- Finance Minister Nirmala Sitharaman will propose 53 amendments to the Finance Bill 2026 in Lok Sabha
- 32 amendments are substantive, focusing on easing and expanding the income tax framework
- Reassessment timelines can be extended based on court or tribunal orders under new rules
Finance Minister Nirmala Sitharaman will move 53 amendments to the Finance Bill 2026 in the Lok Sabha on Wednesday focusing primarily on easing the income tax framework. Of these, 32 are substantive amendments and the rest are administrative, sources told NDTV Profit.
The proposed amendments aim to expand the powers of the tax department to reopen assessment cases based on orders passed by courts and appellate tribunals. Under the changes, reassessment will be permitted beyond existing timelines if it is linked to findings or directions issued by appellate authorities. This would also allow older tax cases to be revisited when supported by judicial orders.
The government is also seeking to plug loopholes related to reassessment timelines, while introducing clearer procedural safeguards. Tax notices will carry a defined response period, with a minimum timeline of 30 days and an outer limit of three months.
In addition, approvals granted by tax officials will be protected from being challenged on technical grounds, strengthening the department's position during litigation.
On the incentives front, the amendments propose extending SEZ tax deduction benefits to 20 years in certain cases, including IFSC units under Section 80LA. Capital gains tax relief is also proposed for beneficiaries under the Andhra Pradesh land pooling scheme.
The changes come as the country prepares for the full rollout of the new, simplified Income-tax Act, 2025, which replaces the 1961 Act from April 1.
ALSO READ: Income Tax Act 2025: How Simplification Of IT Rules Will Come About?
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