Income Tax Act 2025: Section 350 for Tax Year 2026-27

Permitted modes of investment

[Section-350 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]

Section 350(1) of Income Tax Act 2025

350(1) The modes of investing or depositing the money under this Part, shall be such as specified in Schedule XVI.

Section 350(2) of Income Tax Act 2025

350(2) The modes of investing or depositing money under this Part, other than the modes specified in Schedule XVI, shall be specified by the Central Government, by notification.

FAQs on Section 350 of Income Tax Act 2025

What are the permitted modes of investment under Section 350(1) of the Income Tax Act, 2025?
The permitted modes of investing or depositing money under Section 350(1) are those specified in Schedule XVI of the Income Tax Act, 2025.

Can money be invested in modes not listed in Schedule XVI under the Income Tax Act, 2025?
Yes, under Section 350(2), the Central Government may specify additional permitted modes of investment or deposit, through a notification, apart from those listed in Schedule XVI.

Is there a need to follow Schedule XVI for all investments under this Part of the Act?
Yes, investments or deposits under this Part must follow the modes specified in Schedule XVI unless the Central Government notifies other permissible modes.

Who has the authority to notify additional permitted investment modes under Section 350?
The Central Government has the authority to notify additional modes of investment or deposit under Section 350(2) of the Income Tax Act, 2025.

From when is Section 350 of the Income Tax Act, 2025 effective?
Section 350 is effective from 1st April, 2026.

Where can one find the complete list of permitted investment modes under this provision?
The complete list is provided in Schedule XVI of the Income Tax Act, 2025, and may be supplemented by notifications issued by the Central Government.

Can an assessee choose any investment mode outside Schedule XVI without government notification?
No, unless the mode is officially notified by the Central Government under Section 350(2), investments must strictly follow the options listed in Schedule XVI.