New Delhi: Nirmala Sitharaman is set to introduce 53 amendments to the Finance Bill 2026 in the Lok Sabha as the government prepares to implement the new income tax framework from April 1. Among the proposed revisions, 32 amendments involve substantive policy changes while the rest relate to procedural adjustments.
The proposed changes are intended to simplify aspects of the income tax system while strengthening the government’s ability to enforce tax regulations. One of the key proposals includes granting tax authorities expanded powers to reopen old assessments in cases where courts or appellate tribunals provide relevant findings. This means that even previously closed cases may be reviewed again if they are connected to judicial orders.
The amendments also aim to tighten reassessment procedures to reduce ambiguity and prevent misuse of existing provisions. Another major change introduces defined timelines for tax notices. Taxpayers will receive a minimum response period of 30 days and a maximum limit of up to three months to respond, which is expected to bring greater clarity and predictability to tax proceedings.
Additional provisions are designed to protect tax officials by preventing their decisions from being challenged solely on technical grounds. This measure is expected to strengthen the government’s position in legal disputes related to taxation.
The bill also proposes extending tax deductions for certain units operating in Special Economic Zone areas to 20 years. Similar incentives will apply to units located in International Financial Services Centres under Section 80LA, offering businesses greater certainty for long term investment planning.
Another amendment includes capital gains tax relief for beneficiaries under the land pooling scheme in Andhra Pradesh.
The Finance Bill serves as the legal mechanism that converts tax proposals announced in the Union Budget into enforceable law once approved by Parliament. The current bill is particularly significant as it aligns with the transition to the Income-tax Act 2025, which will replace the decades old Income-tax Act 1961 and introduce a revised tax structure in the country.
