{"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":"42","heading":"Amendment of section 69","text":"Amendment of section 69. 42. In section 69 of the Income-tax Act, for sub-sections (2) and (3), the following sub-sections shall be substituted, namely:— '(2) In respect of capital gains referred to in sub-section (1), where a company purchases its own shares or other specified securities in accordance with the provisions of section 68 of the Companies Act, 2013 (18 of 2013) and the shareholder or holder of other specified securities is a promoter, the aggregate income-tax payable on such capital gains shall be— (a) | the income-tax payable on such capital gains in accordance with the provisions of this Act; and (b) | an additional income-tax in respect of capital gains specified in column B of the Table below, computed at the rate specified in column C or column D of the said Table. TABLE Sl. No. | Income | Rate, where the promoter is a domestic company | Rate, where the promoter is other than a domestic company A | B | C | D 1. | Short-term capital gains referred to in section 196 arising from the transfer of such securities. | 2% | 10% 2. | Long-term capital gains referred to in section 197 or section 198 arising from the transfer of such securities. | 9.5% | 17.5% (3) For the purposes of this section,— (a) | in the case of a company whose shares are listed on a recognised stock exchange in India, \"promoter\" shall have the same meaning as assigned to it in regulation 2(k) of the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992); (b) | in any other case, \"promoter\" means,— (i) | a \"promoter\" as defined in section 2(69) of the Companies Act, 2013 (18 of 2013); or (ii) | a person who holds, directly or indirectly, more than 10% of the shareholding in the company; (c) | \"specified securities\" shall have the same meaning as assigned to it in Explanation 1 to section 68 of the Companies Act, 2013 (18 of 2013).'.","html":"

Amendment of section 69.

42. In section 69 of the Income-tax Act, for sub-sections (2) and (3), the following sub-sections shall be substituted, namely:—

'(2) In respect of capital gains referred to in sub-section (1), where a company purchases its own shares or other specified securities in accordance with the provisions of section 68 of the Companies Act, 2013 (18 of 2013) and the shareholder or holder of other specified securities is a promoter, the aggregate income-tax payable on such capital gains shall be—

(a)the income-tax payable on such capital gains in accordance with the provisions of this Act; and
(b)an additional income-tax in respect of capital gains specified in column B of the Table below, computed at the rate specified in column C or column D of the said Table.

TABLE

Sl. No.IncomeRate, where the promoter is a domestic companyRate, where the promoter is other than a domestic company
ABCD
1.Short-term capital gains referred to in section 196 arising from the transfer of such securities.2%10%
2.Long-term capital gains referred to in section 197 or section 198 arising from the transfer of such securities.9.5%17.5%

(3) For the purposes of this section,—

(a)in the case of a company whose shares are listed on a recognised stock exchange in India, \"promoter\" shall have the same meaning as assigned to it in regulation 2(k) of the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992);
(b)in any other case, \"promoter\" means,—
(i)a \"promoter\" as defined in section 2(69) of the Companies Act, 2013 (18 of 2013); or
(ii)a person who holds, directly or indirectly, more than 10% of the shareholding in the company;
(c)\"specified securities\" shall have the same meaning as assigned to it in Explanation 1 to section 68 of the Companies Act, 2013 (18 of 2013).'.
","words":349,"text_source":"published"},"classification":[],"instruments":[],"judgments":[],"corresponds_to":[],"url":"https://indiacode.ecourtsindia.com/finance-act-2026/section/42/","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."}