Union Budget 2026-27 - Finance Bill, 2026

Section 99(1)(a)(i) of the Act provides that income of individual to include income of spouse by way of salary, commission etc., from a concern in which the individual has a substantial interest.

2. Section 99(1)(a)(ii) provides that income of individual to include income arising to the spouse from assets transferred.

3. Section 99(2) deals with proportion of income to be included in the hands of individual where asset is transferred. However, in sec. 99(2) inadvertently reference of 99(1)(a)(i) has been given instead of 99(1)(a)(ii).

4. To correct the aforesaid referencing error, it is proposed to correct section 99(2) to give correct reference of 99(1)(a)(ii).56

5. It is proposed to amend section 402(27) of the Income-tax Act, 2025.

6. This amendment will take effect from 1st April, 2026.

[Clause 37]

 

---

Full Text:

Union Budget 2026-27 - Finance Bill, 2026

Union Budget amendment corrects a cross reference to ensure spouse income from transferred assets is properly attributed. Section 99(2) currently misreferences the provision governing spouse income from transferred assets by citing the clause on salary or commission, and the Finance Bill proposes to correct section 99(2) to cite the clause dealing with income arising from transferred assets; the Bill also proposes an amendment to section 402(27), both taking effect from 1 April 2026.