Amendment of section 206

In force Act 4 of 2026 As on 09 Oct 2026

Act 4 of 2026 Ministry Finance

Section 59 of the Finance Act, 2026 deals with amendment of section 206. Amendment of section 206. 59. In section 206 of the Income-tax Act,— (a) | in sub-section (1),— (i) | in clause (b), in sub-clause (ii), for the figures and symbol "15%", the figures and symbol "14%" shall be substituted;

Amendment of section 206.
59. In section 206 of the Income-tax Act,—
(a) in sub-section (1),—
(i) in clause (b), in sub-clause (ii), for the figures and symbol "15%", the figures and symbol "14%" shall be substituted;
(ii) in clause (i), for sub-clause (ii), the following sub-clause shall be substituted, namely:—
"(ii) the assessee has not utilised the credit of tax paid under section 115JAA of the Income-tax Act, 1961 (43 of 1961), in any subsequent tax year ending on or before the 31st March, 2026,";
(iii) in clause (l), in sub-clause (iii), the brackets, words, letters and figures "(Table: Sl. Nos. 1, 3, 4 and 5)" shall be omitted;
(iv) clauses (m), (n), (o) and (p) shall be omitted;
(v) in clause (q), in the opening portion, for the word "section", the word "sub-section" shall be substituted;
(vi) clause (r) shall be omitted;
(vii) in clause (5), for the words "which this section", the words "which this sub-section" shall be substituted;
(b) for sub-section (3), the following sub-sections shall be substituted, namely:—
"(3) (a) The provisions of this sub-section shall be applicable only to an assessee, being a domestic company, that has exercised the option under section 200(5) or section 201(2) for a tax year, beginning on or after the 1st April, 2026.
(b) Where any amount of credit, in respect of tax paid, was allowed to be carried forward to the assessee under the provisions of section 115JAA of the Income-tax Act, 1961 (43 of 1961), as on 31st March, 2026,—
(i) such credit brought forward shall be allowed to be set off in any tax year to the extent of 25% of the tax payable on the total income computed as per the other provisions of this Act for that tax year;
(ii) the remaining credit shall be carried forward to the subsequent tax year; and
(iii) such carry forward or set off of tax credit shall not be allowed beyond the fifteenth tax year immediately succeeding the tax year in which the tax credit first became allowable under section 115JAA of the Income-tax Act, 1961 (43 of 1961).
(c) Where, as a result of any order passed under this Act, tax payable under this Act is decreased or increased, as the case may be, tax credit allowed to be set off under clause (b) shall also be decreased or increased, accordingly.
(d) In case of conversion of a private company or unlisted public company into a limited liability partnership under the Limited Liability Partnership Act, 2008 (6 of 2009), the provisions of clauses (a) and (b) shall not apply to the successor limited liability partnership.
(4) (a) The provisions of this sub-section shall be applicable only to an assessee, being a foreign company.
(b) Where, any amount of credit in respect of tax paid was allowed to be carried forward to the assessee under the provisions of section 115JAA of the Income-tax Act, 1961 (43 of 1961), as on 31st March, 2026,—
(i) such tax credit shall be carried forward and set off in a tax year, when tax payable on the total income computed as per the provisions of this Act exceeds the minimum alternate tax computed as per provisions of sub-section (1);
(ii) such set off in respect of brought forward tax credit shall be allowed for any tax year to the extent of the difference between the tax liability on the total income computed as per the other provisions of this Act and the minimum alternate tax for that tax year; and
(iii) such carry forward or set off of tax credit shall not be allowed beyond the fifteenth tax year immediately succeeding the tax year in which the tax credit first became allowable under section 115JAA of the Income-tax Act, 1961 (43 of 1961).
(c) Where, as a result of any order passed under this Act, tax payable under this Act is decreased or increased, as the case may be, tax credit allowed to be set off under clause (b) shall also be decreased or increased, accordingly.
(d) In case of conversion of a private company or unlisted public company into a limited liability partnership under the Limited Liability Partnership Act, 2008, the provisions of clauses (a) and (b) shall not apply to the successor limited liability partnership.
(5) Save as otherwise provided in this section, all other provisions of this Act shall apply to every assessee mentioned in this section.".
Section 59, 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

Questions about Section 59

What does Section 59 of the Finance Act deal with?

Section 59 of the Finance Act is headed "Amendment of section 206". Amendment of section 206. 59. In section 206 of the Income-tax Act,— (a) | in sub-section (1),— (i) | in clause (b), in sub-clause (ii), for the figures and symbol "15%", the figures and symbol "14%" shall be substituted;

How do I find court cases under Section 59 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 59, section 59 Finance Act 2026, section 59 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 59 of the Finance Act, and has it changed?

Its own text turns on Income-tax Act 115JAA (Tax credit in respect of tax paid on deemed income relating to certain companies), Income-tax Act 206 (Persons deducting tax to furnish prescribed returns), 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

First Schedule. -11686 words
3. Income-tax under Act 30 of 20258033 words
Fourth Schedule. -4078 words
2. Income-tax under Act 43 of 19612736 words
26. Substitution of new sections for sections 276B, 276BB, 276C, 276CC, 276CCC and 276D1437 words
Fifth Schedule. -1363 words

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.

(i)		in clause (b), in sub-clause (ii), for the figures and symbol "15%", the figures and symbol "14%" shall be substituted;
(ii)		in clause (i), for sub-clause (ii), the following sub-clause shall be substituted, namely:—

(iii)		in clause (l), in sub-clause (iii), the brackets, words, letters and figures "(Table: Sl. Nos. 1, 3, 4 and 5)" shall be omitted;
(iv)		clauses (m), (n), (o) and (p) shall be omitted;
(v)		in clause (q), in the opening portion, for the word "section", the word "sub-section" shall be substituted;
(vi)		clause (r) shall be omitted;
(vii)		in clause (5), for the words "which this section", the words "which this sub-section" shall be substituted;

(b)		for sub-section (3), the following sub-sections shall be substituted, namely:—
		"(3) (a) The provisions of this sub-section shall be applicable only to an assessee, being a domestic company, that has exercised the option under section 200(5) or section 201(2) for a tax year, beginning on or after the 1st April, 2026.
		(b) Where any amount of credit, in respect of tax paid, was allowed to be carried forward to the assessee under the provisions of section 115JAA of the Income-tax Act, 1961 (43 of 1961), as on 31st March, 2026,—

(i)		such credit brought forward shall be allowed to be set off in any tax year to the extent of 25% of the tax payable on the total income computed as per the other provisions of this Act for that tax year;
(ii)		the remaining credit shall be carried forward to the subsequent tax year; and
(iii)		such carry forward or set off of tax credit shall not be allowed beyond the fifteenth tax year immediately succeeding the tax year in which the tax credit first became allowable under section 115JAA of the Income-tax Act, 1961 (43 of 1961).

		(c) Where, as a result of any order passed under this Act, tax payable under this Act is decreased or increased, as the case may be, tax credit allowed to be set off under clause (b) shall also be decreased or increased, accordingly.
		(d) In case of conversion of a private company or unlisted public company into a limited liability partnership under the Limited Liability Partnership Act, 2008 (6 of 2009), the provisions of clauses (a) and (b) shall not apply to the successor limited liability partnership.

(i)		such tax credit shall be carried forward and set off in a tax year, when tax payable on the total income computed as per the provisions of this Act exceeds the minimum alternate tax computed as per provisions of sub-section (1);
(ii)		such set off in respect of brought forward tax credit shall be allowed for any tax year to the extent of the difference between the tax liability on the total income computed as per the other provisions of this Act and the minimum alternate tax for that tax year; and
(iii)		such carry forward or set off of tax credit shall not be allowed beyond the fifteenth tax year immediately succeeding the tax year in which the tax credit first became allowable under section 115JAA of the Income-tax Act, 1961 (43 of 1961).