eCourtsIndia
IndiaCode Laws
Section42
The Finance Act, 2026

Amendment of section 69

In force Act 4 of 2026 As on 09 Oct 2026

Act 4 of 2026 Ministry Finance

Section 42 of the Finance Act, 2026 deals with amendment of section 69. 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 accorda

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).'.
Section 42, The Finance Act, 2026 (Act 4 of 2026).

Cross-references

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

This section refers to

  1. Companies Act s. 68 Power of company to purchase its own securities
  2. s. 2 Income-tax under Act 43 of 1961
  3. s. 69 Amendment of section 270
  4. Income-tax Act s. 69 Unexplained investments

Questions about Section 42

What does Section 42 of the Finance Act deal with?

Section 42 of the Finance Act is headed "Amendment of section 69". 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 accorda

How do I find court cases under Section 42 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 42, section 42 Finance Act 2026, section 42 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 42 of the Finance Act, and has it changed?

Its own text turns on Companies Act 68 (Power of company to purchase its own securities), section 2 (Income-tax under Act 43 of 1961), section 69 (Amendment of section 270), Income-tax Act 69 (Unexplained investments), so none of them can safely be read on its own.

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.

Other sections of this Act

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.