Government Notifies Finance Act, 2026 [Read Notification]

Government Notifies Finance Act, 2026 [Read Notification]

The Ministry of Law and Justice under the Legislative Department recently issued a notification (No. 4 OF 2026) on March 30, 2026, regarding the new Finance Act.

Parliament has passed a new law to implement the Central Government’s financial proposals for the 2026-27 financial year. This act will be known as the Finance Act, 2026.

The Act states that most of its provisions (Sections 2 to 129, clause (b) of Section 152, and Section 156) will come into force from April 1, 2026. Apart from this, it also includes (153 to 155), which will start later, on a date decided by the Central Government through an official notification.

The Act also explains how income tax will be charged for the assessment year starting 1st April 2026. Taxes will be computed in accordance with the provisions of the Income-tax Act, 1961, applying the rates specified in the schedule annexed to the Finance Act.

There is also a special rule about agricultural income. If a person earns agricultural income above Rs 5,000 and also has other taxable income above the basic exemption limit, then the agricultural income is not directly taxed. However, it is still considered for calculating the tax rate on the total income.

Note: It officially came into effect after receiving the President’s approval on March 30, 2026.

For more information, refer to the official notification.

Download Notification