Amendment of section 44AD

Q: When was Section 26 of the Finance Act enacted?

Section 26 of the Finance Act, cited as Finance Act 2016 26, was enacted on 27 Jun 2016. It is in force as at the date shown on this page.

In force As on 10 Oct 2026

Ministry Finance Enacted 27 Jun 2016

Section 26 of the Finance Act, 2016 deals with amendment of section 44AD. Amendment of section 44AD. 26. In section 44AD of the Income-tax Act, with effect from the 1st day of April, 2017,— (a) | in sub-section (2), the proviso shall be omitted; The Act was enacted on 27 Jun 2016.

Amendment of section 44AD.
26. In section 44AD of the Income-tax Act, with effect from the 1st day of April, 2017,—
(a) in sub-section (2), the proviso shall be omitted;
(b) for sub-sections (4) and (5), the following sub-sections shall be substituted, namely:—
"(4) Where an eligible assessee declares profit for any previous year in accordance with the provisions of this section and he declares profit for any of the five assessment years relevant to the previous year succeeding such previous year not in accordance with the provisions of sub-section (1), he shall not be eligible to claim the benefit of the provisions of this section for five assessment years subsequent to the assessment year relevant to the previous year in which the profit has not been declared in accordance with the provisions of sub-section (1).
(5) Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee to whom the provisions of sub-section (4) are applicable and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB.";
(c) in the Explanation, in clause (b), in sub-clause (ii), for the words "one crore rupees" occurring at the end, the words "two crore rupees" shall be substituted.
Section 26, The Finance Act, 2016.

Cross-references

Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.

This section refers to

Income-tax Act s. 44AD Special provision for computing profits and gains of business on presumptive basis

Questions about Section 26

What does Section 26 of the Finance Act deal with?

Section 26 of the Finance Act is headed "Amendment of section 44AD". Amendment of section 44AD. 26. In section 44AD of the Income-tax Act, with effect from the 1st day of April, 2017,— (a) | in sub-section (2), the proviso shall be omitted;

How do I find court cases under Section 26 of the Finance Act?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Finance Act 2016 26, section 26 Finance Act 2016, section 26 of the Finance Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.

What should I read with Section 26 of the Finance Act, and has it changed?

Its own text turns on Income-tax Act 44AD (Special provision for computing profits and gains of business on presumptive basis), so none of them can safely be read on its own.

When was Section 26 of the Finance Act enacted?

Section 26 of the Finance Act, cited as Finance Act 2016 26, was enacted on 27 Jun 2016. It is in force as at the date shown on this page.

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Eighth Schedule. Eighth Schedule19903 words
First Schedule. First Schedule8145 words
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222. Insertion of new Chapter III F2100 words
70. Substitution of new section for section 1531931 words

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(a)		in sub-section (2), the proviso shall be omitted;
(b)		for sub-sections (4) and (5), the following sub-sections shall be substituted, namely:—
		"(4) Where an eligible assessee declares profit for any previous year in accordance with the provisions of this section and he declares profit for any of the five assessment years relevant to the previous year succeeding such previous year not in accordance with the provisions of sub-section (1), he shall not be eligible to claim the benefit of the provisions of this section for five assessment years subsequent to the assessment year relevant to the previous year in which the profit has not been declared in accordance with the provisions of sub-section (1).
		(5) Notwithstanding anything contained in the foregoing provisions of this section, an eligible assessee to whom the provisions of sub-section (4) are applicable and whose total income exceeds the maximum amount which is not chargeable to income-tax, shall be required to keep and maintain such books of account and other documents as required under sub-section (2) of section 44AA and get them audited and furnish a report of such audit as required under section 44AB.";
(c)		in the Explanation, in clause (b), in sub-clause (ii), for the words "one crore rupees" occurring at the end, the words "two crore rupees" shall be substituted.