Income Tax Act 2025: Section 526 for Tax Year 2025-26

Bar of suits in civil courts

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

No suit shall be brought in any civil court to set aside or modify any proceeding taken or order made under this Act, and no prosecution, suit or other proceeding shall lie against the Government or any officer of the Government for anything in good faith done or intended to be done under this Act.

FAQs on Section 526 of the Income Tax Act, 2025

1. What does Section 526 of the Income Tax Act, 2025, state?
   • It bars civil courts from entertaining suits that seek to modify or set aside any proceedings or orders made under the Act.
2. From when does Section 526 apply?
   • It applies from April 1, 2026, for the tax year 2025-26 onward.
3. Can I file a case in a civil court against an income tax order?
   • No, as per Section 526, civil courts cannot entertain such cases.
4. Does Section 526 protect government officers from legal action?
   • Yes, government officers cannot be sued for actions done in good faith under the Act.
5. Can I sue the government if I believe an income tax order is unfair?
   • No, but you can challenge the order through the appropriate appellate and review mechanisms provided under the Income Tax Act.
6. What does “good faith” mean in this context?
   • “Good faith” means actions taken with honest intent and without malicious intent or negligence.
7. If I can’t go to a civil court, how can I challenge a tax order?
   • You can appeal through the Income Tax Tribunal or other designated appellate bodies.
8. Can I file a criminal case if I suspect fraud by a tax officer?
   • Section 526 only bars civil suits. If a tax officer engages in fraud or corruption, criminal complaints can be lodged through appropriate legal channels.
9. Does Section 526 prevent judicial review by higher courts?
   • No, constitutional courts (High Court, Supreme Court) still have jurisdiction under writ petitions for violations of fundamental rights.
10. If my tax refund is delayed, can I sue in a civil court?
    • No, but you can file a complaint with the Income Tax Department or take the matter to a tax tribunal.
11. Can businesses also not sue under Section 526?
    • Correct, both individuals and businesses are covered under this provision.
12. Does this rule apply to other taxes, like GST?
    • No, it is specific to the Income Tax Act, 2025. Other tax laws may have similar provisions.

Section 526 of the Income Tax Act, 2025, effective from April 1, 2026, bars civil courts from hearing suits that seek to modify or set aside any proceedings or orders made under the Act. It also grants immunity to the government and its officers from legal action for actions taken in good faith under the law.

However, taxpayers can still challenge tax orders through appellate bodies like the Income Tax Tribunal and may seek judicial review in constitutional courts if fundamental rights are violated. This provision ensures tax matters are handled within the designated tax framework rather than through civil litigation.