Finance Bill 2026: Key tax rule changes
The Finance Bill 2026, unveiled today, brings some important tweaks to India's tax rules—mainly to clear up confusion after recent court cases.
Here's what stands out and why it matters.
Draft assessment timelines clarified
The bill clarifies that the general limitation periods in Sections 153 and 153B apply only to the passing of the draft order, and that once the draft order is forwarded under Section 144C(1) the timeline for completing the final assessment is governed by Section 144C.
The final assessment must be completed within one month from the end of the month in which DRP directions are received or the acceptance is received.
This update settles past legal debates and applies retroactively from 2009.
Who can issue reassessment notices?
A new section confirms that only local tax officers—not the National Faceless Assessment Centre—can handle reassessment notices in some cases.
This move responds to courts questioning who really has authority under the Faceless Scheme, and it takes effect from April 2021.
What if there's a typo in your DIN?
If there's a typo or glitch in your Document Identification Number (DIN) on tax paperwork—but it's still referenced—the assessment stays valid.
This change overrides earlier court rulings and is effective from October 2019.