{"act":{"id":"finance-act-2026","short_title":"The Finance Act, 2026","long_title":"An Act to give effect to the financial proposals of the Central Government for the financial year 2026-2027.","act_number":"4","act_year":2026,"enact_date":null,"enforcement_date":null,"ministry":"Ministry of Finance","department":"Department of Revenue","jurisdiction":"CENTRAL","unit":"section","section_count":167,"in_force":true,"spent":false,"spent_note":null,"duplicate_of":null,"text_source":"published","scan_url":null,"url":"https://indiacode.ecourtsindia.com/finance-act-2026/"},"unit":"section","section":{"number":"127","heading":"Amendment of Schedule XI","text":"Amendment of Schedule XI. 127. In Schedule XI to the Income-tax Act,— (a) | in Part A,— (i) | in paragraph 4,— (A) | clause (c) shall be omitted; (B) | for clause f), the following clause shall be substituted, namely:— \"(f) the fund shall be a fund— (i) | of an establishment to which the provisions of section 1(3) of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952) apply; or (ii) | of an establishment notified by the Central Provident Fund Commissioner under section 1(4) of the said Act, and such establishment shall obtain exemption under section 17 of the said Act from the operation of all or any of the provisions of any scheme as referred to in that section;\"; (ii) | in paragraph 5, sub-paragraph (4) shall be omitted; (iii) | for paragraph 6, the following paragraph shall be substituted, namely:— \"6. Employer's annual contributions, when deemed to be income received by employee.—The portion of the annual accretion in the tax year to the balance of an employee in a recognised provident fund consisting of interest credited on the balance to the credit of an employee in so far as it is allowed at a rate exceeding such rate as fixed by the Central Government by notification, shall be deemed to have been received by the employee and included in his total income for that tax year and shall be liable to income-tax.\"; (b) | in Part C, in paragraph 1,— (i) | clause (d) shall be omitted; (ii) | for clause (e), the following clause shall be substituted, namely:— \"(e) to regulate investment or deposit of the moneys of a recognised or an approved fund;\".","html":"<p><b>Amendment of Schedule XI.</b></p><p><b>127.</b> In Schedule XI to the Income-tax Act,—</p><div class=\"tablewrap\"><table class=\"dtable\"><tr><td>(<i>a</i>)</td><td></td><td>in Part A,—</td></tr></table></div><div class=\"tablewrap\"><table class=\"dtable\"><tr><td>(<i>i</i>)</td><td></td><td>in paragraph 4,—</td></tr></table></div><div class=\"tablewrap\"><table class=\"dtable\"><tr><td>(<i>A</i>)</td><td></td><td>clause (<i>c</i>) shall be omitted;</td></tr><tr><td>(<i>B</i>)</td><td></td><td>for clause f), the following clause shall be substituted, namely:—</td></tr></table></div><div class=\"tablewrap\"><table class=\"dtable\"><tr><td></td><td></td><td>\"(<i>f</i>) the fund shall be a fund—</td></tr></table></div><div class=\"tablewrap\"><table class=\"dtable\"><tr><td>(<i>i</i>)</td><td></td><td>of an establishment to which the provisions of section 1(3) of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952) apply; or</td></tr><tr><td>(<i>ii</i>)</td><td></td><td>of an establishment notified by the Central Provident Fund Commissioner under section <i>1</i>(<i>4</i>) of the said Act,</td></tr></table></div><div class=\"tablewrap\"><table class=\"dtable\"><tr><td></td><td></td><td>and such establishment shall obtain exemption under section 17 of the said Act from the operation of all or any of the provisions of any scheme as referred to in that section;\";</td></tr></table></div><div class=\"tablewrap\"><table class=\"dtable\"><tr><td>(<i>ii</i>)</td><td></td><td>in paragraph 5, sub-paragraph (4) shall be omitted;</td></tr><tr><td>(<i>iii</i>)</td><td></td><td>for paragraph 6, the following paragraph shall be substituted, namely:—</td></tr></table></div><div class=\"tablewrap\"><table class=\"dtable\"><tr><td></td><td></td><td>\"6. Employer's annual contributions, when deemed to be income received by employee.—The portion of the annual accretion in the tax year to the balance of an employee in a recognised provident fund consisting of interest credited on the balance to the credit of an employee in so far as it is allowed at a rate exceeding such rate as fixed by the Central Government by notification, shall be deemed to have been received by the employee and included in his total income for that tax year and shall be liable to income-tax.\";</td></tr></table></div><div class=\"tablewrap\"><table class=\"dtable\"><tr><td>(<i>b</i>)</td><td></td><td>in Part C, in paragraph 1,—</td></tr></table></div><div class=\"tablewrap\"><table class=\"dtable\"><tr><td>(<i>i</i>)</td><td></td><td>clause (<i>d</i>) shall be omitted;</td></tr><tr><td>(<i>ii</i>)</td><td></td><td>for clause (<i>e</i>)<i>,</i> the following clause shall be substituted, namely:—</td></tr><tr><td></td><td></td><td>\"(<i>e</i>) to regulate investment or deposit of the moneys of a recognised or an approved fund;\".</td></tr></table></div>","words":283,"text_source":"published"},"classification":[],"instruments":[],"judgments":[],"corresponds_to":[],"url":"https://indiacode.ecourtsindia.com/finance-act-2026/section/127/","note":null,"source_note":"Harvested from the Income Tax Department's own portal at incometaxindia.gov.in, which publishes the Finance Acts section by section. India Code carries none of them: its Central community holds the Acts that stand as general law, and a Finance Act is an amending and rate-fixing instrument.","judgments_note":"Judgment holdings are the ratio decidendi as extracted from the order by eCourts India, reproduced unaltered. Reported judgments only.","licence":"Published with commentary and other original matter under s.52(1)(q)(ii), Copyright Act 1957."}