Income Tax Act 2025: Section 530 for Tax Year 2026-27

Act to have effect pending legislative provision for charge of tax

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

If on the 1st April in any tax year, provision has not yet been made by a Central Act for the charging of income-tax for that tax year, this Act shall nevertheless have effect until such provision is so made, as if the provision in force in the preceding tax year or the provision proposed in the Bill then before Parliament, whichever is more favourable to the assessee, were actually in force.

FAQs on Section 530 of the Income Tax Act 2025

1. What is Section 530 of the Income Tax Act, 2025?
   Section 530 ensures that in the absence of a new Finance Act for a tax year, the tax provisions from the previous year or the proposed provisions in the Bill before Parliament (whichever is more favorable to the assessee) will apply.
2. When does Section 530 come into effect?
   This section is applicable starting April 1, 2026, for the tax year 2025-26 and onwards.
3. Why is Section 530 important?
   It provides continuity in taxation in case Parliament has not yet passed a new Finance Act for the relevant tax year.
4. Does Section 530 permanently replace the Finance Act?
   No, it only serves as a temporary provision until the actual Finance Act is enacted for that tax year.
5. Who does Section 530 apply to?
   It applies to all taxpayers, including individuals, businesses, and other entities, ensuring tax continuity.
6. Does this section affect tax rates and slabs?
   Yes, if no new Finance Act is passed by April 1, then the tax rates and slabs from the previous year or the proposed Bill (whichever benefits the taxpayer) will apply.
7. How does Section 530 impact tax exemptions and deductions?
   The same principle applies: exemptions and deductions from the previous year or proposed Bill will be in force until the new Finance Act is enacted.
8. Will tax payments and filing deadlines be affected?
   No, taxpayers must continue to follow the existing deadlines and procedures as per the applicable provisions.
9. What if the Finance Act is passed after April 1?
   Once the new Finance Act is enacted, its provisions will replace the temporary ones applied under Section 530.
10. Does Section 530 apply every year?
    No, it is only relevant in cases where the new Finance Act is not enacted before the start of the tax year.
11. How does Section 530 impact businesses and investors?
    Businesses and investors benefit from continuity, avoiding uncertainties in taxation until a new Finance Act is passed.
12. Can taxpayers challenge the applicability of this section?
    Since Section 530 is a statutory provision, it is binding and cannot be challenged unless legally amended or repealed.

Section 530 of the Income Tax Act, 2025, ensures continuity in tax provisions if a new Finance Act is not enacted by April 1 of a tax year. In such cases, the tax laws from the previous year or the proposed provisions in the Bill before Parliament (whichever is more favorable to taxpayers) will apply until the new Finance Act is passed.

This prevents disruptions in tax compliance, ensuring stability for individuals, businesses, and investors. Once the new Finance Act comes into effect, it overrides the temporary provisions applied under this section.