Section 122 of the Finance Act, 2026 deals with amendment of section 536. Amendment of section 536. 122. In section 536 of the Income-tax Act, in sub-section (2),— (i) | in the opening portion, for the word, brackets and figure "sub-section (3)", the word, brackets and figure "sub-section (4)" shall be substituted;
Amendment of section 536.
122. In section 536 of the Income-tax Act, in sub-section (2),—
(i)
in the opening portion, for the word, brackets and figure "sub-section (3)", the word, brackets and figure "sub-section (4)" shall be substituted;
(ii)
for clause (g), the following clause shall be substituted, namely:—
"(g) where in respect of any proceeding relating to any tax year beginning before the 1st April, 2026,—
(i)
a refund falls due on or after such date; or
(ii)
default is made on or after such date, in the payment of any sum due under such proceeding,
the provisions of the repealed Income-tax Act, relating to the interest payable by the Central Government on refunds or the interest payable by the assessee for default, shall apply for the period on or after such date, subject to the effect that—
(A)
the rate of interest on refund or on the default, as the case may be, as provided in the repealed Income-tax Act has been substituted with the rate as provided in the corresponding provisions of this Act; and
(B)
such substitution shall apply from the date on which such rate has been modified under this Act;";
(iii)
for clause (h), the following clause shall be substituted, namely:—
"(h) where any sum has been allowed as a deduction or has not been included in the total income of any person, either on account of fulfilment of certain conditions or for any other reason, for any tax year beginning before the 1st April, 2026, and such sum was required to be included in the total income of any subsequent tax year including beginning on or after the 1st April, 2026 under the repealed Income-tax Act, if it had not been so repealed, on account of violation of such conditions or for any other reason, then such sum shall be—
(i)
deemed to be the income of such subsequent tax year; and
(ii)
included in the total income of the said person under the same head of income as it would have been included under the repealed Income-tax Act;";
(iv)
in clause (/), for sub-clauses (i) and (ii), the following sub-clauses shall be substituted, namely:—
"(i)
shall be deemed to be the amount eligible for credit under corresponding provisions or section 206(3) or (4) of this Act, as the case may be in the case of said assessee; and
(ii)
credit for the tax paid under the repealed Income-tax Act shall be allowed under this Act for the period for which it would have been allowed under the repealed Income-tax Act if the assessee otherwise continues to satisfy the conditions as specified in the corresponding provisions or section 206(3) or (4) of this Act, as the case may be in such tax years;".
Section 122, The Finance Act, 2026 (Act 4 of 2026).
Questions about Section 122
What does Section 122 of the Finance Act deal with?
Section 122 of the Finance Act is headed "Amendment of section 536". Amendment of section 536. 122. In section 536 of the Income-tax Act, in sub-section (2),— (i) | in the opening portion, for the word, brackets and figure "sub-section (3)", the word, brackets and figure "sub-section (4)" shall be substituted;
How do I find court cases under Section 122 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 2026 122, section 122 Finance Act 2026, section 122 of the Finance Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
When was the Finance Act enacted?
Finance Act was enacted in 2026 as Act 4 of 2026. India Code records no commencement date for it. It is in force as at the date shown on this page.
Source and method. Compiled from the enactments of Parliament and of the
State legislatures as published on India Code, and republished together with commentary and other original matter under
section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by
eCourtsIndia. 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. This page is not a substitute for legal advice.
