This article discusses the key amendments to the Finance Bill 2026, as passed by the Lok Sabha on March 25, 2026, including changes to buyback taxation, capital gains exemptions, reassessment rules, startup benefits, and more. Here's what you need to know:
‣ Cross-Act Refund Adjustment – Refunds under ITA 1961 can now be set off against dues under ITA 2025 and vice versa, closing a critical transitional gap
‣ Validation of Electronic Approvals – Approvals granted electronically by tax authorities will not be invalidated merely for lack of reasons or missing digital signatures
‣ New Development Bank Tax Exemption – NDB added to the list of persons fully exempt from income tax under Schedule VII of ITA 2025
‣ Startup Turnover Limit Hiked – Eligible startup turnover limit for Section 80-IAC deduction raised from ₹100 crores to ₹300 crores, effective April 1, 2026
‣ No Arrest for Tax Recovery – TRO's power to arrest & detain taxpayers for tax recovery is abolished with effect from March 30, 2026
