will take effect from 1st April, 2027 and will, accordingly, apply in prosecution, subject to certain conditions, with the objective of reducing litigation. The relation to the tax year 2027-2028 and subsequent years.198 198 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— Clause 73 of the Bill seeks to amend section 394 of the Income-tax Act, 2025 relating to collection of tax at source.

Sub-section (1) of the said section, inter alia, provides that every person shall collect tax at source at the time of debiting of the amount payable or at the time of receipt of such amount from the buyer or licensee or lessee, as the case may be, whichever is earlier, on the receipts specified in that said sub-section.

It is proposed to amend the said sub-section so as to rationalise the rates of tax collected at source for the purpose of sale of––

(i) alcoholic liquor for human consumption;

(ii) tendu leaves;

(iii) scrap; and

(iv) minerals being coal or lignite or iron ore, tax will be required to be collected at source at the rate of 2%.

It is further proposed to amend the said sub-section so as to require that for remittances made under the Reserve Bank of India’s Liberalised Remittance Scheme for the purposes of education or medical treatment, tax will be collected at source at the rate of 2% instead of the existing rate of 5%.

It is also proposed to amend the said sub-section so as to remove the threshold of 10 lakhs on sale of overseas tour program package for applicability of tax collected at source at higher rate of 20% and to require that on sale of overseas tour program package, tax be collected at source at the rate of 2% irrespective of the amount.

These amendments will take effect from 1st April, 2026.

Clause 74 seeks to amend section 395 of the Income-tax Act, 2025 relating to certificates.

Sub-section (1) of the said section provides for issuance of certificate for tax deduction at source at Nil or lower rates.

It is proposed to insert a new sub-section (6) in the said section so as to provide that the application referred to in sub-section (1) of the said section may also be filed before the prescribed income-tax authority, subject to such conditions as may be provided by rules, and such authority on electronic verification of the contents of the application, may either issue a certificate for lower or no deduction or, as the case may be, reject such application for non- fulfillment of the prescribed conditions or on account of the application being incomplete.

This amendment will take effect from 1st April, 2026.

Clause 75 of the Bill seeks to amend section 397 of the Income-tax Act, 2025 relating to compliance and reporting.198 199 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 199 Clause 73 of the Bill seeks to amend section 394 of the Income-tax Act, 2025 relating Clause (a) of sub-section (1) of the said section requires that every person, deducting or to collection of tax at source.

collecting tax shall apply to the Assessing Officer for the allotment of a “tax deduction and collection account number”.

Sub-section (1) of the said section, inter alia, provides that every person shall collect tax at source at the time of debiting of the amount payable or at the time of receipt of such Clause (c) of sub-section (1) of the said section provides that the provisions of clause (c) amount from the buyer or licensee or lessee, as the case may be, whichever is earlier, on shall not apply in certain cases specified therein.

the receipts specified in that said sub-section.

It is proposed to substitute clause (c) of the said sub-section so as to provide that the It is proposed to amend the said sub-section so as to rationalise the rates of tax provisions of clause (a) shall not apply to–– collected at source for the purpose of sale of––

(i) alcoholic liquor for human consumption;

(i) a person in respect of transaction where he is required to deduct tax under section

(ii) tendu leaves;

393(1) [Table: Sl. Nos. 2(i), 3(i) or 6(ii)]; or

(iii) scrap; and

(iv) minerals being coal or lignite or iron ore,

(ii) a person referred to in section 393(4) [Table : Sl. No. 12.C(a)] in respect of tax will be required to be collected at source at the rate of 2%. transaction where he is required to deduct tax on consideration for transfer of a virtual It is further proposed to amend the said sub-section so as to require that for digital asset under section 393(1) [Table : Sl. No. 8(vi)]; or remittances made under the Reserve Bank of India’s Liberalised Remittance Scheme for the purposes of education or medical treatment, tax will be collected at source at the rate

(iii) a resident individual or Hindu undivided family in respect of transaction where of 2% instead of the existing rate of 5%. he is required to deduct tax on any consideration for the transfer of any immovable It is also proposed to amend the said sub-section so as to remove the threshold of 10 property under the provisions of section 393(2) lakhs on sale of overseas tour program package for applicability of tax collected at source [Table : Sl. No. 11]; or at higher rate of 20% and to require that on sale of overseas tour program package, tax be collected at source at the rate of 2% irrespective of the amount.

(iv) a person notified in this regard by the Central Government.

These amendments will take effect from 1st April, 2026.

This amendment will take effect from 1st October, 2026.

Clause 74 seeks to amend section 395 of the Income-tax Act, 2025 relating to Clause 76 of the Bill seeks to amend section 399 of the Income-tax Act, 2025 relating to certificates. processing.

Sub-section (1) of the said section provides for issuance of certificate for tax deduction It is proposed to amend the said section so as to provide the reference of section 427 (1) at source at Nil or lower rates.

and (2).

It is proposed to insert a new sub-section (6) in the said section so as to provide that the This amendment will take effect from 1st April, 2026 and accordingly, will apply in application referred to in sub-section (1) of the said section may also be filed before the relation to the tax year 2026-2027 and subsequent year.

prescribed income-tax authority, subject to such conditions as may be provided by rules, and such authority on electronic verification of the contents of the application, may either issue Clause 77 of the Bill seeks to amend section 400 of the Income-tax Act 2025 relating to a certificate for lower or no deduction or, as the case may be, reject such application for non- power of Central Government to relax provisions of Chapter XIX.

fulfillment of the prescribed conditions or on account of the application being incomplete.

Sub-section (2) of the said section provides that the Board may, with the previous This amendment will take effect from 1st April, 2026. approval of the Central Government, issue guidelines to remove any difficulty arising in giving effect to the provisions of the said Chapter and such guidelines shall be laid before Clause 75 of the Bill seeks to amend section 397 of the Income-tax Act, 2025 relating to each House of Parliament.

compliance and reporting.

It is proposed to amend the said sub-section so as to provide that the guidelines issued shall be binding on the income-tax authorities and on the person liable to deduct or collect income-tax.200 200 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— This amendment will take effect from 1st April, 2026.

Clause 78 of the Bill seeks to amend section 402 of the Income-tax Act, 2025 relating to interpretation for the purposes of Chapter XIX-B.

Clause (27) of the said section provides for the definition of the expression “person responsible for paying”.

Sub-clause (c) of the said clause provides that in case of payment of any sum to a non- resident where such sum represents consideration for the transfer by him of any foreign exchange asset, which is not a short-term capital asset, the authorised person responsible for remitting such sum to the non-resident Indian or for crediting such sum to his Non-resident

(External) Account.

It is proposed to amend the said sub-clause to clarify that the term “authorised person” referred to therein shall have the same meaning as assigned to it in clause (c) of section 2 of the Foreign Exchange Management Act, 1999.

Clause (47) of the said section defines the expression “work”.

It is further proposed to amend the said clause so as to include supply of manpower under the ambit of “work” for the applicability of tax deducted at source as per of section 393(1) [Table: Sl. Nos. 6(i) or 6(ii)].

This amendment will take effect from 1st April, 2026.

Clause 79 of the Bill seeks to amend section 411 of the Income-tax Act, 2025 relating to when tax payable and when assesse deemed in default.

The said section provides that the payment and recovery of tax demand, stating that any amount specified in a notice of demand under section 289 must be paid within thirty days of service of the notice. If the assessee fails to pay within this period, they are deemed to be in default and become liable to interest under sub-section (3) of section 289, along with possible recovery proceedings such as attachment of property. The Assessing Officer may, however, allow payment by instalments or extend the time for payment, subject to conditions, to provide relief in genuine cases.

It is proposed to consequentially amend the sub-section (3) of the said section so as to provide for charging of interest under the said sub-section in respect of any demand raised on account of penalty levied under section 439 only after passing of the order by the Commissioner of Income tax Appellate Tribunal (for appeal against order passed in pursuance of directions issued by the Dispute Resolution Panel), as the case may be.

This amendment will take effect from 1st April, 2026.200 201 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 201 This amendment will take effect from 1st April, 2026. Clause 80 of the Bill seeks to amend section 423 of the Income-tax Act 2025 relating to interest for defaults in furnishing return of income.

Clause 78 of the Bill seeks to amend section 402 of the Income-tax Act, 2025 relating to interpretation for the purposes of Chapter XIX-B. It is proposed to make consequential amendments in order to bring changes proposed in the minimum alternate tax regime by giving reference of section 206(3) and (4) instead of Clause (27) of the said section provides for the definition of the expression “person section 206(1)(m) to (p).

responsible for paying”.

These amendments will take effect from 1st April, 2026 and will, accordingly, apply in Sub-clause (c) of the said clause provides that in case of payment of any sum to a non- relation to the tax year 2026-2027 and subsequent years.

resident where such sum represents consideration for the transfer by him of any foreign exchange asset, which is not a short-term capital asset, the authorised person responsible for Clause 81 of the Bill seeks to amend section 424 of the Income-tax Act 2025 relating remitting such sum to the non-resident Indian or for crediting such sum to his Non-resident to interest for defaults in payment of advance tax.

(External) Account.

It is proposed to make consequential amendments in order to bring changes proposed in It is proposed to amend the said sub-clause to clarify that the term “authorised person” the minimum alternate tax regime by giving reference of section 206(3) and (4) instead of referred to therein shall have the same meaning as assigned to it in clause (c) of section 2 of section 206(1)(m) to (p).

the Foreign Exchange Management Act, 1999.

These amendments will take effect from 1st April, 2026 and will, accordingly, apply in Clause (47) of the said section defines the expression “work”. relation to the tax year 2026-2027 and subsequent years.

It is further proposed to amend the said clause so as to include supply of manpower Clause 82 of the Bill seeks to amend section 425 of the Income-tax Act 2025 relating to under the ambit of “work” for the applicability of tax deducted at source as per of section interest for deferment of advance tax.

393(1) [Table: Sl. Nos. 6(i) or 6(ii)].

It is proposed to make consequential amendments in order to bring changes proposed in This amendment will take effect from 1st April, 2026. the minimum alternate tax regime by giving reference of section 206(3) and (4) instead of

section 206(1)(m) to (p).

Clause 79 of the Bill seeks to amend section 411 of the Income-tax Act, 2025 relating to when tax payable and when assesse deemed in default. These amendments will take effect from 1st April, 2026 and will, accordingly, apply in relation to the tax year 2026-2027 and subsequent years.

The said section provides that the payment and recovery of tax demand, stating that any amount specified in a notice of demand under section 289 must be paid within thirty days of Clause 83 of the Bill seeks to substitute sections 427 and 428 of the Income-tax Act service of the notice. If the assessee fails to pay within this period, they are deemed to be in relating to fee for default in furnishing statements and fee for default in furnishing return of default and become liable to interest under sub-section (3) of section 289, along with possible income.

recovery proceedings such as attachment of property. The Assessing Officer may, however, allow payment by instalments or extend the time for payment, subject to conditions, to The proposed section 427 provides for fee for default in furnishing statements.

provide relief in genuine cases.

Sub-section (1) of the proposed section 427 provides that without prejudice to the It is proposed to consequentially amend the sub-section (3) of the said section so as to provisions of this Act, where any person fails to deliver or cause to be delivered a statement provide for charging of interest under the said sub-section in respect of any demand raised as per section 397(3)(b) within the time as may be provided by rules therein, he shall be on account of penalty levied under section 439 only after passing of the order by the liable to pay by way of fee, a sum of ₹200 for every day for which such failure continues.

Commissioner of Income tax Appellate Tribunal (for appeal against order passed in pursuance of directions issued by the Dispute Resolution Panel), as the case may be. Sub-section (2) of the proposed section 427 provides that the amount of fee referred to in sub-section (1) shall not exceed the amount of tax deductible or collectible and be paid before This amendment will take effect from 1st April, 2026. delivering or causing to be delivered the statement, as per sub-section (1).202 202 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— Sub-section (3) of the proposed section 427 provides that without prejudice to the provisions of this Act, if any person who is required to furnish a statement of financial transaction or reportable account under section 508(1), fails to furnish such statement within the time as may be provide by rules under section 508(2), he shall be liable to pay by way of fee, a sum of ₹ 200 for every day for which such failure continues and such fee shall not exceed a sum of ₹ 100000.

The proposed section 428 provides for fee for default in furnishing return of income, audited accounts and reports.

Clause (a) of the proposed section 428 provides that where any person required to furnish a return of income under section 263, fails to do so within the due date as specified in sub-

section (1) of said section, he shall be liable to pay by way of fee, a sum of ₹ 1000, if the total income of such person does not exceed ₹ 500000 and a sum of ₹ 5000, in any other case.

Clause (b) of the proposed section 428 provides that where any person furnishes a return of income under section 263(5) beyond nine months from the end of relevant tax year, he shall liable to pay by way of fee, a sum of ₹ 1000, if the total income of such person does not exceed ₹ 500000 and a sum of ₹ 5000, in any other case.

Clause (c) of the proposed section 428 provides that where any person fails to get his accounts audited for any tax year or years and furnish the report of such audit as required under section 63, he shall be liable to pay by way of fee, a sum of ₹ 75000 for a delay upto one month for which such failure continue and a sum of ₹ 150000 thereafter.

Clause (d) of the proposed section 428 provides that where any person fails to furnish a report from an accountant as required by section 172, he shall be liable to pay by way of fee, a sum of ₹ 50000 for a delay up to one month for which such failure continues and a sum of ₹ 100000 thereafter.

These amendments will take effect from 1st April, 2026 and will, accordingly, apply in relation to the tax year 2026-2027 and subsequent years.

Clause 84 of the Bill seeks to amend section 439 of the Income-tax Act, 2025 relating to penalty for under-reporting and misreporting of income.

Sub-section (11) of the said section provides the categories of cases of misreporting of income referred to in sub-section (10).

It is proposed to amend the said sub-section (11) so as to include the income referred to in section 195(1)(b) within the ambit of income referred to in sub-section (10).

It is further proposed to insert a new sub-section (13A) so as to provide that where additional income-tax is paid in accordance with section 267(5)(ii), the income on which such additional income-tax is paid shall not form the basis of imposition of penalty.203 202 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 203 Sub-section (3) of the proposed section 427 provides that without prejudice to the These amendments will take effect from 1st April, 2026 and will, accordingly, apply in provisions of this Act, if any person who is required to furnish a statement of financial relation to the tax year 2026-2027 and subsequent years.

transaction or reportable account under section 508(1), fails to furnish such statement within the time as may be provide by rules under section 508(2), he shall be liable to pay by way of Clause 85 of the Bill seeks to amend section 440 of the Income-tax Act, 2025 relating fee, a sum of ₹ 200 for every day for which such failure continues and such fee shall not to immunity from imposition of penalty, etc.

exceed a sum of ₹ 100000.

The said section, inter alia, provides the procedure for granting immunity by the The proposed section 428 provides for fee for default in furnishing return of income, Assessing Officer from imposition of penalty or initiation of prosecution, if assessee fulfils audited accounts and reports. certain conditions specified therein.

Clause (a) of the proposed section 428 provides that where any person required to furnish Under the said section immunity is granted only in the cases of under-reporting of a return of income under section 263, fails to do so within the due date as specified in sub- income and not in the case of misreporting of income.

section (1) of said section, he shall be liable to pay by way of fee, a sum of ₹ 1000, if the total income of such person does not exceed ₹ 500000 and a sum of ₹ 5000, in any other It is proposed to amend the said section by substituting sub-sections (1) to (4) thereof case. so as to extend such immunity–– Clause (b) of the proposed section 428 provides that where any person furnishes a return (i) for misreporting of income [under section 439 (11) (a) to (f)], on payment of income under section 263(5) beyond nine months from the end of relevant tax year, he of the tax and interest payable as per the order of assessment or reassessment under shall liable to pay by way of fee, a sum of ₹ 1000, if the total income of such person does not section 270(10) or section 279, along with additional income-tax amounting to 100% exceed ₹ 500000 and a sum of ₹ 5000, in any other case. of the amount of tax payable on under-reported income, in lieu of penalty and no appeal has been filed;

Clause (c) of the proposed section 428 provides that where any person fails to get his accounts audited for any tax year or years and furnish the report of such audit as required (ii) for income referred to in sections 102 to 106 [under section 439 (11) (g)], under section 63, he shall be liable to pay by way of fee, a sum of ₹ 75000 for a delay upto on payment of the tax and interest payable as per the order of assessment or one month for which such failure continue and a sum of ₹ 150000 thereafter. reassessment under section 270(10) or section 279, along with additional income- tax amounting to 120% of the amount of tax payable on under-reported income, in Clause (d) of the proposed section 428 provides that where any person fails to furnish a lieu of penalty and no appeal has been filed.

report from an accountant as required by section 172, he shall be liable to pay by way of fee, a sum of ₹ 50000 for a delay up to one month for which such failure continues and a sum of These amendments will take effect from 1st April, 2026 and will, accordingly, apply ₹ 100000 thereafter. in relation to the tax year 2026-2027 and subsequent years.

These amendments will take effect from 1st April, 2026 and will, accordingly, apply in Clause 86 of the Bill seeks to omit section 443 of the Income-tax Act, 2025 relating to relation to the tax year 2026-2027 and subsequent years. penalty in respect of certain income.

Clause 84 of the Bill seeks to amend section 439 of the Income-tax Act, 2025 relating to It is proposed to omit the said as a consequential amendment made in section 439 of the penalty for under-reporting and misreporting of income. said Act.

Sub-section (11) of the said section provides the categories of cases of misreporting of This amendment will take effect from 1st April, 2026 and will, accordingly, apply in income referred to in sub-section (10). relation to the tax year 2026-2027 and subsequent years.

It is proposed to amend the said sub-section (11) so as to include the income referred to Clause 87 of the Bill seeks to substitute section 446 of the Income-tax Act, 2025 relating in section 195(1)(b) within the ambit of income referred to in sub-section (10). to failure to get accounts audited.

It is further proposed to insert a new sub-section (13A) so as to provide that where The proposed new section provides for penalty for failure to furnish information or for additional income-tax is paid in accordance with section 267(5)(ii), the income on which furnishing inaccurate information on transaction of crypto-asset.

such additional income-tax is paid shall not form the basis of imposition of penalty.204 204 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— Sub-section (1) of the proposed section seeks to provide that if any person who is required to furnish a statement in respect of transaction of crypto-asset under section 509(1), fails to furnish such statement within the time as provided by rules under the said section, the income-tax authority as may be provided by rules under that section may impose on him, a penalty of ₹ 200 for every day during which such failure continues.

Sub-section (2) of the proposed new section seeks to provide that the said income-tax authority may impose a penalty of ₹ 50000 on a person required to furnish a statement under sub-section (1) of the section 509, if such person provides inaccurate information in the statement and fails to remove such inaccuracy as per section 509(4) or fails to comply with due diligence the requirement under section 509(5).

This amendment will take effect from 1st April, 2026.

Clause 88 of the Bill seeks to omit section 447 of the Income-tax Act relating to penalty for failure to furnish report under section 172.

This amendment will take effect from 1st April, 2026 and will, accordingly, apply in relation to the tax year 2026-2027 and subsequent years.

Clause 89 of the Bill seeks to substitute section for 454 of the Income-tax Act, 2025 relating to penalty for failure to furnish statement or reportable account.

The proposed section provides Penalty for failure to furnish statement of financial transaction or reportable account after notice.

The said section provides that where any person, who is required to furnish a statement of financial transaction or reportable account under section 508(1), fails to furnish such statement or reportable account within the period specified in the notice issued under section 508(7), the income-tax authority prescribed under section 508(1) may impose on him, a penalty of ₹ 1000 for every day for which such failure continues, beginning from the day immediately after the time specified in such notice for furnishing such statement or reportable account expires and such penalty shall not exceed ₹ 100000.

This amendment will take effect from 1st April, 2026 and accordingly, will apply in relation to the tax year 2026-2027 and subsequent year.

Clause 90 of the Bill seeks to amend section 466 of the Income-tax Act, 2025 relating to penalty for failure to comply with the provisions of section 254.

Section 254 of the said Act provides the power to the income-tax authorities to collect information from the premises where business or profession is carried out, by directing the proprietor or employee or any other person, who may, at that time and place, be attending in any manner to, or helping in, or carrying on of such business or profession, to furnish certain information as authorised.204 205 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 205 Sub-section (1) of the proposed section seeks to provide that if any person who is required Further, the provisions of section 466 of the said Act provide for penalty on such to furnish a statement in respect of transaction of crypto-asset under section 509(1), fails to persons who fail to comply with the provisions of section 254, that is power to collect furnish such statement within the time as provided by rules under the said section, the information, and does not furnish the requisite information to the authorised income-tax income-tax authority as may be provided by rules under that section may impose on him, a authorities. The said section further empowers to the Joint Commissioner, Deputy Director penalty of ₹ 200 for every day during which such failure continues. or Assistant Director or the Assessing officer to impose maximum penalty amounting to ₹1000.

Sub-section (2) of the proposed new section seeks to provide that the said income-tax authority may impose a penalty of ₹ 50000 on a person required to furnish a statement under It is proposed to amend the said section so as to enhance the maximum amount of sub-section (1) of the section 509, if such person provides inaccurate information in the penalty from existing ₹ 1000 to ₹ 25000.

statement and fails to remove such inaccuracy as per section 509(4) or fails to comply with due diligence the requirement under section 509(5). This amendment will take effect from 1st April, 2026.

This amendment will take effect from 1st April, 2026. Clause 91 of the Bill seeks to amend section 470 of the Income-tax Act, 2025 relating to penalty not to be imposed in certain cases.

Clause 88 of the Bill seeks to omit section 447 of the Income-tax Act relating to penalty for failure to furnish report under section 172. It is proposed to omit the reference of section 447.

This amendment will take effect from 1st April, 2026 and will, accordingly, apply in This amendment will take effect from 1st April, 2026 and accordingly, will apply in relation to the tax year 2026-2027 and subsequent years. relation to the tax year 2026-2027 and subsequent year.

Clause 89 of the Bill seeks to substitute section for 454 of the Income-tax Act, 2025 relating to penalty for failure to furnish statement or reportable account. Clause 92 of the Bill seeks to amend section 471 of the Income-tax Act, 2025 relating to procedure for imposition of penalty.

The proposed section provides Penalty for failure to furnish statement of financial transaction or reportable account after notice. The said section provides the procedure for imposing penalties and mandates that no penalty shall be levied unless the assessee is given a reasonable opportunity of being heard.

The said section provides that where any person, who is required to furnish a statement It requires the Assessing Officer to issue a show-cause notice for which the penalty is of financial transaction or reportable account under section 508(1), fails to furnish such proposed, and in certain cases, prior approval of higher authorities is necessary before statement or reportable account within the period specified in the notice issued under section imposing the penalty. The section ensures adherence to the principles of natural justice and 508(7), the income-tax authority prescribed under section 508(1) may impose on him, a aims to prevent arbitrary or invalid penalty proceedings.

penalty of ₹ 1000 for every day for which such failure continues, beginning from the day immediately after the time specified in such notice for furnishing such statement or It is proposed to amend the said section so as to provide that penalty for under-reporting reportable account expires and such penalty shall not exceed ₹ 100000. of income leviable under section 439 shall be imposed in the assessment order made on or after 1st April, 2027.

This amendment will take effect from 1st April, 2026 and accordingly, will apply in relation to the tax year 2026-2027 and subsequent year. This amendment will take effect from 1st April, 2026.

Clause 90 of the Bill seeks to amend section 466 of the Income-tax Act, 2025 relating Clause 93 of the Bill seeks to amend section 473 of the Income-tax Act, 2025 relating to penalty for failure to comply with the provisions of section 254. to contravention of order made under section 247.

Section 254 of the said Act provides the power to the income-tax authorities to collect The said section, inter alia, provides that whoever contravenes any order referred to in information from the premises where business or profession is carried out, by directing the section 247(4) shall be punishable with rigorous imprisonment which may extend to two proprietor or employee or any other person, who may, at that time and place, be attending in years and shall also be liable to fine.

any manner to, or helping in, or carrying on of such business or profession, to furnish certain information as authorised.206 206 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— It is proposed to amend said section so as to substitute “rigorous imprisonment for a term which may extend to two years and shall also be liable to fine” with “simple imprisonment up to two years and fine”.

This amendment will take effect from 1st April, 2026.

Clause 94 of the Bill seeks to amend section 474 of the Income-tax Act, 2025 relating to failure to pay tax collected at source.

The said section, inter alia, provides that if a person, who is required to afford the authorised officer with the necessary facility to inspect the books of account or other documents, under section 247(1)(ii), fails to do so, he shall be punishable with rigorous imprisonment for a term which may extend to two years and shall also be liable to fine.

It is proposed to amend said section so as to substitute the “rigorous imprisonment for a term which may extend to two years and shall also be liable to fine” with “simple imprisonment up to six months or with fine or with both”.

This amendment will take effect from 1st April, 2026.

Clause 95 of the Bill seeks to amend section 475 of the Income-tax Act, 2025 relating to removal, concealment, transfer or delivery of property to prevent tax recovery.

The said section, inter alia, provides that whoever, fraudulently removes, conceals, transfers or delivers to any person, any property or any interest therein, with the intent to prevent such property or interest therein from being taken in execution of a certificate drawn under section 413, shall be punishable with rigorous imprisonment for a term which may extend to two years and shall also be liable to fine.

It is proposed to amend said section so as to substitute “rigorous imprisonment for a term which may extend to two years and shall also be liable to fine” with “simple imprisonment up to two years and fine”.

This amendment will take effect from 1st April, 2026.

Clause 96 of the Bill seeks to amend section 476 of the Income-tax Act, 2025 relating to failure to pay tax to credit of Central Government under Chapter XIX-B.

The said section, inter alia, provides that if a person fails to pay the tax deducted at source into the account of Central Government or fails to pay tax or ensure payment of tax to the credit of Central Government in certain cases under the provision of section 393 of the Act.

It is proposed to amend sub-section (1) of said section so as to provide that if a person fails to pay tax deducted at source or ensure payment of tax in case of winnings from online games under section 476(1)(b)(i) and consideration from virtual digital asset under section206 207 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 207 It is proposed to amend said section so as to substitute “rigorous imprisonment for a 476(1)(b)(ii) excluding such winnings and such consideration which are wholly in kind and term which may extend to two years and shall also be liable to fine” with “simple shall be punishable –– imprisonment up to two years and fine”.

(i) with simple imprisonment for a term up to two years, or with fine, or with both, This amendment will take effect from 1st April, 2026. in a case where amount of such tax exceeds fifty lakh rupees;

Clause 94 of the Bill seeks to amend section 474 of the Income-tax Act, 2025 relating to (ii) with simple imprisonment for a term up to six months, or with fine, or with failure to pay tax collected at source. both, in a case where amount of such tax exceeds ten lakh rupees but does not exceed fifty lakh rupees;

The said section, inter alia, provides that if a person, who is required to afford the authorised officer with the necessary facility to inspect the books of account or other (iii) with fine, in any other case.

documents, under section 247(1)(ii), fails to do so, he shall be punishable with rigorous imprisonment for a term which may extend to two years and shall also be liable to fine. This amendment will take effect from 1st April, 2026.

It is proposed to amend said section so as to substitute the “rigorous imprisonment for a Clause 97 of the Bill seeks to amend section 477 of the Income-tax Act, 2025 relating to term which may extend to two years and shall also be liable to fine” with “simple failure to pay tax collected at source.

imprisonment up to six months or with fine or with both”.

The said section ,inter alia, that if a person fails to pay the tax collected by him to the This amendment will take effect from 1st April, 2026. credit of the Central Government, as required under section 397(3)(a), he shall be punishable with rigorous imprisonment for a term which shall not be less than three months but which Clause 95 of the Bill seeks to amend section 475 of the Income-tax Act, 2025 relating may extend to seven years, and with fine.

to removal, concealment, transfer or delivery of property to prevent tax recovery.

It is proposed to amend sub-section (1) of the said section so as to provide that if a person The said section, inter alia, provides that whoever, fraudulently removes, conceals, fails to pay the tax collected by him to the credit of the central government as required under transfers or delivers to any person, any property or any interest therein, with the intent to section 397(3)(a), he shall be punishable–– prevent such property or interest therein from being taken in execution of a certificate drawn under section 413, shall be punishable with rigorous imprisonment for a term which may (a) with simple imprisonment for a term up to two years, or with fine, or with both, extend to two years and shall also be liable to fine. in a case where amount of such tax exceeds fifty lakh rupees;

It is proposed to amend said section so as to substitute “rigorous imprisonment for a (b) with simple imprisonment for a term up to six months or with fine, or with both, term which may extend to two years and shall also be liable to fine” with “simple in a case where amount of such tax exceeds ten lakh rupees but does not exceed fifty imprisonment up to two years and fine”. lakh rupees;

This amendment will take effect from 1st April, 2026. (c) with fine, in any other case.

Clause 96 of the Bill seeks to amend section 476 of the Income-tax Act, 2025 relating to This amendment will take effect from 1st April, 2026. failure to pay tax to credit of Central Government under Chapter XIX-B.

Clause 98 of the Bill seeks to substitute section 478 of the Income-tax Act, 2025 relating The said section, inter alia, provides that if a person fails to pay the tax deducted at source to wilful attempt to evade tax, etc.

into the account of Central Government or fails to pay tax or ensure payment of tax to the credit of Central Government in certain cases under the provision of section 393 of the Act. Sub-section (1) of the said section,inter alia, provides that if a person wilfully attempts in any manner whatsoever to evade any tax, penalty or interest chargeable or imposable, or It is proposed to amend sub-section (1) of said section so as to provide that if a person under-reports his income, under this Act in a case, where the amount sought to be evaded or fails to pay tax deducted at source or ensure payment of tax in case of winnings from online tax on under-reported income exceeds twenty-five lakh rupees, with rigorous imprisonment games under section 476(1)(b)(i) and consideration from virtual digital asset under section for a term which shall not be less than six months but which may extend to seven years, and208 208 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— with fine and in any other case, with rigorous imprisonment for a term which shall not be less than three months but which may extend to two years, and with fine.

Sub-section (2) of the said section, inter alia, provides that if a person wilfully attempts in any manner to evade the payment of any tax, penalty or interest under this Act, he shall be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to two years and shall, in the discretion of the court, also be liable to fine.

(a) with simple imprisonment for a term up to two years, or with fine, or with both, in a case where the amount sought to be evaded or tax on under-reported income exceeds fifty lakh rupees;

(b) with simple imprisonment for a term up to six months, or with fine, or with both, in a case where the amount sought to be evaded or tax on under-reported income exceeds ten lakh rupees but does not exceed fifty lakh rupees;

It is proposed to substitute sub-section (2) of the said section so as to provide that if a person wilfully attempts in any manner to evade payment of tax of penalty under this Act shall be punishable––

(a) with simple imprisonment for a term up to two years, or with fine, or with both, in a case where the amount sought to be evaded exceeds fifty lakh rupees;

(b) with simple imprisonment for a term up to six months, or with fine, or with both, in a case where the amount sought to be evaded exceeds ten lakh rupees but does not exceed fifty lakh rupees;

This amendment will take effect from 1st April, 2026.

Clause 99 of the Bill seeks to amend section 479 of the Income-tax Act, 2025 relating to failure to furnish returns of income.

The said section,inter alia, provides that if a person wilfully fails to furnish in due time the return of income, which is required to be furnished under section 263(1), or by notice given under sections 268(1) or 280, he shall be punishable,— (a) in a case, where the amount of tax, which would have been evaded if the failure had not been discovered, exceeds twenty- five lakh rupees, with rigorous imprisonment for a term which shall not be less than six208 209 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 209 with fine and in any other case, with rigorous imprisonment for a term which shall not be months but which may extend to seven years, and with fine; (b) in any other case, with less than three months but which may extend to two years, and with fine. imprisonment for a term which shall not be less than three months but which may extend to two years and with fine.

Sub-section (2) of the said section, inter alia, provides that if a person wilfully attempts in any manner to evade the payment of any tax, penalty or interest under this Act, he shall It is proposed to amend the said section so as to provide that–– be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to two years and shall, in the discretion of the court, also be (a) with simple imprisonment for a term up to two years, or with fine, or with both, liable to fine. in a case where the amount of tax, which would have been evaded if the failure had not been discovered, exceeds fifty lakh rupees;

It is proposed to amend the said sub-section (1) of the said section so as to provide that if a person wilfully attempts in any manner whatsoever to evade any tax, penalty or interest (b) with simple imprisonment for a term up to six months, or with fine, or with both, chargeable or imposable, or under-reports his income, under this Act, he shall be punishable– in a case where the amount of tax, which would have been evaded if the failure had not – been discovered, exceeds ten lakh rupees but does not exceed fifty lakh rupees;

(a) with simple imprisonment for a term up to two years, or with fine, or with both, in a (c) with fine, in any other case. case where the amount sought to be evaded or tax on under-reported income exceeds fifty lakh rupees; This amendment will take effect from 1st April, 2026.

(b) with simple imprisonment for a term up to six months, or with fine, or with both, in a Clause 100 of the Bill seeks to substitute sections 480 and 481 of the Income-tax Act, case where the amount sought to be evaded or tax on under-reported income exceeds ten lakh 2025 relating to failure to furnish return of income in search cases and failure to produce rupees but does not exceed fifty lakh rupees; accounts and documents, respectively, with new sections.

It is proposed to substitute the said section 480 so as to decriminalize the offenses It is proposed to substitute sub-section (2) of the said section so as to provide that if a thereunder to provide that if a person wilfully fails to furnish in due time the return of income, person wilfully attempts in any manner to evade payment of tax of penalty under this Act setting forth his undisclosed income for the block period, which is required to be furnished shall be punishable–– by notice given under section 294(1) (a), he shall be punishable––

(a) with simple imprisonment for a term up to two years, or with fine, or with both, in a (a) with simple imprisonment for a term up to two years, or with fine, or with both, case where the amount sought to be evaded exceeds fifty lakh rupees; in a case where the amount of tax exceeds fifty lakh rupees;

(b) with simple imprisonment for a term up to six months, or with fine, or with both, in a (b) with simple imprisonment up to six months, or with fine, or with both, in a case case where the amount sought to be evaded exceeds ten lakh rupees but does not exceed fifty where the amount of tax, exceeds ten lakh rupees but does not exceed fifty lakh rupees;

lakh rupees;

It is proposed to substitute the section 481 of the said so as to provide that – This amendment will take effect from 1st April, 2026.

(a) in the case where a person wilfully fails to produce, or cause to be produced, the Clause 99 of the Bill seeks to amend section 479 of the Income-tax Act, 2025 relating to accounts and documents as are referred to in the notice served on him under section failure to furnish returns of income. 268(1) on or before the date specified in such notice, this provision under section 481 is proposed to be fully decriminalised.

The said section,inter alia, provides that if a person wilfully fails to furnish in due time the return of income, which is required to be furnished under section 263(1), or by notice (b) in the case where a person wilfully fails to comply with a direction issued to him given under sections 268(1) or 280, he shall be punishable,— (a) in a case, where the amount under section 268(5), the punishment is proposed to be changed from its current “rigorous of tax, which would have been evaded if the failure had not been discovered, exceeds twenty- imprisonment for a term which may extend to one year and with fine” to simple five lakh rupees, with rigorous imprisonment for a term which shall not be less than six imprisonment for a term up to six months, or with fine, or with both.210 210 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— These amendments will take effect from 1st April, 2026.

Clause 101 of the Bill seeks to amend section 482 of the Income-tax Act, 2025 relating to false statement in verification, etc.

The said section, inter alia, provides that if a person makes a statement in any verification under this Act or under any rule made thereunder, or delivers an account or statement which is false, and which he either knows or believes to be false, or does not believe to be true, he shall be punishable,— (a) in a case, where the amount of tax, which would have been evaded if the statement or account had been accepted as true, exceeds twenty-five lakh rupees, with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years, and with fine; (b) in any other case, with rigorous imprisonment for a term which shall not be less than three months but which may extend to two years, and with fine.

It is proposed to amend said section so as to change the punishment thereunder as below:

(a) with simple imprisonment for a term up to two years, or with fine, or with both, in a case where the amount of tax, which would have been evaded if the statement or account had been accepted as true, exceeds fifty lakh rupees;

(b) with simple imprisonment for a term up to six months, or with fine, or with both, in a case where the amount of tax, which would have been evaded if the statement or account had been accepted as true, exceeds ten lakh rupees but does not exceed fifty lakh rupees;

This amendment will take effect from 1st April, 2026.

Clause 102 of the Bill seeks to amend section 483 of the Income-tax Act, 2025 relating to falsification of books of account or document, etc.

Sub-section (1) of the said section,inter alia, provides that if any person (herein referred to as the first person) wilfully and with intent to enable any other person (herein referred to as the second person) to evade any tax or interest or penalty chargeable and imposable under this Act, makes or causes to be made any entry or statement which is false and which the first person either knows to be false or does not believe to be true, in any books of account or other document relevant to or useful in any proceedings against the first person or the second person, under this Act, the first person shall be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to two years and with fine.210 211 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 211 It is proposed to amend the said sub-section to substitute “rigorous imprisonment for a These amendments will take effect from 1st April, 2026.

term which shall not be less than three months but which may extend to two years and with fine” with “simple imprisonment for a term up to two years and shall also be liable to fine”.

Clause 101 of the Bill seeks to amend section 482 of the Income-tax Act, 2025 relating This amendment will take effect from 1st April, 2026. to false statement in verification, etc.

Clause 103 of the Bill seeks to amend section 484 of the Income-tax Act, 2025 relating The said section, inter alia, provides that if a person makes a statement in any to abetment of false return, etc.

verification under this Act or under any rule made thereunder, or delivers an account or statement which is false, and which he either knows or believes to be false, or does not The said section,inter alia, provides that if a person abets or induces in any manner believe to be true, he shall be punishable,— (a) in a case, where the amount of tax, which another person–– (a) to make and deliver an account or a statement or declaration relating to would have been evaded if the statement or account had been accepted as true, exceeds any income chargeable to tax which is false and which he either knows to be false or does twenty-five lakh rupees, with rigorous imprisonment for a term which shall not be less than not believe to be true; or (b) to commit an offence under section 478(1), he shall be six months but which may extend to seven years, and with fine; (b) in any other case, with punishable,— (i) in a case, where the amount of tax, penalty or interest which would have rigorous imprisonment for a term which shall not be less than three months but which may been evaded, if the declaration, account or statement had been accepted as true, or which is extend to two years, and with fine.

wilfully attempted to be evaded, exceeds twenty-five lakh rupees, with rigorous imprisonment for a term which shall not be less than six months but which may extend to

It is proposed to amend said section so as to change the punishment thereunder as below: seven years, and with fine; (ii) in any other case, with rigorous imprisonment for a term which shall not be less than three months but which may extend to two years, and with fine.

(a) with simple imprisonment for a term up to two years, or with fine, or with both, in a case where the amount of tax, which would have been evaded if the statement or It is proposed to amend the said section to change the punishment thereunder in the account had been accepted as true, exceeds fifty lakh rupees;

manner given below:

(b) with simple imprisonment for a term up to six months, or with fine, or with both,

(i) with simple imprisonment for a term up to two years, or with fine, or with both, in a case where the amount of tax, which would have been evaded if the statement or in a case where the amount of tax, penalty or interest which would have been evaded, if account had been accepted as true, exceeds ten lakh rupees but does not exceed fifty the declaration, account or statement had been accepted as true, or which is wilfully lakh rupees;

attempted to be evaded, exceeds fifty lakh rupees;

(ii) with simple imprisonment for a term up to six months, or with fine, or with both, in a case where the amount of tax, penalty or interest which would have been evaded, if This amendment will take effect from 1st April, 2026.

the declaration, account or statement had been accepted as true, or which is wilfully attempted to be evaded, exceeds ten lakh rupees but does not exceed fifty lakh rupees;

Clause 102 of the Bill seeks to amend section 483 of the Income-tax Act, 2025 relating to falsification of books of account or document, etc.

(iii) with fine, in any other case.

Sub-section (1) of the said section,inter alia, provides that if any person (herein referred This amendment will take effect from 1st April, 2026. to as the first person) wilfully and with intent to enable any other person (herein referred to as the second person) to evade any tax or interest or penalty chargeable and imposable under Clause 104 of the Bill seeks to amend section 485 of the Income-tax Act, 2025 relating this Act, makes or causes to be made any entry or statement which is false and which the to punishment for second and subsequent offences.

first person either knows to be false or does not believe to be true, in any books of account or other document relevant to or useful in any proceedings against the first person or the The said section, inter alia, provides that if any person convicted of an offence under second person, under this Act, the first person shall be punishable with rigorous sections 476, 477, 478(1), 479, 480, 482 or 484 is again convicted of an offence under any imprisonment for a term which shall not be less than three months but which may extend to of the said sections, he shall be punishable for the second and for every subsequent offence two years and with fine.

with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years, and with fine.212 212 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— It is proposed to amend said section to substitute “rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years, and with fine” with “simple imprisonment for a term which shall not be less than six months but which may extend to three years and shall also be liable to fine”.

This amendment will take effect from 1st April, 2026.

Clause 105 of the Bill seeks to amend section 494 of the Income-tax Act, 2025 relating to disclosure of particulars by public servants.

Sub-section (1) of the said section provides that a public servant, who furnishes any information or produces any document in contravention of the provisions of section 258(3), shall be punishable with imprisonment which may extend to six months, and shall also be liable to fine.

It is proposed to amend the said section to substitute “imprisonment which may extend to six months, and shall also be liable to fine” with “simple imprisonment up to one month, or with fine, or with both”.

This amendment will take effect from 1st April, 2026.

Clause 106 of the Bill seeks to amend section 522 of the Income-tax Act, 2025 relating to return of income, etc., not to be invalid on certain grounds.

The said section, inter alia, provides that no return of income, assessment, notice, summons or other proceeding in pursuance of any of the provisions of the said Act shall be invalid or shall be deemed to be invalid merely by reason of any mistake, defect or omission in such return of income, assessment, notice, summons or other proceeding, if such return of income, assessment, notice, summons or other proceeding is in substance and effect in conformity with or according to the intent and purpose of the said Act.

It is proposed to insert sub-section (2) in the said section so as to provide that no assessment in pursuance of any of the provisions of the Income-tax Act, 2025 shall be invalid on the ground of any mistake, defect or omission in respect of quoting of a computer- generated Document Identification Number, if the assessment order is referenced by such number in any manner.

This amendment will take effect with effect from 1st April, 2026.

Clause 107 of the Bill seeks to amend section 536 of the Income-tax Act, 2025 relating to repeal and savings.

The said section provides for the circumstances where deduction has been allowed under the repealed Income-tax Act, 1961, but on violation of the conditions mentioned in the respective sections of the said Act, it will become income after the enactment of the Income- tax Act, 2025.212 213 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 213 It is proposed to amend said section to substitute “rigorous imprisonment for a term which It is proposed to substitute clause (h) of sub-section (2) of the said section so as to provide shall not be less than six months but which may extend to seven years, and with fine” with that where any sum has been allowed as a deduction or has not been included in the total “simple imprisonment for a term which shall not be less than six months but which may income of any person, either on account of fulfillment of certain conditions or for any other extend to three years and shall also be liable to fine”. reason, for any tax year beginning before the 1st April, 2026, and such sum was required to be included in the total income of any subsequent tax year including beginning on or after This amendment will take effect from 1st April, 2026. the 1st April, 2026 under the repealed Income-tax Act, if it had not been so repealed, on account of violation of such conditions or for any other reason, then such sum shall be–– Clause 105 of the Bill seeks to amend section 494 of the Income-tax Act, 2025 relating to disclosure of particulars by public servants. (i) deemed to be the income of such subsequent tax year; and Sub-section (1) of the said section provides that a public servant, who furnishes any (ii) included in the total income of the said person under the same head of income as it information or produces any document in contravention of the provisions of section 258(3), would have been included under the repealed Income-tax Act.

shall be punishable with imprisonment which may extend to six months, and shall also be liable to fine. It is further proposed to substitute sub-clauses (i) and (ii) of clause (l) of sub-section (2) of the said section so as to include reference of section 206(3) or (4).

It is proposed to amend the said section to substitute “imprisonment which may extend to six months, and shall also be liable to fine” with “simple imprisonment up to one month, These amendments will take effect from 1st April, 2026 and will, accordingly, apply in or with fine, or with both”. relation to the tax year 2026-2027 and subsequent years.

This amendment will take effect from 1st April, 2026. Clause 108 of the Bill seeks to amend Schedule III to the Income-tax Act, 2025 relating to income not to be included in total income of eligible persons.

Clause 106 of the Bill seeks to amend section 522 of the Income-tax Act, 2025 relating to return of income, etc., not to be invalid on certain grounds. It is proposed to amend the Table in the said Schedule so as to provide an express statutory exemption in respect of disability pension, including both the service element and The said section, inter alia, provides that no return of income, assessment, notice, the disability element, in cases where an individual has been invalided out of service on summons or other proceeding in pursuance of any of the provisions of the said Act shall be account of such disability attributable to, or aggravated by, such service. However, the said invalid or shall be deemed to be invalid merely by reason of any mistake, defect or omission exemption shall not be available where the individual has retired from service on in such return of income, assessment, notice, summons or other proceeding, if such return of superannuation or otherwise.

income, assessment, notice, summons or other proceeding is in substance and effect in conformity with or according to the intent and purpose of the said Act. It is further proposed to amend the Table in the said Schedule so as to provide exemption It is proposed to insert sub-section (2) in the said section so as to provide that no to an individual or his legal heir, on any interest awarded on compensation under the Motor assessment in pursuance of any of the provisions of the Income-tax Act, 2025 shall be invalid Vehicles Act, 1988.

on the ground of any mistake, defect or omission in respect of quoting of a computer- generated Document Identification Number, if the assessment order is referenced by such It is proposed to amend the said Schedule so as to provide exemption on any income in number in any manner. respect of any award or agreement made on account of compulsory acquisition of any land, carried out on or after the 1st April, 2026 under the Right to Fair Compensation and This amendment will take effect with effect from 1st April, 2026. Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (other than the award or agreement made under section 46 of said Act).

Clause 107 of the Bill seeks to amend section 536 of the Income-tax Act, 2025 relating to repeal and savings. These amendments will take effect from 1st April, 2026 and will, accordingly, apply in relation to the tax year 2026-2027 and subsequent years.

The said section provides for the circumstances where deduction has been allowed under the repealed Income-tax Act, 1961, but on violation of the conditions mentioned in the Clause 109 of the Bill seeks to amend Schedule IV of the Income-tax Act, 2025 relating respective sections of the said Act, it will become income after the enactment of the Income- to income not to be included in total income of eligible non-residents, foreign companies and tax Act, 2025. other such persons.214 214 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— Schedule IV to the said Act specifies the eligible income, which shall not be included in the total income of the eligible non-residents, foreign companies and other such persons.

It is proposed to amend the said Schedule to provide exemption to a foreign company on income arising on account of providing capital goods, equipment or tooling to a contract manufacturer, being a company resident in India, who is located in a custom bonded area, that is, a warehouse referred to in section 65 of the Customs Act, 1962 and produces electronic goods on behalf of the foreign company for a consideration. The said exemption shall be provided up to the tax year 2030-2031.

It is further proposed to amend the said Schedule so as to provide exemption to an individual, being a non-resident for a period of five consecutive tax years immediately preceding the tax year during which he visits India for the first time for rendering services in India in connection with any scheme as may be notified by the Central Government, on any income which accrues or arises outside India, and is not deemed to accrue or arise in India, for five consecutive tax years commencing from the first tax year during which he visits India, if such person renders any service in India in connection with any scheme as may be notified by the Central Government and fulfils such other conditions, as may be provided by rules.

It is also proposed to amend the said Schedule so as to provide exemption to a foreign company, on any income accruing or arising in India or deemed to accrue or arise in India by way of procuring data centre services from a specified data centre, for a period up to tax year ending on 31st March, 2047, subject to the conditions specified therein.

It is also proposed to insert Note 3 so as to define the expressions “data centre”, “data centre services” and “specified data centre” for the purposes of the said provision in serial number 13C.

These amendments will take effect from 1st April, 2026 and will, accordingly, apply in relation to the tax year 2026-2027 and subsequent years.

Serial Numbers 1 to 4 of the Table in the said Schedule applies to any specified fund and the expression “specified fund” has been defined in clause (g) of Note 1 of the said Schedule.

It is proposed to amend the said clause so as to align the definition of the expression “specified fund” with the definition provided under clause (4D) of section 10 of the Income- tax Act, 1961 and make a consequential amendment thereto.

These amendments will take effect from 1st April, 2026.215 214 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 215 Clause 111 of the Bill seeks to amend Schedule XI to the Income-tax Act, 2025 relating Schedule IV to the said Act specifies the eligible income, which shall not be included to recognised provident funds.

in the total income of the eligible non-residents, foreign companies and other such persons.

It is proposed to amend the provisions of the said Schedule to align with the provisions It is proposed to amend the said Schedule to provide exemption to a foreign company of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 and the on income arising on account of providing capital goods, equipment or tooling to a contract Employees’ Provident Fund Scheme, as follows: –– manufacturer, being a company resident in India, who is located in a custom bonded area, that is, a warehouse referred to in section 65 of the Customs Act, 1962 and produces

(i) to align the treatment of employer contributions with the aggregate monetary cap electronic goods on behalf of the foreign company for a consideration. The said exemption prescribed under section 17(1)(h) of the Income-tax Act, 2025, and the Employees’ shall be provided up to the tax year 2030-2031.

Provident Fund framework;

It is further proposed to amend the said Schedule so as to provide exemption to an

(ii) to reflect that exemption from schemes under the Employees’ Provident Funds individual, being a non-resident for a period of five consecutive tax years immediately and Miscellaneous Provisions Act, 1952 is governed by that Act;

preceding the tax year during which he visits India for the first time for rendering services in India in connection with any scheme as may be notified by the Central Government, on any

(iii) to omit the discretionary relaxation of contribution parity based on salary income which accrues or arises outside India, and is not deemed to accrue or arise in India, thresholds that are no longer relevant, in order to align the provision with the monetary for five consecutive tax years commencing from the first tax year during which he visits limit prescribed under section 17(1)(h) of the Income-tax Act, 2025;

India, if such person renders any service in India in connection with any scheme as may be notified by the Central Government and fulfils such other conditions, as may be provided by

(iv) to align the limits on employer contributions with the Employees’ Provident rules.

Funds and Miscellaneous Provisions Act, 1952 and the absolute monetary ceiling

provided under section 17(1)(h) of the Income-tax Act, 2025;

It is also proposed to amend the said Schedule so as to provide exemption to a foreign company, on any income accruing or arising in India or deemed to accrue or arise in India

(v) to remove the applicable limits for employee-shareholders as no such limit exists by way of procuring data centre services from a specified data centre, for a period up to tax in the Employees’ Provident Fund framework and to align it with the uniform cap year ending on 31st March, 2047, subject to the conditions specified therein.

prescribed under section 17(1)(h) of the Income-tax Act, 2025; and It is also proposed to insert Note 3 so as to define the expressions “data centre”, “data

(vi) to amend the provisions which restrict investment in Government securities, to centre services” and “specified data centre” for the purposes of the said provision in serial align the Schedule with prevailing Employees’ Provident Fund investment norms.

number 13C.

These amendments will take effect from 1st April, 2026 and will, accordingly, apply in These amendments will take effect from 1st April, 2026 and will, accordingly, apply in relation to the tax year 2026-2027 and subsequent years.

relation to the tax year 2026-2027 and subsequent years.

Clause 112 of the Bill seeks to amend Schedule XII to the Income-tax Act, 2025.

Clause 110 of the Bill seeks to amend Schedule VI of the Income-tax Act, 2025 relating to income not to be included in the total income of certain eligible persons in International Part A of the said Schedule provides for the list of minerals or group of minerals Financial Services Centre or having income therefrom.

eligible for deduction on deferred basis for prospecting, or extraction or production or development of a mine or other natural deposit of the specified minerals.

Serial Numbers 1 to 4 of the Table in the said Schedule applies to any specified fund and the expression “specified fund” has been defined in clause (g) of Note 1 of the said Schedule.

It is proposed to amend the said Part so as to incentivise the prospecting and exploration of the critical minerals by expanding the list of minerals to make the expenditure on such It is proposed to amend the said clause so as to align the definition of the expression prospecting and exploring of critical minerals also eligible for deduction as per the provisions “specified fund” with the definition provided under clause (4D) of section 10 of the Income- of section 51 of the said Act.

tax Act, 1961 and make a consequential amendment thereto.

This amendment will take effect from 1st April, 2026 and will, accordingly, apply in These amendments will take effect from 1st April, 2026. relation to the tax year 2026-2027 and subsequent years.216 216 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— Clause 113 of the Bill seeks to amend Schedule XIV to the Income-tax Act, 2025 relating to insurance business.

It is proposed to consequentially amend clause (a) of sub-paragraph (1) of the said Schedule so as to substitute the words “this rule” with the words “this paragraph”.

It is further proposed to amend the said Schedule so as to insert sub-paragraph (3) in paragraph 4 to provide that the amount not deductible under sub-clause (i) or (ii) of section 35(b), which is added under sub-paragraph (1)(a), shall be allowed subsequently as a deduction in a tax year as per the provisions of the said sub-clause, as the case may be.

These amendments will take effect from 1st April, 2026 and will, accordingly, apply in relation to the tax year 2026-2027 and subsequent years.

Clauses 114 to 128 of the Bill seeks to insert a new Chapter relating to the Foreign Assets of Small Taxpayers Disclosure Scheme, 2026.

The Chapter, inter alia, provides––

(a) the short title and commencement of the Scheme and the date from which it shall come into force;

(b) the definitions of certain expressions relating to “assessee”, “assessment”, “assessment year”, “Board”, “declarant”, “declaration”, “last date”, “previous year” “prescribed” “undisclosed asset located outside India”, “undisclosed foreign income” and “value of the asset”;

(c) the provisions relating to eligibility and filing of declaration by an assessee in respect of undisclosed foreign income or undisclosed assets located outside India;

(d) the provisions relating to the amount payable by the declarant, including the rate of tax, penalty or fee payable, subject to specified monetary thresholds and conditions;

(e) the provisions relating to the manner, form and verification of the declaration and the circumstances in which such declaration shall be deemed invalid;

(f) the provisions relating to electronic verification of declarations, determination of the amount payable, time limits for payment, levy of interest for delayed payment and issuance of certificate evidencing payment;

(g) the provisions relating to non-inclusion of income or assets declared under the Scheme in the total income of the declarant and the effect of such declaration on pending assessment proceedings;

(h) the provisions relating to non-refund of any amount paid under the Scheme and the bar on claiming rectification, revision, set-off or relief in respect of completed assessments;217 216 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 217 Clause 113 of the Bill seeks to amend Schedule XIV to the Income-tax Act, 2025 relating (i) the provisions relating to grant of immunity from levy of tax, penalty and prosecution to insurance business. under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, subject to fulfilment of the conditions of the Scheme;

It is proposed to consequentially amend clause (a) of sub-paragraph (1) of the said Schedule so as to substitute the words “this rule” with the words “this paragraph”. (j) the provisions relating to cases to which the Scheme shall not apply, including cases involving proceeds of crime or completed assessments under the Prevention of Money- It is further proposed to amend the said Schedule so as to insert sub-paragraph (3) in laundering Act, 2002 and the Black Money (Undisclosed Foreign Income and Assets) and paragraph 4 to provide that the amount not deductible under sub-clause (i) or (ii) of section Imposition of Tax Act, 2015;

35(b), which is added under sub-paragraph (1)(a), shall be allowed subsequently as a deduction in a tax year as per the provisions of the said sub-clause, as the case may be. (k) the provisions relating to the power of the Central Board of Direct Taxes to issue directions and grant relaxation in public interest, the power of the Central Government to These amendments will take effect from 1st April, 2026 and will, accordingly, apply in remove difficulties and the power to make rules for carrying out the provisions of the relation to the tax year 2026-2027 and subsequent years. Scheme.

Clauses 114 to 128 of the Bill seeks to insert a new Chapter relating to the Foreign Assets This Chapter will take effect from such date as the Central Government may notify in the of Small Taxpayers Disclosure Scheme, 2026. Official Gazette.

The Chapter, inter alia, provides–– Indirect taxes Clause 129 of the Bill seeks to amend sub-section (2) of section 1 of the Customs

(a) the short title and commencement of the Scheme and the date from which it shall Act, so as to extend the jurisdiction of the said Act beyond the territorial waters of India for come into force; the purpose of fishing and fishing related activities.

(b) the definitions of certain expressions relating to “assessee”, “assessment”, Clause 130 of the Bill seeks to insert a new clause in section 2 of the Customs Act, “assessment year”, “Board”, “declarant”, “declaration”, “last date”, “previous year” so as to define the expression “Indian-flagged fishing vessel”.

“prescribed” “undisclosed asset located outside India”, “undisclosed foreign income” and “value of the asset”; Clause 131 of the Bill seeks to amend sub-section (6) of section 28 of the Customs Act to provide that the penalty paid under sub-section (5) of section 28, on determination under

(c) the provisions relating to eligibility and filing of declaration by an assessee in respect the said sub-section, shall be deemed to be a charge for non-payment of duty under clause of undisclosed foreign income or undisclosed assets located outside India; (i) thereof.

(d) the provisions relating to the amount payable by the declarant, including the rate of Clause 132 seeks to amend sub-section (2) of section 28J of the Customs Act so as to tax, penalty or fee payable, subject to specified monetary thresholds and conditions; provide that advance ruling under sub-section (1) of that section shall remain valid for a period of five years or till there is a change in law or facts on the basis of which the advance

(e) the provisions relating to the manner, form and verification of the declaration and the ruling has been pronounced, whichever is earlier. circumstances in which such declaration shall be deemed invalid;

It further seeks to substitute the proviso to the said sub-section so as to provide that in

(f) the provisions relating to electronic verification of declarations, determination of the respect of any advance ruling in force on the date on which the Finance Bill, 2026 receives amount payable, time limits for payment, levy of interest for delayed payment and issuance the assent of the President, the Authority shall upon a request by the applicant, extend the of certificate evidencing payment; validity for five years from the date of the ruling.

(g) the provisions relating to non-inclusion of income or assets declared under the Clause 133 of the Bill seeks to insert a new section 56A in the Customs Act so as to Scheme in the total income of the declarant and the effect of such declaration on pending make special provisions for fishing and fishing related activities by an Indian-flagged fishing assessment proceedings; vessel beyond territorial waters of India. It seeks to provide that fish harvested beyond the territorial waters of India may be brought into India free of duty and to treat fish that has

(h) the provisions relating to non-refund of any amount paid under the Scheme and the landed at foreign port as export of goods in such manner as may be provided by rules. It bar on claiming rectification, revision, set-off or relief in respect of completed assessments;218 218 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— further seeks to make regulations to provide for the form and manner of making an entry in respect of fish harvested by an Indian-flagged fishing vessel including its declaration, custody, examination, assessment of duty, clearance, transit or transhipment.

Clause 134 of the Bill seeks to substitute section 67 of the Customs Act, relating to removal of goods from one warehouse to another.

The proposed section seeks to do away with the requirement of prior permission of the proper officer under the said section for removal of warehoused goods from one warehouse to another.

Clause 135 of the Bill seeks to amend clause (b) of section 84 of the Customs Act, so as to empower the Board to make regulations for the custody of goods imported or to be exported by post or courier.

Customs tariff Clause 136 of the Bill seeks to amend the First Schedule to the Customs Tariff Act in the manner specified in,–

(a) the Second Schedule with a view to impose a composite duty on certain goods;

(b) the Third Schedule so as to revise the rates in respect of certain tariff items with effect from the 1st April, 2026;

(c) the Fourth Schedule, so as to create new tariff entries and the Fifth Schedule, so as to revise the rates in respect of certain tariff items, with effect from the 1st of May, 2026.

Central Goods and Services Tax Clause 137 of the Bill seeks to amend sub-section (3) of section 15 of the Central Goods and Services Tax Act to do away with requirement of linking the post-sale discount with an agreement specifically linked to relevant invoices and to refer to issuance of credit note under section 34 where the input tax credit is reversed by the recipient.

Clause 138 of the Bill seeks to amend section 34 of the Central Goods and Services Tax Act so as to include the reference of discount referred under clause (b) of sub-section

(3) of section 15 in the said section for issuing credit notes for post-supply discounts.

Clause 139 of the Bill seeks to amend sub-section (6) of section 54 of the Central Goods and Services Tax Act to extend the provisions of provisional refund to refunds arising out of inverted duty structure.

The clause further seeks to amend sub-section (14) of section 54 of the Central Goods and Services Tax Act to provide for removing the threshold limit for refund claim in case of goods exported out of India with payment of tax.219 218 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 219 Clause 140 of the Bill seeks to insert a new sub-section (1A) in section 101A of the further seeks to make regulations to provide for the form and manner of making an entry in Central Goods and Services Tax Act so as to provide that till the National Appellate respect of fish harvested by an Indian-flagged fishing vessel including its declaration, Authority is constituted under sub-section (1), the Government may on the recommendation custody, examination, assessment of duty, clearance, transit or transhipment.

of the Council, by notification, empower any existing Authority to hear appeals made under

section 101B.

Clause 134 of the Bill seeks to substitute section 67 of the Customs Act, relating to removal of goods from one warehouse to another.

It further seeks to provide that in such case, the provisions of sub-sections (2) to (13) shall not apply.

The proposed section seeks to do away with the requirement of prior permission of the proper officer under the said section for removal of warehoused goods from one It also seeks to insert an Explanation in the said sub-section so as to provide that the warehouse to another.

expression “existing Authority” shall include a Tribunal.

Clause 135 of the Bill seeks to amend clause (b) of section 84 of the Customs Act, Integrated Goods and Services Tax so as to empower the Board to make regulations for the custody of goods imported or to be exported by post or courier.

Clause 141 of the Bill seeks to omit clause (b) of sub-section (8) of section 13 of the Integrated Goods and Services Tax Act, 2017 so as to provide that the place of supply for Customs tariff “intermediary services” shall be determined as per the provisions of sub-section (2) of section 13 of the said Act, which is the location of the recipient of such services.

Clause 136 of the Bill seeks to amend the First Schedule to the Customs Tariff Act in the manner specified in,– MISCELLANEOUS

(a) the Second Schedule with a view to impose a composite duty on certain goods;

Clause 142 seeks to amend the Seventh Schedule to the Finance Act, 2001 in the manner specified in the Sixth Schedule with effect from 1st May, 2026 so as to revise the

(b) the Third Schedule so as to revise the rates in respect of certain tariff items with National Calamity Contingent Duty rate on chewing tobacco, jarda scented tobacco and other effect from the 1st April, 2026;

(including gutkha).

(c) the Fourth Schedule, so as to create new tariff entries and the Fifth Schedule, so Clause 143 of the Bill seeks to amend section 98 of the Finance (No.2) Act, 2004 as to revise the rates in respect of certain tariff items, with effect from the 1st of May, 2026.

relating to charge of securities transaction tax.

Central Goods and Services Tax The said section, inter alia, provides that the securities transaction tax on sale of–– Clause 137 of the Bill seeks to amend sub-section (3) of section 15 of the Central

(i) an option in securities is 0.1 per cent. of the option premium;

Goods and Services Tax Act to do away with requirement of linking the post-sale discount with an agreement specifically linked to relevant invoices and to refer to issuance of credit

(ii) an option in securities when such option is exercised is 0.125 per cent. of the note under section 34 where the input tax credit is reversed by the recipient. intrinsic price; and Clause 138 of the Bill seeks to amend section 34 of the Central Goods and Services

(iii) a futures in securities is 0.02 per cent. of the price at which “futures” are traded.

Tax Act so as to include the reference of discount referred under clause (b) of sub-section

(3) of section 15 in the said section for issuing credit notes for post-supply discounts.

It is proposed to amend the said section so as to increase the said rates from the existing rate of securities transaction tax on sale of–– Clause 139 of the Bill seeks to amend sub-section (6) of section 54 of the Central Goods and Services Tax Act to extend the provisions of provisional refund to refunds arising

(i) an option in securities to 0.15 per cent. of the option premium; out of inverted duty structure.

(ii) an option in securities, where option is exercised to 0.15 per cent. of the intrinsic The clause further seeks to amend sub-section (14) of section 54 of the Central Goods price; and and Services Tax Act to provide for removing the threshold limit for refund claim in case of goods exported out of India with payment of tax.221 220 220 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—

(iii) futures in securities to 0.05 per cent. of the price at which such “futures” are MEMORANDUM REGARDING DELEGATED LEGISLATION traded.

The provisions of the Bill, inter alia, empower the Central Government to issue notifications and the Board to make rules for various These amendments will take effect from 1st April, 2026 and will, accordingly, apply purposes as specified therein.

in relation to the tax year 2026-2027 and subsequent years.

Clause 15 of the Bill seeks to amend section 270AA of the Income- Clause 144 of the Bill seeks to amend sections 49 and 50 of the Black Money tax Act, 1961 relating to immunity from imposition of penalty, etc. Sub- (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 relating to the section (2) of the said section empowers the Board to provide by rules the punishment for failure to furnish return in relation to foreign income and asset and form for application to grant immunity and the manner of verification of punishment for failure to furnish in return of income, any information about an asset such application.

(including financial interest in any entity) located outside India, respectively.

Clause 69 of the Bill seeks to amend section 352 of the Income-tax Act, 2025 relating to tax on accreted income. It is proposed to substitute The said section provides for prosecution where a resident, other than not ordinarily serial number 8 and the entries relating thereto of the Table in sub-section resident in India, holding foreign assets or income wilfully fails to furnish the return of

(4) of the said section so as to empower the Board to provide by rules for income or fails to disclose such information in their return of income. the conditions for merger for the purposes of the said section.

It is proposed to amend the said sections to insert proviso in both the sections so as Clause 70 of the Bill seeks to insert a new section 354A in the to provide that the provisions of the said sections shall not apply in respect of an asset or Income-tax Act, 2025 relating to merger of registered non-profit assets (other than immovable property) where the aggregate value of such asset or assets organisations in certain cases. The said section empowers the Board to does not exceed twenty lakh rupees, to make it harmonious with the threshold specified in provide by rules for the conditions of merger for the purposes of said the sections 42 and 43 of the said Act. section.

Clause 74 of the Bill seeks to amend section 395 of the Income-tax These amendments will take effect retrospectively from 1st October, 2024.

Act, 2025 relating to certificates. Sub-section (6) of the said section empowers the Board to provide by rules for the conditions for filing application to the prescribed income-tax authority.

Clause 85 of the Bill seeks to amend section 440 of the Income-tax Act, 2025 relating to immunity from imposition of penalty, etc. Sub-

section (2) of the said section empowers the Board to provide by rules the form and the manner of verification of application for grant of waiver of penalty and immunity from initiation of proceeding for prosecution.

Clause 109 of the Bill seeks to amend Schedule IV of the Income-tax Act, 2025 relating to income not to be included in total income of eligible non-residents, foreign companies and other such persons. It is proposed to amend the said Schedule so as to empower the Board to provide by rules for the conditions to be fulfilled by person rendering any service in India in connection with any scheme.

Clause 110 of the Bill seeks to amend Schedule VI of the Income-tax Act, 2025 relating to income not to be included in the total income of certain eligible persons in International Financial Services Centre or having income therefrom. Sub-item (II) of item C of the said Schedule empowers the Board to provide by rules for the conditions for holding of number of units.221 220 Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 221

(iii) futures in securities to 0.05 per cent. of the price at which such “futures” are MEMORANDUM REGARDING DELEGATED LEGISLATION traded.

in relation to the tax year 2026-2027 and subsequent years.

(including financial interest in any entity) located outside India, respectively.

(4)of the said section so as to empower the Board to provide by rules for income or fails to disclose such information in their return of income. the conditions for merger for the purposes of the said section.

Clause 74 of the Bill seeks to amend section 395 of the Income-tax These amendments will take effect retrospectively from 1st October, 2024.

Act, 2025 relating to certificates. Sub-section (6) of the said section empowers the Board to provide by rules for the conditions for filing application to the prescribed income-tax authority.

Clause 85 of the Bill seeks to amend section 440 of the Income-tax Act, 2025 relating to immunity from imposition of penalty, etc. Sub-

Clause 110 of the Bill seeks to amend Schedule VI of the Income-tax Act, 2025 relating to income not to be included in the total income of certain eligible persons in International Financial Services Centre or having income therefrom. Sub-item (II) of item C of the said Schedule empowers the Board to provide by rules for the conditions for holding of number of units.222 222 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—Sec. 2] Clauses 114 to 128 of the Bill seeks to insert a new Chapter relating to the Foreign Assets of Small Taxpayers Disclosure Scheme, 2026.

Clause 128 empowers the Board to make rules for carrying out the provisions of the said Scheme.

Indirect taxes Clause 133 of the Bill seeks to insert a new section 56A in the Customs Act. Sub-section (1) of the said section 56A empowers the Central Government to make rules to provide for the manner and the conditions subject to which the fish harvested by an Indian-flagged fishing vessel beyond territorial waters of India may be brought into India free of duty and the fish that has landed at a foreign port may be treated as export of goods. Sub-section (2) of the said section empowers the Central Board of Indirect Taxes and Customs to make regulations to provide for the form and manner of making an entry in respect of fish harvested including its declaration, custody, examination, assessment of duty, clearance, transit or transhipment.

2. The matters in respect of which rules or regulations may be made are matters of procedure and details and it is not practicable to provide for them in the Bill itself.

3. The delegation of legislative powers is, therefore, of a normal character. ___________ UTUPTAPALL K KUUMMAARR SSIINNGGHH , Secretary SGecerneetarrayl General.

UPLOADED BY THE MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI–110002 AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI–110054.

MGIPMRND—521GI(S4)—01-02-2026.

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The Finance Bill 2026

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