Bharat Income Tax Act 2025 Act No. 30 to 2025 W.E.F. Tax Year 1-4-26, As Amended By The Finance Act 2026 with Free E-Book 39th Edition 2026

DescriptionBharat Income Tax Act 2025 Act No. 30 to 2025 W.E.F. Tax Year 1-4-26, As Amended By The Finance Act 2026 with Free E-Book 39th Edition 2026Bharat Income Tax Act with Free E-Book Edition 2026DescriptionCHAPTER IPRELIMINARY1.Short title, extent and commencement2.Definitions3.Definition of “tax year”CHAPTER IIBASIS OF CHARGE4.Charge of income-tax5.Scope of total income6.Residence in India7.Income deemed to be received and dividend deemed to be income in a tax year8.Income on receipt of capital asset or stock-in-trade by specified person from specified entity9.Income deemed to accrue or arise in India10.Apportionment of income between spouses governed by Portuguese Civil CodeCHAPTER IIIINCOMES WHICH DO NOT FORM PART OF TOTAL INCOMEA.—Incomes not to be included in total income11.Incomes not included in total incomeB.—Incomes not to be included in total income of political parties and electoral trusts12.Incomes not included in total income of political parties and electoral trustsCHAPTER IVCOMPUTATION OF TOTAL INCOMEA.—Heads of income13.Heads of income14.Income not forming part of total income and expenditure in relation to such incomeB.—Salaries15.Salaries16.Income from salary17.Perquisite18.Profits in lieu of salary19.Deductions from salariesC.—Income from house propertySection No.20.Income from house property21.Determination of annual value22.Deductions from income from house property23.Arrears of rent and unrealised rent received subsequently24.Property owned by co-owners25.InterpretationD.—Profits and gains of business or profession26.Income under head “Profits and gains of business or profession”27.Manner of computing profits and gains of business or profession28.Rent, rates, taxes, repairs and insurance29.Deductions related to employee welfare30.Deduction on certain premium31.Deduction for bad debt and provision for bad and doubtful debt32.Other deductions33.Deduction for depreciation34.General conditions for allowable deductions35.Amounts not deductible in certain circumstances36.Expenses or payments not deductible in certain circumstances37.Certain deductions allowed on actual payment basis only38.Certain sums deemed as profits and gains of business or profession39.Computation of actual cost40.Special provision for computation of cost of acquisition of certain assets41.Written down value of depreciable asset42.Capitalising impact of foreign exchange fluctuation43.Taxation of foreign exchange fluctuation44.Amortisation of certain preliminary expenses45.Expenditure on scientific research46.Capital expenditure of specified business47.Expenditure on agricultural extension project and skill development project48.Tea development account, coffee development account and rubber development account49.Site Restoration Fund50.Special provision in case of trade, profession or similar association51.Amortisation of expenditure for prospecting certain minerals52.Amortisation of expenditure for telecommunications services, amalgamation, demerger, scheme of voluntary retirement, etc.53.Full value of consideration for transfer of assets other than capital assets in certain cases54.Business of prospecting for mineral oils55.Insurance business56.Special provision in case of interest income of specified financial institutions57.Revenue recognition for construction and service contracts58.Special provision for computing profits and gains of business or profession on presumptive basis in case of certain residents59.Computation of royalty and fee for technical services in hands of non-residents60.Deduction of head office expenditure in case of non-residentsSection No.61.Special provision for computation of income on presumptive basis in respect of certain business activities of certain non-residents.62.Maintenance of books of account63.Tax audit64.Special provision for computing deductions in case of business reorganisation of co-operative banks65.Interpretation for purposes of section 6466 InterpretationE.—Capital gains67.Capital gains68.Capital gains on distribution of assets by companies in liquidation69.Capital gains on purchase by company of its own shares or other specified securities70.Transactions not regarded as transfer71.Withdrawal of exemption in certain cases72.Mode of computation of capital gains73.Cost with reference to certain modes of acquisition74.Special provision for computation of capital gains in case of depreciable assets75.Special provision for cost of acquisition in case of depreciable asset76.Special provision for computation of capital gains in case of Market Linked Debenture77.Special provision for computation of capital gains in case of slump sale78.Special provision for full value of consideration in certain cases79.Special provision for full value of consideration for transfer of share other than quoted share80.Fair market value deemed to be full value of consideration in certain case81.Advance money received82.Profit on sale of property used for residence83.Capital gains on transfer of land used for agricultural purposes not to be charged in certain cases84.Capital gains on compulsory acquisition of lands and buildings not to be charged in certain cases85.Capital gains not to be charged on investment in certain bonds86.Capital gains on transfer of certain capital assets not to be charged in case of investment in residential house87.Exemption of capital gains on transfer of assets in cases of shifting of industrial undertaking from urban area88.Exemption of capital gains on transfer of assets in cases of shifting of industrial undertaking from urban area to any Special Economic Zone89.Extension of time for acquiring new asset or depositing or investing amount of capital gains90.Meaning of “adjusted”, “cost of improvement” and “cost of acquisition”91.Reference to Valuation OfficerF.—Income from other sources92.Income from other sources93.Deductions94.Amounts not deductible95.Profits chargeable to taxCHAPTER VINCOME OF OTHER PERSONS INCLUDEDIN TOTAL INCOME OF ASSESSEESection No.96.Transfer of income without transfer of assets97.Chargeability of income in transfer of assets98.“Transfer” and “revocable transfer” defined99.Income of individual to include income of spouse, minor child, etc.100.Liability of person in respect of income included in income of another personCHAPTER VIAGGREGATION OF INCOME101.Total income102.Unexplained credits103.Unexplained investment104.Unexplained asset105.Unexplained expenditure106.Amount borrowed or repaid through negotiable instrument, hundi, etc.107.Charge of taxCHAPTER VIISET OFF, OR CARRY FORWARD AND SET OFF OF LOSSES108.Set off of losses under same head of income109.Set off of losses under any other head of income110.Carry forward and set off of loss from house property111.Carry forward and set off of loss from Capital gains112.Carry forward and set off of business loss113.Set off and carry forward of losses computed in respect of speculation business114.Set off and carry forward of losses computed in respect of specified business115.Set off and carry forward of losses from specified activity116.Treatment of accumulated losses and unabsorbed depreciation in amalgamation or demerger, etc.117.Treatment of accumulated losses and unabsorbed depreciation in scheme of amalgamation in certain cases118.Carry forward and set off of losses and unabsorbed depreciation in business reorganisation of co-operative banks119.Carry forward and set off of losses not permissible in certain cases120.No set off of losses against undisclosed income consequent to search, requisition and survey121.Submission of return for lossesCHAPTER VIIIDEDUCTIONS TO BE MADE IN COMPUTING TOTAL INCOMEA.—General122.Deductions to be made in computing total incomeB.—Deductions in respect of certain payments123.Deduction for life insurance premia, deferred annuity, contributions to provident fund, etc.124.Deduction in respect of employer and assessee contribution to pension scheme of Central Government125.Deduction in respect of contribution to Agnipath SchemeSection No.126.Deduction in respect of health insurance premia127.Deduction in respect of maintenance including medical treatment of a dependant who is a person with disability128.Deduction in respect of medical treatment, etc.129.Deduction in respect of interest on loan taken for higher education130.Deduction in respect of interest on loan taken for residential house property131.Deduction in respect of interest on loan taken for certain house property132.Deduction in respect of purchase of electric vehicle133.Deduction in respect of donations to certain funds, charitable institutions, etc.134.Deductions in respect of rents paid135.Deduction in respect of certain donations for scientific research or rural development136.Deduction in respect of contributions given by companies to political parties137.Deduction in respect of contributions given by any person to political partiesC.—Deductions in respect of certain incomes138.Deductions in respect of profits and gains from industrial undertakings or enterprises engaged in infrastructure development, etc.139.Deductions in respect of profits and gains by an undertaking or enterprise engaged in development of Special Economic Zone140.Special provision in respect of specified business141.Deduction in respect of profits and gains from certain industrial undertakings142.Deductions in respect of profits and gains from housing projects143.Special provisions in respect of certain undertakings in North-Eastern States144.Special provisions in respect of newly established Units in Special Economic Zones145.Deduction for businesses engaged in collecting and processing of bio-degradable waste146.Deduction in respect of additional employee cost147.Deductions for income of Offshore Banking Units and Units of International Financial Services Centre148.Deduction in respect of certain inter-corporate dividends149.Deduction in respect of income of co-operative societies150.Deduction in respect of income of federal co-operative151.Deduction in respect of royalty income, etc., of authors of certain books other than text-books152.Deduction in respect of royalty on patentsD.—Deductions in respect of other incomes153.Deduction for interest on depositsE.—Other deductions154.Deduction in case of a person with disabilityCHAPTER IXREBATES AND RELIEFSA.—Rebates and reliefs155.Rebate to be allowed in computing income-taxSection No. .156.Rebate of income-tax in case of certain individuals157.Relief when salary, etc., is paid in arrears or in advance158.Relief from taxation in income from retirement benefit account maintained in a notified countryB.—Double taxation relief159.Agreement with foreign countries or specified territories and adoption by Central Government of agreement between specified associations for double taxation relief160.Countries with which no agreement existsCHAPTER XSPECIAL PROVISIONS RELATING TO AVOIDANCE OF TAX161.Computation of income from international transaction and specified domestic transaction having regard to arm’s length price162.Meaning of associated enterprise163.Meaning of international transaction164.Meaning of specified domestic transaction165.Determination of arm’s length price166.Reference to Transfer Pricing Officer167.Power of Board to make safe harbour rules168.Advance pricing agreement169.Effect to advance pricing agreement170.Secondary adjustment in certain cases171.Maintenance, keeping and furnishing of information and document by certain persons172.Report from an accountant to be furnished by persons entering into international transaction or specified domestic transaction173.Definitions of certain terms relevant to determination of arm’s length price, etc.174.Avoidance of income-tax by transactions resulting in transfer of income to non-residents175.Avoidance of tax by certain transactions in securities176.Special measures in respect of transactions with persons located in notified jurisdictional area177.Limitation on interest deduction in certain casesCHAPTER XIGENERAL ANTI-AVOIDANCE RULE178.Applicability of General Anti-Avoidance Rule179.Impermissible avoidance arrangement180.Arrangement to lack commercial substance181.Consequences of impermissible avoidance arrangement182.Treatment of connected person and accommodating party183.Application of this Chapter184.InterpretationCHAPTER XIIMODE OF PAYMENT IN CERTAIN CASES, ETC.185.Mode of taking or accepting certain loans, deposits and specified sum186.Mode of undertaking transactions187.Acceptance of payment through prescribed electronic modes188.Mode of repayment of certain loans or deposits or specified advances189.InterpretationCHAPTER XIIIDETERMINATION OF TAX IN SPECIAL CASESA.—Determination of tax in certain special casesSection No.190.Determination of tax where total income includes income on which no tax is payable191.Tax on accumulated balance of recognised provident fund192.Tax in case of block assessment of search cases193.Tax on income from Global Depository Receipts purchased in foreign currency or capital gains arising from their transfer194.Tax on certain incomes195.Tax on income referred to in sections 102 to 106B.—Special provisions relating to tax on capital gains196.Tax on short-term capital gains in certain cases197.Tax on long-term capital gains198.Tax on long- term capital gains in certain cases.C.—New tax regime199.Tax on income of certain manufacturing domestic companies200.Tax on income of certain domestic companies201.Tax on income of new manufacturing domestic companies202.New tax regime for individuals, Hindu undivided family and others203.Tax on income of certain resident co-operative societies204.Tax on income of certain new manufacturing co-operative societies205.Conditions for tax on income of certain companies and co-operative societiesD.—Special provisions relating to minimum alternate tax and  alternate minimum t206.Special provision for minimum alternate tax and alternate minimum taxE.—Special provisions relating to non-residents and foreign companies207.Tax on dividends, royalty and fees for technical service in case of foreign companies208.Tax on income from units purchased in foreign currency or capital gains arising from their transfer209.Tax on income from bonds or Global Depository Receipts purchased in foreign currency or capital gains arising from their transfer210.Tax on income of Foreign Institutional Investors from securities or capital gains arising from their transfer211.Tax on non-resident sportsmen or sports associations212.Interpretation213.Special provision for computation of total income of non-residents214.Tax on investment income and long-term capital gains215.Capital gains on transfer of foreign exchange assets not to be charged in certain cases216.Return of income not to be furnished in certain cases217.Application of benefits under sections 212 to 216218.Tax on business income of Offshore Banking Units or International Financial Services Centre unit219.Conversion of an Indian branch of foreign company into subsidiary Indian company220.Foreign company said to be resident in IndiaF.—Special provisions relating to pass-through entities221.Tax on income from securitisation trustsSection No.e222.Tax on income in case of venture capital undertakings223.Tax on income of unit holder and business trust224.Tax on income of investment fund and its unit holdersG.—Special provisions relating to income of shipping companies225.Income from business of operating qualifying ships226.Tonnage tax scheme227.Computation of tonnage income228.Relevant shipping income and exclusion from book profit229.Depreciation and gains relating to tonnage tax assets230.Exclusion of deduction, loss, set off, etc.231.Method of opting of tonnage tax scheme and validity232.Certain conditions for applicability of tonnage tax scheme233.Amalgamation and demerger234.Avoidance of tax and exclusion from tonnage tax scheme235.InterpretationCHAPTER XIVTAX ADMINISTRATIONA.—Authorities, jurisdiction and functions236.Income-tax authorities237.Appointment of income-tax authorities238.Control of income-tax authorities239.Instructions to subordinate authorities240.Taxpayer’s Charter241.Jurisdiction of income-tax authorities242.Jurisdiction of Assessing Officers243.Power to transfer cases244.Change of incumbent of an office245.Faceless jurisdiction of income-tax authoritiesB.—Powers246.Power regarding discovery, production of evidence, etc.247.Search and seizure248.Powers to requisition249.Reasons not to be disclosed250.Application of seized or requisitioned assets251.Copying, extraction, retention and release of books of account and documents seized or requisitioned252.Power to call for information253.Powers of survey254.Power to collect certain information255.Power to inspect registers of companies256.Power of certain income-tax authorities257.Proceedings before income-tax authorities to be judicial proceedings258.Disclosure of information relating to assessees259.Power to call for information by prescribed income-tax authority260.Faceless collection of information261.InterpretationCHAPTER XVRETURN OF INCOMEA.—Allotment of Permanent Account Number262.Permanent Account NumberB.—Filing of return of incomeSection No.263.Return of income264.Scheme for submission of returns through tax return preparers265.Return by whom to be verified266.Self-assessment267.Tax on updated returnCHAPTER XVIPROCEDURE FOR ASSESSMENTA.—Procedure for assessment268.Inquiry before assessment269.Estimation of value of assets by Valuation Officer270.Assessment271.Best judgment assessment272.Power of Joint Commissioner to issue directions in certain cases273.Faceless Assessment274.Reference to Principal Commissioner or Commissioner in certain cases275.Reference to Dispute Resolution Panel276.Method of accounting277.Method of accounting in certain cases278.Taxability of certain income279.Income escaping assessment280.Issue of notice where income has escaped assessment281.Procedure before issuance of notice under section 280282.Time limit for notices under sections 280 and 281283.Provision for cases where assessment is in pursuance of an order on appeal, etc.284.Sanction for issue of notice285.Other provisions286.Time limit for completion of assessment, reassessment and recomputation287.Rectification of mistake288.Other amendments289.Notice of demand290.Modification and revision of notice in certain cases291.Intimation of lossB.—Special procedure for assessment of search cases292.Assessment of total undisclosed income as a result of search293.Computation of total undisclosed income of block period294.Procedure for block assessment295.Undisclosed income of any other person296.Time-limit for completion of block assessment297.Certain interests and penalties not to be levied or imposed298.Levy of interest and penalty in certain cases299.Authority competent to make assessment of block period300.Application of other provisions of Act301.InterpretationCHAPTER XVIISPECIAL PROVISIONS RELATING TO  CERTAIN PERSONSA.—Association of persons, firm, Hindu undivided family, etc.1.—Legal representatives302.Legal representative2.—Representative assessees — General provisionsSection No.303.Representative assessee304.Liability of representative assessee305.Right of representative assessee to recover tax paid3.—Representative assessees — Special cases306.Who may be regarded as agent307.Charge of tax where share of beneficiaries unknown308.Charge of tax in case of oral trust4.—Association of persons and body of individuals309.Method of computing a member’s share in income of association of persons or body of individuals310.Share of member of association of persons or body of individuals in income of association or body311.Charge of tax where shares of members in association of persons or body of individuals unknown, etc.5.—Executors312.Executor6.—Succession to business or profession313.Succession to business or profession otherwise than on death314.Effect of order of tribunal or court in respect of business reorganisation7.—Partition315.Assessment after partition of Hindu undivided family8.—Profits of non-residents from occasional shipping business316.Shipping business of non-residents9.—Persons leaving India317.Assessment of persons leaving India10.—Association of persons or body of individuals or artificial juridicalperson formed for a particular event or purpose318.Assessment of association of persons or body of individuals or artificial juridical person formed for a particular event or purpose11.—Persons trying to alienate their assets319.Assessment of persons likely to transfer property to avoid tax12.—Discontinuance of business, or dissolution320.Discontinued business321.Association dissolved or business discontinued322.Company in liquidation13.—Private companies323.Liability of directors of private company14.—Assessment of firms324.Charge of tax in case of a firm325.Assessment as a firm326.Assessment when section 325 not complied with15.—Change in constitution, succession and dissolution327.Change in constitution of a firm328.Succession of one firm by another firm329.Joint and several liability of partners for tax payable by firm330.Firm dissolved or business discontinued16.—Liability of partners of limited liability partnership in liquidation331.Liability of partners of limited liability partnership in liquidationB.—Special provisions for registered non-profit organisation1.—RegistrationSection No.332.Application for registration333.Switching over of regimes2.—Income of registered non-profit organisation334.Tax on income of registered non-profit organisation335.Regular income336.Taxable regular income337.Specified income338.Income not to be included in regular income339.Corpus donation340.Deemed corpus donation341.Application of income342.Accumulated income343.Deemed accumulated income3.—Commercial activities by registered non-profit organisation344.Business undertaking held as property345.Restriction on commercial activities by a registered non-profit organisation346.Restriction on commercial activities by registered non-profit organisation, carrying out advancement of any other object of general public utility4.—Compliances347.Books of account348.Audit349.Return of income350.Permitted modes of investment5.—Violations351.Specified violation352.Tax on accreted income353.Other violations6.—Approval for purpose of deduction under section 133(1)(b)(ii)354.Application for approval for purpose of section 133(1)(b)(ii)354A.Merger of registered non-profit organisation in certain cases7.—Interpretation355.InterpretationCHAPTER XVIIIAPPEALS, REVISIONS AND ALTERNATEDISPUTE RESOLUTIONSA.—Appeals1.—Appeals to Joint Commissioner (Appeals) and Commissioner (Appeals)356.Appealable orders before Joint Commissioner (Appeals)357.Appealable orders before Commissioner (Appeals)358.Form of appeal and limitation359.Procedure in appeal360.Powers of Joint Commissioner (Appeals) or Commissioner (Appeals)2.—Appeals to Appellate Tribunal361.Appellate Tribunal362.Appeals to Appellate Tribunal363.Orders of Appellate Tribunal364.Procedure of Appellate Tribunal3.—Appeals to High CourtSection No.365.Appeal to High Court366.Case before High Court to be heard by not less than two Judges4.—Appeals to Supreme Court367.Appeal to Supreme Court368.Hearing before Supreme Court5.—General369.Tax to be paid irrespective of appeal, etc.370.Execution for costs awarded by Supreme Court371.Amendment of assessment on appeal372.Exclusion of time taken for copy373.Filing of appeal by income-tax authority374.Interpretation of “High Court”B.—Special provisions for avoiding repetitive appeals375.Procedure when assessee claims identical question of law is pending before High Court or Supreme Court376.Procedure where an identical question of law is pending before High Courts or Supreme CourtC.—Revision by the Principal Chief Commissioner or Chief Commissioneror Principal Commissioner or Commissioner377.Revision of orders prejudicial to revenue378.Revision of other ordersD.—Alternate Dispute Resolutions1.—Dispute Resolution Committee in certain cases379.Dispute Resolution Committee2.—Advance rulings380.Interpretation381.Board for Advance Rulings382.Vacancies, etc., not to invalidate proceedings383.Application for advance ruling384.Procedure on receipt of application385.Appellate authority not to proceed in certain cases386.Advance ruling to be void in certain circumstances387.Powers of the Board for Advance Rulings388.Procedure of Board for Advance Rulings389.AppealCHAPTER XIXCOLLECTION AND RECOVERY OF TAXA.—General390.Deduction or collection at source and advance payment391.Direct paymentB.—Deduction and collection at source392.Salary and accumulated balance due to an employee393.Tax to be deducted at source394.Collection of tax at source395.Certificates396.Tax deducted is income received397.Compliance and reporting398.Consequences of failure to deduct or pay or, collect or pay399.ProcessingSection No.400.Power of Central Government to relax provisions of this Chapter401.Bar against direct demand on assessee402.InterpretationC.—Advance payment of tax403.Liability for payment of advance tax404.Conditions of liability to pay advance tax405.Computation of advance tax406.Payment of advance tax by assessee on his own accord407.Payment of advance tax by assessee in pursuance of order of Assessing Officer408.Instalments of advance tax and due dates409.When assessee is deemed to be in default410.Credit for advance taxD.—Collection and Recovery411.When tax payable and when assessee deemed in default412.Penalty payable when tax in default413.Certificate by Tax Recovery Officer and validity thereof414.Tax Recovery Officer by whom recovery is to be effected415.Stay of proceedings in pursuance of certificate and amendment or cancellation thereof416.Other modes of recovery417.Recovery through State Government418. Recovery of tax in pursuance of agreements with foreign countries