Summary
- The Finance Bill, 2026, introduced by Finance Minister Nirmala Sitharaman, proposes significant amendments to the Income-tax Act, 1961 and the new Income-tax Act, 2025, set to take effect from 1 April 2026.
- Key changes include the restoration of capital gains exemption under the Andhra Pradesh Land Pooling Scheme and an enhanced tax exemption threshold for startups raised to INR 300 crore.
- Notably, the bill abolishes the power to arrest taxpayers for tax recovery and clarifies that defects in statutory approvals cannot invalidate assessments.
- These amendments aim to reduce litigation and streamline compliance but raise constitutional concerns regarding judicial scrutiny of administrative approvals.
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