• Source:PTI
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Finance Act 2026: Paving the way for the implementation of changes in tax provisions from the day of begining of the new financial year, the government has notified the Finance Act 2026. According to an official notification issued by the Ministry of Law and Justice, this Act gives effect to financial proposals of the central government for 2026-27. 

"The following Act of Parliament received the assent of the President on March 30, 2026 and is hereby published for general information," it said.

Finance Bill Was Approved By Parliament

Last week, Parliament approved the Finance Bill 2026 after the Rajya Sabha sent it back to the Lok Sabha by voice vote. With this, the budget process for the next financial year, which began on April 1, was completed.

Earlier, the bill was passed in the Lok Sabha on March 25 with 32 amendments. Later, it was sent for discussion into upper house. Finance Minister Nirmala Sitharaman also replied to the questions raised by the members in both houses. 

The Union Budget 2026-27 has a total allocation of Rs. 53.47 lakh crore, an increase of 7.7 per cent over the current financial year ending March 31. The total capital allocation proposed for the next financial year is Rs. 12.2 lakh crore.

It proposes a total tax revenue collection of Rs. 44.04 lakh crore and a total debt of Rs. 17.2 lakh crore. The fiscal deficit, which was 4.4 per cent in the current fiscal year, is projected to decline to 4.3 per cent of GDP in fiscal year 2027.

Finance Act Provisions

As per the Finance Act, from April 1, capital gains realised by individual or corporate shareholders on the sale of shares through a share buyback scheme offered by companies will be subject to a fixed surcharge of 12 per cent.

Since a lower surcharge regime was in place earlier, levying a fixed surcharge of 12 per cent on capital gains realised by individual shareholders on share buyback will significantly increase their actual tax burden.

Also Read: ITR-1 to ITR-7 Forms Released For AY 2026-27; Check Which Form Is Applicable To You

Currently, no surcharge is levied on taxable income up to Rs. 50 lakh, whereas for taxable income between Rs. 50 lakh and Rs. 1 crore, a 10 per cent surcharge is levied on capital gains realised on share buyback.

Disclaimer: This story has been written with the help of agency feed (PTI). 


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