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Section60
The Finance Act, 2026

Substitution of new sections for sections 217 and 218

In force Act 4 of 2026 As on 09 Oct 2026

Act 4 of 2026 Ministry Finance

Section 60 of the Finance Act, 2026 deals with substitution of new sections for sections 217 and 218. Substitution of new sections for sections 217 and 218.

Substitution of new sections for sections 217 and 218.

60. For sections 217 and 218 of the Income-tax Act, the following sections shall be substituted, namely:—

Application of benefits under sections 212 to 216.

"217.

(1) Where a non-resident Indian in any tax year,—

(a)becomes assessable as a resident in India in respect of total income in a subsequent year; and
(b)furnishes a declaration in writing to the Assessing Officer along with his return of income under section 263 for the tax year for which he is so assessable, to the effect that provisions of sections 212 to 216 shall continue to apply to him in relation to the investment income derived from any foreign exchange asset referred to in section 212(e) other than shares in an Indian company, then the provisions of sections 212 to 216 shall continue to apply in relation to such income for that tax year and every subsequent tax year until the transfer or conversion (otherwise than by transfer) of such assets into money.

(2) A non-resident Indian may choose not to be governed by the provisions of sections 212 to 216 for any tax year by declaring it in his return of income under section 263 for such tax year, and if he does so,—

(a)the provisions of sections 212 to 216 shall not apply to him for that tax year; and
(b)his total income for that tax year shall be computed and charged to tax according to the other provisions of this Act.

Tax on business income of Offshore Banking Units or International Financial Services Centre unit.

218. Where the total income of an assessee includes income of the nature referred to in section 147(3), the aggregate of income-tax payable by the assessee shall be the aggregate of income-tax computed on the income specified in column B of the Table below at the rate specified in the corresponding entry in column C of the said Table:

TABLE

Sl. No.IncomeRate of income-tax payable
ABC
1.Income referred to in section 147(3)15%
2.Total income as reduced by income referred to in Sl. No. (1).Rates in force.".
Section 60, 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. s. 147 Amendment of section 28
  2. Income-tax Act s. 217 Interest payable by assessee when no estimate made
  3. Income-tax Act s. 218 When assessee deemed to be in default

Questions about Section 60

What does Section 60 of the Finance Act deal with?

Section 60 of the Finance Act is headed "Substitution of new sections for sections 217 and 218". Substitution of new sections for sections 217 and 218.

How do I find court cases under Section 60 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 60, section 60 Finance Act 2026, section 60 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 60 of the Finance Act, and has it changed?

Its own text turns on section 147 (Amendment of section 28), Income-tax Act 217 (Interest payable by assessee when no estimate made), Income-tax Act 218 (When assessee deemed to be in default), 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.