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Co-operative societies: existing tax rates unchanged; 7% and 12% surcharges apply with marginal relief; 22% option available.
In respect of co-operative societies, income-tax rates remain unchanged from FY 2025-26. A 7% surcharge on income-tax applies where total income exceeds one crore but does not exceed ten crore rupees, and a 12% surcharge applies where total income exceeds ten crore rupees; marginal relief is provided. A resident co-operative society that satisfies certain conditions may opt to pay tax at 22% under the Act, with a 10% surcharge on such tax.
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Firms: tax rate unchanged; 12% surcharge applies above one crore rupees with a cap on excess liability.
For FY 2026-27, firms are taxed at the Paragraph C rate in Part III of the First Schedule (unchanged from FY 2025-26) and face a 12% surcharge where total income exceeds one crore rupees; however, the aggregate tax plus surcharge on income above one crore is capped so it does not exceed the tax on one crore by more than the excess income amount.
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Local authorities face a 12% surcharge on income-tax for total income exceeding one crore, subject to a cap.
The rate of income-tax for every local authority is specified in Paragraph D of Part III and remains unchanged; a surcharge at the rate of 12% applies where total income exceeds one crore rupees, and the combined tax and surcharge on income above one crore is capped so it does not exceed the tax on one crore rupees by more than the excess amount.
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Corporate tax rates updated for FY 2026-27, including surcharge tiers and health and education cess.
Union Budget 2026-27 sets company income-tax rates and related surcharge and cess treatment for FY 2026-27: domestic companies pay 25% if turnover/gross receipts for tax year 2024-25 are four hundred crore and under the section 199 regime, otherwise 30%, with an option to opt for 22% under section 200 (10% surcharge on that tax). Non domestic companies are taxed at 35% on ordinary income. Surcharge tiers and marginal relief rules remain, and a 4% Health and Education Cess applies on tax inclusive of surcharge without marginal relief for the cess.
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Employer deduction for employee contributions will be tied to the return filing due date under section 263(1).
The Finance Bill, 2026 amends section 29(1)(e) to provide that the due date for claiming a deduction for employee contributions credited by the employer shall be the due date of filing of return of income under section 263(1); the amendment takes effect from 1 April 2026 and applies to tax year 2026-27 and subsequent years.
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Interest income under Motor Vehicles Act now exempt for individuals and legal heirs from FY 2026-27 onward.
Interest payable as part of compensation under the Motor Vehicles Act, 1988 to an individual or the legal heir for death, permanent disability, or bodily injury is proposed to be exempt by addition to the Income-tax Act Schedule; the amendment is effective from 1 April 2026 and applies to the tax year commencing then and subsequent years.
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Interest on compensation from Motor Accidents Claims Tribunal: no tax deducted at source for individuals, effective April 2026.
The Finance Bill, 2026 proposes that no tax shall be deducted at source on interest paid on compensation awarded by the Motor Accidents Claims Tribunal to an individual, removing the prior conditional threshold and providing relief to accident victims. The amendment is effective from 1 April 2026 (Clause 72).
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Electronic TDS/TCS certificates: payees may file for lower or nil deduction; authority may issue or reject applications.
Permits payees to file applications electronically for certificates for deduction of income-tax at lower or nil rates before the prescribed income-tax authority, which may issue the certificate subject to prescribed conditions or reject incomplete or non compliant applications, thereby easing compliance burdens for small taxpayers under Section 395.
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TAN requirement relaxed for resident individuals and HUFs acquiring property from non-resident sellers, effective October 1, 2026.
The Finance Bill, 2026 amends section 397(1)(c) to provide that resident individuals and Hindu undivided families are not required to obtain a tax deduction and collection account number (TAN) to deduct tax at source on any consideration for transfer of immovable property under section 393(2); the amendment takes effect from 1 October 2026.
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Investors can file declarations for no TDS with depositories for listed securities and mutual fund units.
Permits filing of a written declaration for no deduction at source with the depository for incomes under section 393(6) (dividend, interest from securities, income from mutual fund units); depository will forward the declaration to the payor. Eligibility is limited to investors holding securities or units in the depository where securities are listed on a registered Indian stock exchange. The time for payors to furnish received declarations to the prescribed income-tax authority is changed from monthly to quarterly. Effective 1 April 2027.
News Bill
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Supply of manpower: TDS to be treated as payment for work, applying contractor TDS rates.
The Bill amends the definition of work to include supply of manpower so that payments for manpower are subject to the TDS rates applicable to payments for work (1% where payee is individual or HUF; 2% otherwise), resolving uncertainty between contractor/work TDS entries and fees for professional or technical services; the amendment is effective 1 April 2026.
News Bill
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Non-life insurance businesses: amendment allows deduction when previously unpaid TDS is later deducted and paid.
The Bill proposes inserting a new sub paragraph in paragraph 4 of Schedule XIV so that amounts added back for non compliance with TDS timing under section 35(b)(i) and (ii) will be allowed as a deduction in the tax year in which the tax was actually deducted and paid; this aligns paragraph 4 with the existing paragraph 4(2) treatment for section 37 and takes effect from 1 April 2026 for tax year 2026-27 onward.
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Compensation for compulsory land acquisition under the RFCTLARR Act exempt from income tax from April 1, 2026.
The Income tax Schedule is amended to exempt income from awards or agreements made on account of compulsory acquisition of land under the RFCTLARR Act (excluding those specifically excepted under that Act), codifying that such compensation is not taxable under the Income tax Act and resolving prior ambiguity.
News Bill
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Disability pension exemption for armed forces and paramilitary personnel limited to those invalided out due to service-related disability.
Exemption is limited to disability pension for Armed Forces members invalided out due to bodily disability attributable to or aggravated by service, covering both service and disability elements and excluding pensions paid on retirement; the same exemption is extended to paramilitary personnel and takes effect from 1 April 2026 for tax year 2026-27 onward.
News Bill
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Due dates for filing income tax returns extended for non-audit businesses, partners and certain trusts to ease compliance.
Rationalisation of due date deadlines restructures filing timelines by class of taxpayer to provide additional time for business or professional assessees whose accounts do not require audit, partners (and specified spouses) and certain trusts. The amendment sets 30 November for one specified class, 31 October for audited entities, 31 August for non audit business cases and partners/spouses in non audit situations, and 31 July for all other assessees, while preserving 31 July for certain individual return forms; parallel explanatory amendments for trusts are enacted and the changes are given prospective effective dates in 2026.
News Bill
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Revised income-tax returns: filing window extended to 12 months; fee proposed for revisions after nine months.
The proposal increases the time limit for filing a revised income-tax return from nine to twelve months from the end of the relevant tax year to allow those who file belated returns late to still revise returns; a fee is proposed for revised returns filed after nine months, with corresponding amendments and staggered commencement dates across the two income-tax statutes applying to the relevant tax and assessment years.
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Updated tax returns may be allowed when a taxpayer reduces a previously claimed loss, per proposed Finance Bill changes.
Section 263(6) permits an updated return within 48 months but bars updated returns that are returns of loss, limits reductions in tax liability or increases in refund, and restricts filing during or after assessment, reassessment, search, survey or prosecution. The Finance Bill, 2026 proposes to amend section 263(6) to allow filing an updated return where the taxpayer reduces the amount of loss claimed in a duly filed return of loss, and to make parallel amendments to the Income-tax Act, 1961.
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Updated tax returns allowed in response to reassessment notices, with extra tax payable and penalty exclusion for that income.
Permits furnishing an updated return in response to a reassessment notice within the notice period, precludes alternative filing in response to that notice, maintains existing restrictions on updated returns, and requires payment of prescribed additional income tax; where filed in pursuance of the notice an extra 10% of aggregate tax and interest is payable and that income will not form the basis for penalty.
News Bill
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Foreign asset disclosure scheme for small taxpayers offers a time-bound window with tax/fee and limited immunity.
The proposed FAST-DS 2026 provides a time bound window for small taxpayers to declare undisclosed foreign assets and foreign sourced income, requires payment of tax or a fee based on nature and source of acquisition, and grants limited immunity from penalty and prosecution under the Black Money Act for matters covered by the declaration, while excluding cases involving prosecution or proceeds of crime; the scheme is included in the Finance Bill, 2026 (Clauses 114-128) and will commence from a date notified by the Central Government.
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Relaxation of prosecution under the Black Money Act excludes small-value foreign assets from sections 49 and 50.
The Finance Bill proposes that sections 49 and 50 of the Black Money Act will not apply to foreign assets (other than immovable property) where the aggregate value does not exceed twenty lakh rupees, thereby excluding prosecution for minor or inadvertent nondisclosures and aligning prosecution exposure with the Act's penalty framework; the amendment is to have retrospective effect from 1 October 2024.

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AMENDMENTS IN THE FIRST SCHEDULE TO THE CUSTOMS TARIFF ACT, 1975

3 February, 2020

Contents
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Budget 2020-21 + FINANCE BILL, 2020

AMENDMENTS

A.

Tariff rate changes for Basic Customs Duty [to be effective from 02.02.2020] * [Clause 115 (a) of the Finance Bill, 2020]

Rate of Duty

S.No.

Heading, sub-heading, tariff item

Commodity

From

To

 

 

Food processing

 

 

1.

0802 32 00

Walnuts, shelled

30%

100%

 

 

Chemicals

 

 

2.

3824 99 00

Other Chemical products and preparations of the chemical or allied industries, not elsewhere specified

10%

17.5%

 

 

Footwear

 

 

3.

6401, 6402,

6403, 6404, 6405

Footwear

25%

35%

4.

6406

Parts of footwear

15%

20%

 

 

Household Items

 

 

5.

6911 10, 6911 90 20, 6911 90 90

Tableware, kitchenware, water filters (of a capacity not exceeding 40 litres) and other household articles, of porcelain of china.

10%

20%

6.

6912 00 10, 6912 00 20, 6912 00 40, 6912 00 90

Ceramic tableware, kitchen-ware, clay articles and other household articles

10%

20%

7.

7013

Glassware of a kind used for table, kitchen, toilet, office, indoor decoration or Similar purposes (other than that of heading 7010 or 7018)

10%

20%

8.

7323

Table kitchen or other household articles and parts thereof, of iron or steel, iron or steel wool; pot scourers and scouring or polishing pads, gloves and the like, of iron or steel, including pressure cookers pans utensils, misc articles such as iron & steel wool, polishing pads, gloves etc.

10%

20%

9.

7418 10

Table, kitchen or other household articles and parts thereof, of copper; pot scourers and scouring or polishing pads, gloves and the like, of copper.

10%

20%

10.

7615 10

Table, kitchen or other household articles and parts thereof, of aluminum; pot scourer and scouring or polishing pads, gloves and the like, of aluminum.

10%

20%

11.

8301

Padlocks and locks (key, combination or electrically operated) of base metal; Clasps and frames with clasps, incorporating locks of base metals; keys for any of the foregoing articles, of base metals (Other than lock of a kind used for automobiles.)

10%

20%

12.

9603

Brooms, brushes, hand operated mechanical floor sweepers, not motorized, mops and feather dusters; prepared knots and tufts for broom or brush making; paint pads and rollers; Squeegees (other than roller squeegees).

10%

20%

13.

9604 00 00

Hand sieves and hand riddles.

10%

20%

14.

9615

Combs, hair-slides and the like, hairpins curling pins, curling grips, hair curlers and the like other than those of heading 8516 and parts thereof.

10%

20%

15.

9617

Vacuum flasks and other vacuum vessels, complete with cases; parts thereof other than glass inners.

10%

20%

16.

8414 51 10

Table Fans

10%

20%

17.

8414 51 20

Ceiling Fans

10%

20%

18.

8414 51 30

Pedestal Fans

10%

20%

19.

8414 59 20

Blowers, Portable

10%

20%

20.

8509 40 10

Food Grinders

10%

20%

21.

8509 40 90

Other grinders and Mixer

10%

20%

22.

8509 80 00

Other Appliances

10%

20%

23.

8510 10 00

Shavers

10%

20%

24.

8510 20 00

Hair Clippers

10%

20%

25.

8510 30 00

Hair-removing appliances

10%

20%

26.

8516 10 00

Water heaters and immersion heaters

10%

20%

27.

8516 21 00

Storage heating radiators

10%

20%

28.

8516 29 00

Other electrical space heating apparatus

10%

20%

29.

8516 31 00

Hair Dryers

10%

20%

30.

8516 32 00

Other hair dressing apparatus

10%

20%

31.

8516 33 00

Hand Drying apparatus

10%

20%

32.

8516 40 00

Electric smoothing irons

10%

20%

33.

8516 60 00

Other ovens, cookers, cooking plates, boiling rings, grillers and roasters

10%

20%

34.

8516 71 00

Coffee and Tea Makers

10%

20%

35.

8516 72 00

Toasters

10%

20%

36.

8516 79 10

Electro-thermic fluid heaters

10%

20%

37.

8516 79 20

Electrical or electronic devices for repelling insects

10%

20%

38.

8516 79 90

Other electro-thermic appliances used for domestic purposes

10%

20%

39.

8516 80 00

Electric heating resistors

10%

20%

 

 

Precious Metals

 

 

40.

7118

Coin

10%

20%

 

 

Machinery

 

 

41.

8414 51 40

Railway Carriage fans

7.5%

10%

42.

8414 51 90

Other fans with a self-contained electric motor not exceeding 125W

7.5%

20%

43.

8414 59 10

Air Circulator

7.5%

10%

44.

8414 59 30

Industrial fans blowers and similar blowers

7.5%

10%

45.

8414 59 9

Other industrial fans

7.5%

10%

46.

8414 30 00, 8414 80 11

Compressor of Refrigerator and Air conditioner

10%

12.5%

47.

8419 89 10

Pressure vessels

7.5%

10%

48.

8418 10 10

Commercial type combined refrigerator freezers, fitted separate external doors

7.5%

15%

49.

8418 30 10

Commercial freezer of chest type, not exceeding 800 litre capacity

7.5%

15%

50.

8418 30 90

Other chest type freezers

10%

15%

51.

8418 40 10

Electrical freezers of upright type, not exceeding 800 litre capacity

7.5%

15%

52.

8418 40 90

Other freezers of upright type, not exceeding 800 litre capacity

7.5%

15%

53.

8418 50 00

Refrigerating or freezing display counters, cabinets, Show-cases and the like

7.5%

15%

54.

8418 61 00

Heat pumps other than air conditioning machines

7.5%

15%

55.

8418 69 10

Ice making machinery

7.5%

15%

56.

8418 69 20

Water cooler

10%

15%

57.

8418 69 30

Vending machine, other than automatic

10%

15%

58.

8418 69 40

Refrigerating equipment/devices used in leather industry

7.5%

15%

59.

8418 69 50

Refrigerated farm tanks, industrial ice cream freezer

7.5%

15%

60.

8418 69 90

Others (like freezers of capacity 800 litres and more etc.]

7.5%

15%

61.

8515 (except 8515 90 00)

Welding and Plasma cutting machines

7.5%

15%

 

 

Other Electronic goods

 

 

62.

8504 40 (except 8404 40 21)

Static Converters

15%

20%

63.

8504 40 21

Dip bridge rectifier

10%

20%

64.

8517 70 10

Populated, loaded or stuffed printed circuit boards

10%

20%

 

 

Automobile and automobile parts

 

 

65.

8421 39 20, 8421 39 90

Catalytic Convertor

10%

15%

 

 

Furniture Goods

 

 

66.

9401

Seats and parts of seats (other than aircraft seats and their parts)

20%

25%

67.

9403

Other Furniture and parts thereof

20%

25%

68.

9404

Mattress supports: Articles of bedding and similar furnishing

20%

25%

69.

9405

Lamps and lighting fittings including searchlights and spotlights and pads thereof; Illuminated signs, illuminated name plates and the like, having a permanently fixed light source, and parts thereof (except solar lantern and solar lamps).

20%

25%

 

 

Toys

 

 

70.

9503

Tricycles, scooters, pedal-cars and similar wheeled-toys; dolls' carriages; dolls; other toys; reduced-Size (“scale”) models and similar recreational models, working or not; puzzles of all kinds

20%

60%

 

 

Stationary items

 

 

71.

8304 00 00

Filing, cabinets. card-index cabinets, paper-trays, paper rests, pen trays, office-stamp stands and similar office or desk equipment of base metal, Other than office furniture of heading 9403

10%

20%

72.

8305

Fittings for loose-leaf binders or files, letter clips, letter corners, paper clips, indexing tags and similar office articles, of base metal; staples in strips (for example, for offices, upholstery, packaging), of base metal

10%

20%

73.

8310

Sign-plates, name-plates, address-plates and similar plates, numbers, letters and other symbols, of base metal, excluding those of heading 9405

10%

20%

 

 

Miscellaneous

 

 

74.

6702

Artificial Flowers

10%

20%

75.

7018 10 20

Glass Beads

10%

20%

76.

8306

Bells, gongs, statuettes, trophies and like, non-electric of base metal; statuettes and other ornaments of base metal; photograph, picture or similar frames, of base metal; mirrors of base metal.

10%

20%

B.

New entries added to the First Schedule [to be effective from 02.02.2020] * [Clause 115(b) of the Finance Bill, 2020]

S. No

Tariff Item

Description

Tariff Rate

Effective rate

1.

8414 51 50

Wall fans

20%

20%

2.

8529 90 30

Open cell for television set

15%

0%

3.

8541 40 11

Solar cells, not assembled

20%

0%

4.

8541 40 12

Solar cells, assembled in modules or made up in panels

20%

0%

*Will come into effect immediately owing to a declaration under the Provisional Collection of Taxes Act, 1931.

 


Full Text:

Budget 2020-21 + FINANCE BILL, 2020

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Acts Income Tax