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Taxation Central Ministry of Finance Income Tax Act, 1961

Finance Bill, 2026

01-Feb-2026 | BILL No. 3 OF 2026

Government of India has issued the Finance Bill, 2026. The Finance Bill, 2026 seeks to give effect to the financial proposals of the Central Government for FY 2026-27. It primarily lays down the rates of income-tax, surcharge and cess, and operationalises provisions under both the Income-tax Act, 1961 and the new Income-tax Act, 2025 (effective from 1 April 2026). Most provisions of the Finance Act, 2026 will come into force from 1 April 2026. Certain provisions shall take effect from 1 May 2026 or such other date as may be notified by the Central Government. Key Provisions: - Income-tax for Assessment Year 2026-27 shall be levied at the rates specified in Part I-A of the First Schedule. - Clarifications are provided on surcharge applicability under section 115BAC(1A) (new personal tax regime), sections 115BAA and 115BAB (concessional corporate tax regimes), and sections 115JB and 115JC (MAT and AMT). - Ensures continuity of existing tax rates and surcharge structures. - Operationalises the Income-tax Act, 2025. - Retains the new tax regime with defined surcharge caps. - A Health and Education Cess at 4% shall be levied on the aggregate of income-tax and surcharge. - Provides clarity on marginal relief and cess. - Serves as the statutory backbone for tax administration in FY 2026-27. For more information, kindly refer top the attached document.

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